In the Spanish property market, finding the perfect home at an affordable price can initially seem either impossible or highly complex. Nevertheless, many buyers, whether through adopting a sound strategy or benefiting from good timing, have succeeded in securing their dream home at a significantly reduced price. In this article, we share three success stories.
Carolina Moreno: being at the right place at the right time
Amid the coronavirus pandemic, Carolina, a digital marketing and advertising professional based in Marbella, was forced to leave her rental property and begin searching for a new home. With a partner, a dog and a cat, the task was far from easy. Finding a property that not only permitted pets but also offered enough space to live comfortably was well beyond her budget.
"I had been paying around €600 in rent for a two-bedroom, two-bathroom terraced house until my tenancy ended. When I started searching for a similar property, prices were no less than €1,100 to €1,200. I didn’t know what to do," Carolina Moreno shared with idealista/news.
It was at that moment she considered buying a home. She came across a house of around 80 m² with two bedrooms, one bathroom and a garden, located in Estepona. While it was a bit far from her workplace, it had all the features she was looking for at an appealing price: €165,000.
With support from her parents, she managed to save the 20% deposit required to secure a mortgage. She also took advantage of all the grants available in Andalusia for young people purchasing their first home. Having the necessary funds allowed her to negotiate further by making a firm offer: to buy the property immediately if a discount was granted. It worked. She purchased the house for €147,000.
"I couldn’t believe it. I saw houses on the same housing development that were in worse condition and selling for more. This one was ready to move into and didn’t even need any renovation," Carolina shares. "Now, four years after the purchase, the other houses are on the market for at least €220,000. I think I was very fortunate."
Carolina currently pays a fixed-rate mortgage of €537 for her home. In the same residential area, similar properties are rented for between €1,200 and €1,500.
How Alfredo López tripled his investment
The next success story comes from the luxury property sector. Alfredo Lopez, a surgeon at the peak of his career, was searching for a larger home for his family, as well as a long-term investment.
"One of the best investment options for long-term returns is property. While you live in your home, its value appreciates, which can be incredibly helpful at certain stages of life, such as retirement," he explains.
A frequent idealista user in search of opportunities, Alfredo came across a house with a price he found extraordinary. It was a villa located in one of Madrid's most exclusive areas, featuring a 1,000 m² plot, 360 m² of built space distributed across two homes (a two-storey main house and a guest house), as well as a spacious tree-lined garden and a swimming pool. The price: €1.1 million.
“It needed a complete renovation, as the décor was very much 19th-century, and there were several things that needed fixing. But the moment I saw the house, I realised the enormous potential it had,” Alfredo recalls. “For me, the price was far below its true value. In the same area, similar houses, in terms of size and condition, were being sold for €2 to €2.5 million.”
The property is situated in an area of outstanding natural beauty, where there are very few remaining plots available for development. This leads Alfredo to believe that the value of his home will continue to increase over the coming years.
“The full renovation took nearly a year to complete, although we were able to live in the house while the work was done in phases, and it cost around €300,000. It was a significant amount, but it was the right decision. I have been offered €3.5 million for the house – the latest offer came just two weeks ago. But I have no desire to move; I’m living in the house of my dreams,” he concludes.
A. García: the story of a bargain
One of the most recent success stories of buyers who secured their ideal home at a reduced price is that of A. García, who has chosen to remain anonymous, largely due to the short time since the transaction.
"Every morning when I wake up in my new home, I can hardly believe it," the interview begins. "As soon as I viewed the property, I told my partner to keep a straight face in front of the owner's estate agent."
With their wedding just a few months away and plans to start a family, A. García and his fiancée were searching for a larger home. Given their demanding work schedules, they decided to enlist the services of an estate agent to assist them in their search.
The agent showed them a property in Nagüeles-Milla de Oro, one of the most sought-after residential areas in Marbella and the district with the highest average price, which far exceeded their expectations. It was a semi-detached house of about 300 m2, with several terraces, a basement and parking in a gated community for €650,000.
According to the latest report from idealista, the average price per square metre is €6,342/m2. That is, if we apply that price to the property's 300 m2, it should cost €1,902,600.
"On the development, some houses are selling for €1 million, others for over €850,000 and some close to €700,000," explains A. García. "Thanks to our estate agent, we even managed to negotiate a lower price. The asking price was €650,000, but we secured the house for €575,000. Before signing the deeds, we visited the property several times, as we had a feeling something wasn’t quite right."
A. García smiles before adding, "But we've now been living here for a couple of months, and we’re happier every day. We had to fix a few things, but nothing out of the ordinary when moving in. Our only concern is the tax office, as the property was valued higher than the purchase price recorded in the deed," he concludes.
