| Due to the economic climate we are accessing for | | | | los Pinos, a luxury finca in South West Mallorca close |
| clients an increasing number of distressed Mallorca | | | | to Andratx and a wonderful front line house near |
| property opportunities. These forced sale | | | | Porto Cristo. |
| opportunities offer investors the possibility of | | | | The key for buyers is the availability of funds for the |
| excellent long term returns or for lifestyle purchasers | | | | purchase as banks in Spain still have the lending tap |
| the chance to buy luxury Mallorca real estate at very | | | | firmly closed or at least loan to value ratios requiring |
| low prices. | | | | equity inputs of around 40%, after costs, for non |
| While we maintain that the Mallorca property market | | | | residents and 30% for residents. |
| and the wider national and international economic | | | | Although unlike the luxury market, where asking |
| backdrop remain "complicated" we feel that some | | | | prices are often far in excess of underlying values, |
| buying opportunities are emerging particularly where | | | | asking prices reflect the urgency for a sale, thorough |
| current owner have over leveraged, have cash flow | | | | market research and due diligence is still required as |
| difficulties and are coming under pressure from the | | | | not all forced sales are "cheap" especially where |
| banks. | | | | outstanding loans are in excess of the underlying |
| Amongst the opportunities now available in the | | | | value for the property. In these cases awaiting bank |
| market are - a spectacular 5* boutique hotel enjoying | | | | foreclosure may be the only option even if the |
| some of the best views in Mallorca; a luxury designer | | | | paperwork is that much more complicated. |
| villa in Pollensa, a house with sea views in Costa de | | | | |