Now is a great time to invest in quality well located properties on the Costa del Sol.

Location has never been more important, 95% of all the properties selling here are within 10 minutes walk of the beach and all amenities in good areas like Mijas Costa and Marbella, properties away from the prime locations are not moving, and they represent the vast majority of available properties.

Apart from the location, low quality, high density apartments should be avoided, there are far too many, especially 2 bed units, built to supply the demand of off plan resale speculators earlier in this decade, it will take many years for these apartments to increase in value, so no point in buying them now.

Due to low mortgage interest rates, and good holiday rental demand many good quality well located properties remain overpriced, most owners are not motivated to sell at current levels. However due to various circumstances, business problems, health problems, re-location there are some resale bargains at 20% to 30% below previous levels.

There are 2 major MLS network databases for resale Costa del Sol Property 1. properties-spain.com and 2. property-spain.net/search.aspx

Financing property purchases from Spanish banks, has eased a little, but the banks run strict credit checks and are very fussy about the non residents they lend to, and how much they lend.

Down valuing property to suit the amount they want to lend is still common practise. Interest rates offered to non residents are still generally higher than those offered to residents. More information on costa del sol mortgages is available.

The easiest way to obtain a mortgage with good terms at low cost is to take over an existing mortgage. A number of quality developments in prime locations have reduced the prices of the few remaining units by up to 30%, the existing mortgages can be taken over at up to 80% of the purchase price at EURIBOR +1% But even then you will need to find the 20%, plus the purchase costs, which on new properties now subject to 8% IVA [VAT] are around 11% in total. These properties are selling very well, mainly to Scandinavian clients; the current situation is very similar in this respect to when I came here at towards the end of the last crisis in 1993.

For more information about safely buying, and the cost of ownership see this Costa del Sol Property buyers guide

There are some developers and banks who are offering 100% mortgages on some developments, but the qualities and locations are generally inferior and over priced by as much as 20% against private sales in the same areas. Mostly because of the difficulties with financing, the vast majority of sales completed in 2010 have been in the price range up to 350,000 euro. Therefore there are more real bargains in larger properties, especially detached villas with private swimming pools in the 800,000 to 2 million euro price range, where up to 50% reductions can be found.