1969 apartment in Villa Verde, Madrid, sells for 800,000 euros
A 1969 apartment with no garage or storage room has sold for 800,000 euros in Villa Verde, Madrid. With renovation and taxes, it tops one million. Where is the ceiling?
English · Original discussion in Spanish · Published
A 1969 apartment in Villa Verde: 800,000 euros with no garage or renovation
Old housing no longer needs to be new to command new-build prices. A 1969 apartment in Villa Verde, with a small elevator, three bedrooms, between 70 and 80 square meters of usable space, and no garage, storage room or garden, has sold for 800,000 euros. The deal, recounted by a relative of the seller, comes with a warning usually buried in the fine print: the property needs a full renovation costing between 80,000 and 100,000 euros.
From 800,000 to over a million: the real cost
With taxes and notary fees, the 800,000 becomes 900,000. Add the renovation and the outlay reaches one million. And if the buyer takes out a bank loan, the final bill can shoot up to 1.2 or 1.3 million.
Those who find this outrageous are met with another reading of the market: in run-down areas, an apartment costs around 500,000 euros; where the surroundings are problem-free, the figure approaches one and a half million. The price is no longer set by the building, but by the neighborhood.
The retiree who hides nothing
The owner, a former union representative at the PSA plant in Villaverde with a maximum pension, boasts without embarrassment: at 70, he has sold the apartment within weeks and plans a 21-day cruise to Argentina and Chile, at 10,000 euros per person. The alucinación, 20,000 euros in total, is paid for with a sale that skeptics call a bubble and optimists an investment that could triple in ten years. Meanwhile, the market keeps turning: some already expect the next victim to pay one million for a house untouched since 1969.
Old housing no longer needs to be new to command new-build prices. A 1969 apartment in Villa Verde, with a small elevator, three bedrooms, between 70 and 80 square meters of usable space, and no garage, storage room or garden, has sold for 800,000 euros. The deal, recounted by a relative of the seller, comes with a warning usually buried in the fine print: the property needs a full renovation costing between 80,000 and 100,000 euros.
From 800,000 to over a million: the real cost
With taxes and notary fees, the 800,000 becomes 900,000. Add the renovation and the outlay reaches one million. And if the buyer takes out a bank loan, the final bill can shoot up to 1.2 or 1.3 million.
- Sale price: 800,000 euros.
- With taxes and notary: 900,000 euros.
- With full renovation: 1,000,000 euros.
- With financing: up to 1,300,000 euros.
Those who find this outrageous are met with another reading of the market: in run-down areas, an apartment costs around 500,000 euros; where the surroundings are problem-free, the figure approaches one and a half million. The price is no longer set by the building, but by the neighborhood.
The retiree who hides nothing
The owner, a former union representative at the PSA plant in Villaverde with a maximum pension, boasts without embarrassment: at 70, he has sold the apartment within weeks and plans a 21-day cruise to Argentina and Chile, at 10,000 euros per person. The alucinación, 20,000 euros in total, is paid for with a sale that skeptics call a bubble and optimists an investment that could triple in ten years. Meanwhile, the market keeps turning: some already expect the next victim to pay one million for a house untouched since 1969.
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Summary of a discussion on Burbuja.info - Foro de economía, actualidad y política., translated from Spanish and reviewed before publication. Read the full discussion (38 replies).
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