Interview with our Principal Representative in The Balearics, Karina Borg-Olivier

With our global reach ever-growing, we’ve appointed a new Principal Representative in The Balearic Islands, Karina Borg-Olivier. With an impressive background in the high net worth property landscape, Karina has an enviable black book of contacts across the globe. We’re delighted to have her on the team and want you to get to know her.

 

What did you do before Enness?

Prior to joining Enness, I was working as a Associate Director for a reputable Property Search Agent based in Mayfair.

 

Why did you join Enness?

I joined Enness as I saw a gap in the  market for a high end mortgage provider who was able to deal with complex clientele in a tricky environment, the Balearic Islands.  I have have had a successful relationship with Enness for a number of years, having referred my clients which they provided an exceptional service to, so it seems like the perfect collaboration.  Currently I am based between the Balearics and the UK.

 

What is your role?

My role as Principal Representative for the Balearic Islands is to bring new business from the Balearics to Enness .  There are many potential clients in Ibiza who are keen to buy a second home or commercial asset but who are unable to secure the required funding due to the local banks bureaucracy and their complex international financial setups.

 

How is the Ibiza property market at the moment?

There is stable growth amongst the international buyers who are still looking for properties up to 2Million Euros. Overall it has been affected by the slow markets in big cities around the world and of course the uncertainty of Brexit.

 

Who buys there?

Until now it has been predominantly British, Scandinavian, German, Italian and French. That has been changing recently with the main English buyers holding back due to uncertainties back home. In addition the UAE has seen an influx of buyers interested in securing a piece of paradise.

 

What are the main challenges in the market?

The main challenges are the lack of desirable properties, obtaining local funding, planning and legal issues which make it slow and complicated to get the properties to the level they expect for the money they are paying. The fact that both buyers and sellers are often travelling also slows down the process.  In addition to this the cost to buy is between 10-12% taking taxes, legal etc into account so decisions to buy are not taken lightly.   There is also no public record of sales prices achieved so it is difficult to work out values based on a sales structure which many buyers are used to such as price per square foot. So often vendors put their properties on for unrealistic prices in the hope of achieving them at some point from purchaser buying based on emotion.   Having said that, for those who have patience and are aware of the challenges upfront,  with the right team behind them and funding in place there are some incredible opportunities around.

 

What are the best products currently available for those looking to purchase in The Balearics?

 

Best purchase mortgage rates over 10 and 15 years:
  • Fixed for 10 years at 1.75%
  • Fixed for 15 years at 1.95%

 

Best purchase mortgage rates over 20 years:
  • Fixed for 20 years at 2.20%

 

Best property developer finance option:
  • Max loan-to-value: 70%
  • Rate: 0.8% per month (paid monthly, retained, or part retained)
  • Term: 6 months – 3 years
  • Arrangement fee: 2% of the loan amount

 

To contact Karina, message her here.

For any other enquiries, please contact us at info@enness.co.uk or call tel:+44(0)2037589393

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