Interview with Our Principal Representative in the Balearics, Karina Borg-Olivier

With our global reach continuing to grow, we’ve appointed a new Principal Representative in the Balearic Islands, Karina Borg-Olivier. With an impressive background in the high net worth property market, Karina has an enviable network of contacts across the globe. We’re delighted to have her on the team and wanted to give you the opportunity to get to know her.

What did you do before Enness?

Prior to joining Enness, I worked as an Associate Director for a reputable property search agent based in Mayfair.

Why did you join Enness?

I joined Enness because I saw a gap in the market for a high-end mortgage provider that could work with complex clients in a challenging environment such as the Balearic Islands. I had already built a successful relationship with Enness over a number of years, having referred clients to the team and seen the exceptional service they provided. It therefore seemed like the perfect collaboration. I am currently 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 are unable to secure the required funding due to local banking bureaucracy and their complex international financial structures.

How is the Ibiza property market at the moment?

There is stable demand among international buyers, who are still looking for properties up to €2 million. Overall, the market has been affected by slower conditions in major cities around the world, as well as the uncertainty surrounding Brexit.

Who buys there?

Until now, buyers have been predominantly British, Scandinavian, German, Italian and French. This has been changing recently, with some British buyers holding back due to uncertainty in the UK. In addition, the UAE has seen an influx of buyers interested in securing a property in Ibiza.

What are the main challenges in the market?

The main challenges are the lack of desirable properties, obtaining local funding, and navigating planning and legal issues. These factors can make the process of bringing properties up to the standard buyers expect for the prices they are paying slow and complicated. The fact that both buyers and sellers are often travelling can also slow down the process.

In addition, the cost of buying is between 10% and 12% once taxes, legal fees and other costs are taken into account, so decisions to buy are not taken lightly. There is also no public record of achieved sales prices, making it difficult to assess values using the price-per-square-foot approach that many buyers are accustomed to. As a result, vendors can sometimes list properties at unrealistic prices in the hope of achieving them from purchasers buying based on emotion.

Having said that, for those who have patience and are aware of the challenges upfront, there are some incredible opportunities around, particularly with the right team and funding in place.

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:

• Maximum loan-to-value: 70%
• Rate: 0.8% per month, paid monthly, retained, or part retained
• Term: 6 months to 3 years
• Arrangement fee: 2% of the loan amount

For any other enquiries, please contact us at info@enness.co.uk or call +44 (0)20 3758 9393.