With prices having fallen significantly in most parts of Spain, and the Spanish government slashing the costs of buying, now could be the time to buy in Spain.
Investment expert, Marc Armando Tomas, advises that it would be wise to snap up one of the many bargains on offer now, rather than waiting for further falls. Property prices are now 20% below their 2007 peak, and buyers can expect discounts of the same amount on asking prices. However, those who know the market well, such as Taylor Wimpey Espana, and others, are predicting that prices may begin to rise again in 2012. Even if the market does not rise this year, it is unlikely that it will continue to fall.
Where and What to Buy
Spain is a diverse country with a wide range of property on offer. The safest investments are generally those in well-established locations with good rental yields. Many of the popular coastal resorts have seen bigger price falls than those in the rest of the country, and may continue to fall.
However, having a secure rental income means that you can protect yourself against any further falls. Cheap holiday prices and the falling cost of living in Spain means that it may start to attract more British tourists, according to Post Office Travel. With recession-hit families unable to afford long-haul destinations, the market for cheap holidays may grow this year. That’s good news for anyone looking to buy property in Spain.
What to be Aware of
When choosing a resort to buy in, check local prices for rentals and try to spot market trends. Also look for property that will offer something to more than one demographic. So, a property in a coastal resort which is also close to a major city or cultural attractions is likely to draw more interest than a property which just ticks the beach resort box. Also, make sure you have good overseas property insurance which includes cover for loss of rental income to keep your investment safe.