One Spanish market commentator thinks that anyone seeking a new home in the country should seize the moment
Is this the right time to buy in Spain? T
here are plenty of cheap properties up for grabs in Spain, but ongoing uncertainty about whether the country will leave the
euro, and news about the property crash and ailing banks, can be enough to worry the most determined buyer. Are prices going to drop further, and
is the country as stable as its governing politicians claim? Well, perhaps the fi rst thing to
understand is that much of the news about the property crash in Spain has been largely inaccurate for years. Between the “white noise’” of vested interests in the property industry and the Spanish government, it has been diffi cult for buyers to work out accurately what has been going on. A good example has been
I have seen prices of some properties in Spain where the price reduction has been up to 70 per cent. However, these invariably have been bank repossession properties, and houses or fl ats that few foreigners, justifi ably, would want (on the busy outskirts of town, without a lift, on ghost estates and so on). That said, on a general basis, I suspect
that prices in Spain will fall by another 10 per cent before stabilising. However, in many cases, prices are now
touching on, or below, those required to actually build the property concerned in the fi rst place. So, real value for money is undoubtedly there for the taking, particularly if the property is fully legal, with no further
of when to buy in Spain touches on life itself, and, without wishing to be too bleak, time is one thing that few of us have to excess. Indeed, putting your life in limbo, while you wait for economies to recover, is far from welcome, particularly if you have been waiting for years to retire to Spain, and for a new and fulfi lling way of life. In fact, put off buying property in Spain
for too long and you could fi nd that several precious years have passed, during which you could have thrilled to a quality of life that you never thought possible. That is a call only you can make, but I
“Put off buying property in Spain for too long and you could fi nd that
the Spanish government’s consistently ludicrous claims that property prices since 2007 have dropped by no more than around 18 per cent. This is palpable nonsense, as anyone in the Spanish property industry knows. The reality is that average property prices have already fallen by 40 to 50 per cent. The true size of the existing fall in prices
know that I would risk at least 10 per cent of my money if it meant that I had a few superb years – time spent where I wanted to be, doing what I wanted to do. But I would be a very careful
several precious years have passed, during which you could have thrilled to a quality of life that you never thought possible”
is important to realise, because every so often an “authoritative” report appears in the media stating that property prices in Spain are likely to fall another 20-30 per cent. However, this fi gure is invariably based upon foreign analysts believing the Spanish government’s fi gure of an existing drop of only 18 per cent and then adding on their anticipated 20+ per cent drop (bringing their expected decline in prices in line with the existing fall of 40-50 per cent). The question remains, however, whether Spanish property prices will fall further? In some cases, they already have and
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liabilities and in a prime location. More problematic, for any potential buyer of Spanish property, is what will happen with the euro and any possible exit from it by Spain. It is a brave person who predicts the future in this regard, but the chances are pretty good that the country will not leave the euro. Prices are likely to fall further but probably
not by much on quality, prime-location properties, and you can guard against any further drop by negotiating very hard on any property you wish to buy. Indeed, if you manage to get the price down by 10 per cent then you will probably buffer yourself against any further drop in the market. On a more philosophical level, the question
buyer and I would ensure that I negotiated hard on a quality property in a top location. I would also make sure that I “under-bought”, so that I had money left over to protect me should matters deteriorate. Furthermore, I would appreciate that I was buying not to make money but to
change my life for the better by moving to a country with a glorious culture, terrifi c weather, great outdoor activities and a kindly, nuclear society. I would focus on what Spain could offer
me now in terms of its way of life, rather than watch my life slip by, while being obsessed with property values.
Nick Snelling is the author of “How to Buy Spanish Property and Move to Spain – Safely”, and runs the information site
www.culturespain.com
OPINION
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