The Spanish Property Crash
Along with corruption scandals and land grab issues, overdevelopment and oversupply have been two key factors in Spain’s property crisis.
After the recent property crash, many buyers now have a negative view of investment property in Spain. Although, according to many experts the problems have been exaggerated, and that the “crash” is not necessarily a bad thing.
Mark Stucklin, spokesman for Spanishpropertyinsight.com points out that for the first time in years, Spain is a buyers market. Clearly, one simply has to focus on long-term price rises.
There’s still a number of excellent property investment opportunities in Spain. Spain’s lesser developed locations like Costa Calida in Murcia now appear to be showing strong capital growth, according to Andrew Ward, managing director of Equity Property Portfolios.
The Canary Islands also remain strong with property sales still rising steadily.
Over the years buyers have made massive returns on investment in Spain. It’s long been a favourite with foreigners, UK nationals in particular. The sun, sea and laid back way of life are still as appealing as ever and will no doubt continue to draw prospective overseas buyers into the market.
Why Choose Spain
Spain has everything – sun, sea, beaches, snow, mountains, culture, art, nightlife, cuisine, architecture, music, sports and a fantastically diverse landscape with a fascinating variety of indigenous flora and fauna.
Spain has one of the most laid back lifestyles in Europe. It also has very low mortgage rates – the lowest in the European Union, after Finland.
Cheap flights
Unlike many new emerging markets (Australia, Barbados, Brazil, Cyprus, the Dominican Republic etc), Spain is very easy to get to. It’s just a few hours away from most UK airports and with the emergence of low-cost airlines getting here is now incredibly cheap – the number of flights continues to increase while the costs decrease.
A home away from home
In 2004, over 13 million British tourists visited Spain. Spain has always been a popular spot with the British, many of them eventually setting up home here. There are now well over half a million holiday homes in Spain owned by UK nationals.
Over the years, Spain has built up a huge European ex-pat community of English, German, Dutch French, and Irish along with many other nationalities. It’s not just a “holiday hot spot” anymore; it’s a real place to live.
Investing in property in Spain
There are numerous English-speaking agents both on the mainland and on the Canary and Balearic Islands that can help you find your dream home or lucrative investment.
The internet is also an excellent source of information. Diasoleadoinvest.com are one of the leading specialists when it comes to investment property in Spain and worldwide. Based in Spain, they have an in-depth knowledge of the local market and can provide inside information on the latest upcoming areas set to provide greatest return on investment.
Buyer’s guide
If you’re looking for a mortgage in Spain you’ll be offered 70% of the purchase price of the property. It’s highly advisable to get a Residence Card as soon as possible. With this you’ll be offered a loan of 80%.
Before buying a property in Spain or on the Canary Islands, you should get legal advice and representation. Choose a local, English speaking, Spanish lawyer. The fee is usually between 1200 to 1500 euros.
Buying a home on Spain is simple and easy. You’ll find that most of the real estate agents can provide advice in all major European languages. Mortgages are readily available and there are plenty of new developments, off plan and buy to let opportunities.