Despite all the tales of woe and strife in the press, Britons are still attracted by the Marbella sunshine and the lure of falling property prices and requests for overseas mortgages are again on the increase. This is despite appraisal company TINSA showing that Spanish property values in general were down by nearly 11 per cent year on year from 2011, and it’s more than likely that we’ll see another 10 per cent drop again this year.
The Spanish (and in particular some areas of Marbella) Property market is close to bottoming out and buyers are using this to search out a bargain. With the value of the pound against the euro slowing but surely regaining strength, relatively low interest rates and competitive mortgage deals to be found, owning a Spanish holiday home is becoming attractive again. Of course the historical short summers experienced in in the UK are also playing a part – Brits know that they can get virtually guaranteed warmth and sunshine by hopping onto a low-cost airline flight to a huge variety of airports in Spain.
The debate as to whether or not one should buy in Spain will continue to be a ‘heated’ one. Many Brits who bought in 2005/2006 are looking to bail out as they’re unable to keep up with their mortgage payments and logically this market has put them into negative equity and they are going to take a hard hit. However, if a buyer is looking for a LONG TERM investment and not a ‘quick flip’ then it’s a great time to buy a holiday or retirement home.
It isn’t rocket science. Buying a property in the UK would never happen without the purchaser appointing a trusted and knowledgeable lawyer, getting good surveys and independent valuations done. It is no different in Spain. There are many fluent english-speaking lawyers in Spain and recommendation from neighbours or expat forums is a good place to start.
There is a glut of ‘cheap’ properties on offer in Spain at the moment, but the reason for their ridiculously low price is often because they have been repossessed by the bank or the developers are desperate to get them off their books. And while the general consensus in the UK seems to be that property can be begged many Spanish owners aren’t as desperate as one may think.
Because the area is dominated by tourism, a Marbella property owner can rent out for a few months in the summer and it will cover the costs for the remainder of the year. Be warned, there is usually a reason that some properties stick around and they could well be one of the approximately 300,000 homes in Spain that are unlicenced, do not have correct planning permission or even no connection to utilities such as electricity, water and gas.
The question of why is the property so cheap must always be thoroughly investigated. An overzealous salesman looking for his next commission deal may not necessarily give you the whole truth, but rest assured that there are still some good safe best investments out there.