To say that the Spanish property market has experienced a turbulent few years would be a bit of an understatement. The unfortunate mix of the global economic downturn, over-development, and high unemployment has led to plummeting prices, particularly with new coastal homes and older properties in inland ‘white villages’ popular with the British.
Due to various reports of corruption at the highest levels of local government and the granting of illegal licenses for property development, it’s safe to say that more than a few prospective buyers have been put off.
As is often the way, pain for some means there is opportunity for others and investors looking for a bargain are therefore in a very strong position. Dramatically reduced prices and the opportunity to negotiate these down even further with some motivated sellers mean that it’s most certainly a buyers’ market.
This may well explain why the percentage of people enquiring about Spanish mortgages has started to creep back up. Spain currently accounts for almost a third of enquiries we receive, up by eleven per cent since 2009.
Taylor Wimpey de España has seen a 100 per cent jump in the volume of sales completed by British buyers in the first three months of 2012, compared with the same period a year earlier. It appears, therefore, that our affections for this country show no signs of waning.
The British embassy says buyers should exercise extreme caution if an estate agent, promoter or lawyer urges them to cut corners to save money or time. It’s absolutely right. It might be tempting to cut costs at the front end, especially when it comes to legal advice and paperwork, but this can lead to big problems further down the line.
It’s imperative for prospective buyers to seek the right advice. They should always go through the same process that they’d follow if they were buying a property in the UK, and take independent counsel from an English-speaking lawyer who is not connected to their seller, estate agent or property developer.
They should also be very selective. Many so-called bargains are being offered at cheap prices because they’re of poor quality and in undesirable locations. It’s very easy to be pulled in by descriptions of ‘knock down’ prices, but you really don’t want to end up with a toxic asset simply because you didn’t do your homework or consult the appropriate professionals.
For many people buying property in Spain, it’s a lifestyle choice, and they’re attracted by the climate, amenities and culture, rather than earning a prospective fortune on their home there. If people enjoy what Spain has to offer, property can be snapped up there on better terms than have been seen for years. As long as they treat their property purchase as an investment over the long term, they can still buy with confidence, if they buy wisely.
