I am going to leave Statistics to the Statisticians and concentrate on what the statistics don´t tell you about the Spanish Property Market for 2011.

To be reading this you must have at least a passing interest in Spain and Spanish property. Why wouldn’t you, it is a beautiful country steeped in history, art and culture. The food is great and the people are warm and hospitable. You can find it all. The country has everything from large cosmopolitan cites to sandy beaches and high mountain ski resorts.

Yes, I am a Fan! I am going to look at whether to buy a property in Spain from the perspective of a British property buyer, basically because I am one myself.

Buying with a Mortgage

Well I think that this covers a large number of us when we look to buy a property.

In Spain right now you can obtain up to a 100% mortgage for the purchase of new build Spanish Property direct from major Spanish Banks and lending institutions. You won´t find that in the U.K. , if you can let me know where!

This might at first glance seem like Lunacy, on behalf of the Spanish Banks and on the part of you the potential buyer!!
Surely careless lending and high loan to value mortgages were part of the cause and effect that led to the worldwide property and financial crisis!?

Yes all that is true but, and it is a big but, What needs to be observed is that:

* The Spanish Property Market has undergone a significant downward adjustment in prices and is in my opinion Property Prices are bottoming out, certainly for the better properties.

* Availability of Mortgage Finance up to 100% as the Spanish Banks look to sell their New Build Property Stocks. So what appears to be Lunacy and a lack of short term memory is in fact a pragmatic approach to the Spanish Banks problem of having to take possession from Spanish Property Developers of large numbers of developments and in turn sell them. So with UK mortgages requiring ever bigger deposits someone looking for a property investment you can enjoy for years to come Spain is a compelling proposition.

* The maxim of Location, Location, Location is to be paired with Timing, Timing, Timing! The best properties will sell first so waiting to the last minute will leave you with what is NOT WANTED

You need to consider that even if in the short term prices fell a few percentage points the opportunity that exists for you to secure that Spanish Home is at hand because as any British property buyer will tell you 100% mortgages do not exist and certainly not on new build properties. Combine this with record low interest rates and low prices a smart new Spanish home has become a realistic affordable option for you!

Buying with Cash

Cash as ever is King so no need to drum on about that, what is good to know is that if you are buying with cash you have a window of opportunity to extract a further price reduction, perhaps not the headline grabbing kind of 2010 but Banks are willing to enter sensible negotiations for serious cash buyers.

If “That” is the question What is the Answer

Spain is a definite buy for me with all it offers combined with up to 100% mortgage finance available and properties from city apartments, beach, mountain and country homes. I have been looking at coastal properties with pools and near beaches for as little as €65,000 I don´t think opportunities like these will be around forever and judging by the rate Spanish buyers are purchasing I sense the best buys will continue to sell well in 2011.

British buyers who like property as a medium to long term investment and are fed up with the British Banks and Mortgage Companies inflexibility regarding lending should take a serious look at Spain where there are many second home opportunities and rental investments. I also feel that savvy first time buyers who are saving for deposits could look to make an investment in Span taking advantage of the ability to borrow and use a Spanish property to form part of their plan to build a deposit over a 3 to 5 year period and have all the enjoyment of owning a home in Spain with easy access via low cost airlines. Renting the property out during the periods it is not in use should in my opinion contribute to the cost of the mortgage.

In conclusion 2011 is a year of opportunity for Spanish Property Buyers, I certainly will be looking to take advantage of these favourable conditions for buyers.

Written by Robert Evans, Manager Basico Homes UK a Division of Basico Homes Gestion SL Spain

Find the interview in spanish here: ¿Comprar vivienda en España?
robert.evans@basicohomes.com
BasicoHomes UK
twitter.com/evansbasico

Author : Robert Evans

 

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