Is Spanish Property a Good Investment?

31/05/2014

Are you thinking of buying Spanish Property as an investment? You are not alone in asking - is now the right time to buy Spanish property? It has been well publicised in the press in recent years that a large housing overstock and a weak Spanish economy means that there are some great cheap Spanish property deals to be had – but is now the right time to buy and will my investment in Spanish property pay off?

The credit crunch that hit Spain showed the levels of oversupply of housing and villas in Spain and as a result the Spanish property market slumped to record lows. 2014 brings with it a much more positive approach in Spain, the Spanish government is working to revitalise investor confidence in its once booming housing stock and this confidence along with a growing economy in the UK is tempting Britons back to Spain looking for Spanish property bargains. Although confidence is growing in the property market in Spain, Britons are able to find great deals as Spanish property prices are slashed to help offload the oversupplied properties of previous years.

The UK has had a long and enduring love affair with the Spanish Coast, especially the Costa Blanca where beaches are long, the sea is clear and sparkling and the sun shines a warm smile onto the coast for over 300 days per year. Spanish holiday homes and Spanish retirement homes have long been the dream of many a UK holidaymaker and now it is looking like the right time to make that dream a reality for those looking for property in Spain. Spain’s authorities are keen to once again promote the Spanish lifestyle as Britons can fill the gap in the weak domestic market and make great investments in the cheap homes available at the moment. Spain’s government has even embarked on a series of roadshows in the UK to promote buying property in Spain. The market has reverted to pre-boom years and then some, and this reflects the need for banks and those developers who did not go bust in the credit crunch to offload their surplus housing stock.

To fund buying in Spain many British buyers borrow against their UK home if they need to raise money and with the UK economy growing this is becoming an option again for some British buyers especially with the low interest rates of the moment. Cash buyers and those who can arrange low cost mortgages to buy Spanish properties have the most to gain in this growing market. It is still possible to get a mortgage in Spain and a British speaking estate agent in Spain like www.dolphin-properties.com can give you advice and point you in the right direction but they are not as easy to get as they once were. New legislation is being agreed in Spain to deal with some of the previous difficulties of buying a property in Spain and steps are being taken to make buying a property in Spain a more straightforward path.

For example, the registry search on properties has been made available online and in English and can be viewed so that potential buyers have full access to ownership details enabling them to check the legalities of a property before they buy. The Spanish Embassy in London said “This is to promote access and knowledge of the legal aspect by foreign citizens interested in buying properties so that they know exactly what they buy and can do it from their own country,”

As ever with property, good research and independent financial advice are key to making a good property purchase wherever you are in the world. Spanish weather, food and lifestyle will always be attractive to Britons so if you have been thinking of moving to Spain, perhaps now is the time to buy your Spanish dream home at the cheapest prices in years.