Got your attention? Well I just made it up, like many of the newspaper editors hawking their doom and gloom propaganda.
Headlines get readers and sell newspapers. If you don’t believe me consider if you’d have read this article if my headline had been “nothing to worry about for sensible people”.
The headline isn’t always the full story.
All you read in the press at the moment is that housing prices are falling, mortgage rates are going up, developers are going out of business, houses are being demolished, the doom has no end.
Should you wait to buy in Spain? Well it really depends upon why you’re buying in the first place.
Take my mother-in-law (please!) she thinks she wants to live in Murcia and she wants to do it this year. She won’t be waiting for the house prices to “bottom out” or the market to slump. She’ll find what she likes, at a budget she can afford and live where she wants to live. She’s not looking for an investment for her money, she’s looking for an investment for her life.
Debbie's 5 Tips for Spanish Property Buyers
1. Do Your Homework
Ignore the sensational headlines and TV scare stories designed to boost ratings. Most of these only show half of the picture anyway. Take responsibility for finding out the facts firsthand and you'll be surprised to see plenty of good investments and solid long term buys at good prices. The best thing you can do is arrange your own viewing trip. But first be sure to consult balanced guidebooks, fact-based reports and websites to hone in on your desired area.
2. Take Your Time
There is a lot of property out there at the moment and in the short term growth isn't going to be as rapid as we've seen over the last decade. That means you can afford to take your time and brush off any pressure agents or vendors may try to put you under.
3. Always Offer Less
Some of the larger resorts and urbanisations have a serious oversupply of property in relation to the number of buyers right now. This means you are in a strong buying position and you should expect them to lower their prices. That said it's probably safer to avoid some new-build projects altogether - which takes me back to tip 1 - do your homework!
4. Buy Where Property Will Remain Scarce
Traditional townhouses in historic old towns and fincas near pretty villages will always be in limited supply. So seriously consider these as viable, more affordable and unique investments to the traditional identikit villa on a golf course with a pool.
5. Decide Why You're Buying
If you want fast capital gains as have been seen in the recent past then Spain isn't really the best bet right now as there are better deals to be had in less mature emerging markets such as Poland, Romania and Bulgaria. However, if you want to buy to live or as a long term/retirement investment then buying in a stable, mature country with predictable long term growth, lovely people and a solid infrastructure is a good idea.
The difference between lifestyle buyers and property investors may be huge. Remember this when you next see the headlines, are they talking to you or the guy who was driving a Hummer last year and this year he’s downgraded to just a Land Rover?
The market might be getting tougher for the property investor, but it could also be getting sweeter for sensible people like me and you!
RESOURCES
Debbie Jenkins is co-author of “Going Native in Murcia” and author of
“Buying Property in Murcia”. Find out more at www.nativespain.com/diary/debsjenkins
Going Native in Murcia (first edition - now out of print) www.amazon.co.uk/exec/obidos/ASIN/0954568141
Going Native in Murcia (second edition) www.amazon.co.uk/exec/obidos/ASIN/1905430213
Buying Property in Murica: www.amazon.co.uk/exec/obidos/ASIN/1905430299
Publisher's Website: www.bookshaker.com
NativeSpain Community: www.nativespain.com
