Why buy in Spain?

[Goldberg Global]

Spanish market is in the doldrums, is it a time to buy, word on the street is that this is going to be flat or drop, if people want OR have to sell there are less buyers, for next 12 to 18 months possibly more the market may be flat. The bull market of 30 years has hit the wall, now we are seeing the aftermath.

We can all predict the future, but no one knows it. I think there is alot of better places to INVEST ones money, but SPAIN still gives a good climate, lifestyle and safe haven for those wishing to RETIRE, holiday home or go on holiday too.

[deedee1]

Hi all,

I agree Spains bubble is definately bursting- But I think that if you are still looking to buy in spain and are not relying on capital growth or to make a quick buck or rental income from it in the short/medium term then now or soon may be the time to buy!

Take advantage of the fall in prices and oversupply in the market as well as the people desperate to sell as you will still be able to negotiate even further!

See ya D

[rossmark68]

Hi
I bought in Bulgaria but some friends of mine purchased in Murcia on a complex. How much are you looking at now for an off plan 3 bedroom in Murcia?

[Goldberg Global]

I think you have to ask where in Murcia, and 3 bedroom, apartment, townhouse, villa. The question is too broad. Resale, new build. Inland or coastal. City or village. I would say probably from 150k euros upwards. I am sure there will be cheaper, but i am sure there is more expensive is like shooting into the sky.

[rossmark68]

Hi
It is in a gated complex 5 mins walk to the beach. 3 double bed apartment. 2nd floor of 3 I think. They paid £115,000 is this about right or can you now buy cheaper 3 beds off plan
cheers

[rossmark68]

forgot to add it was unfurnished, They bought last year, the apartment is now complete

[rowlandsbb]

I am both an agent [ UK Chartered Surveyor involved in overseas properties] and investor
In all markets at whatever level of activity there are good buys
And this still apllies to parts of Spain
I like Almeria between Aguilas and Mojacar but you still have to be selective
The new motorway has opened up and in due course there will be the Marina de Cope development so this relatively neglected area should progress
So if anyone is thinking about buying in Spain for holiday, part/full time living they should not be but off by the negative pundits
Just as it is the case in UK ,medium to long term, in the right locations today's prices will turn out to be a good buy
And you have the bonus of a great life style and weather

[Mariab]

The crisis in the real estate sectr in Spain has arrived. The truth is that prices are not dropping they are readjusting. What does it mean?. For example, an apartment that was bought 15 years ago for 80.000€ last year was for sale for 250.000€ (let say it has 2 beds, near beach and garage). The owners are willing to sale it in 2007 for 200.000€. Thay still make a profit, and it is good investment opportunity as the prices will keep on rising but 4% per year instead of 12%.

[rowlandsbb]

In reality it was probably not the value last year just a figure picked out of the air in hope that values would still increase as previous rates
So the re adjustment is perhaps to owners expectations,
But certainly over priced developments perhaps in poor locations are not selling at anticipated prices and there are some good re sales you can pick up
The market is just slow....bit like UK!

[Gerry Pridham]

I think there are going to be some great bargains in Spain in 2008, as I do think also in the UK.

I know from talking to the banks that repossessions are increasing quite quickly during 2007.

Personally, I'm making friends with the lawyers, bankers and their repossession contacts, and expect to take a punt on some selected opportunities.

An agent told me on my last trip that anything above the €150K mark is going to be really hard to shift. I'm a bit of a cheapskate, and buy at the bottom end of the market both in the UK and Spain (for investment, not living in). The rationale in both markets is the same. Can long term rentals sustain borrowing costs? In both markets, I see many opportunities to effectively borrow nearly 100% of funding costs, and still get the opportunity to cover all outgoing costs.

My target in 2008 is to buy gross value of £800K in the UK (about 10 properties) and about gross value £300K in Spain (about six properties). The challenge is to get them all at effectively No Money Down, though I'm not unrealistic. If the % BMV is high enough, I'll invest.