Spain is still one of the top choices with Britons who would love to escape to the sun. It’s so close to the UK, so easily accessible with cheap flight airlines servicing the main tourism airports well, it has an enviable climate, there are already plenty of Brits living in Spain…and all in all, Spain ticks so many boxes for would-be retirees and expatriates that its appeal is not diminishing.
However, the Spanish property market is in a bit of a mess right now, understatement), and it has been for well over a year. This has had the effect of putting many off their dream of a move to Spain, but in our opinion at Degtev it really needn’t.
Our advice to you is ‘don’t give up your Spanish property dream,’ because there are motivated sellers out there willing to discount their property well below market value, so that even though the pound has crashed against the euro, you can still find a bargain home.
Ironically, the most motivated sellers of Spanish property seem to be those who bought right at the peak in 2007, when one pound bought you 1.45 euro. These sellers are not only losing out by the very fact that the value of their home has slumped since 2007, but because the value of the pound has slumped massively against the euro in the same period. However, according to Kyero.com, these vendors can still discount their property and break even in sterling terms because the discrepancy between what the pound was worth then and what it’s worth now is around about 26%.
For anyone hoping to find a way into the Spanish property market this is all good news. It means that there is plenty of room for strong negotiation with anyone who has a house for sale in Spain. And there are plenty who are getting out of Spain because they hadn’t factored in the demise of the pound when they retired to live on a sterling based income. What’s more, the main house builders in Spain are desperate to off load completed stock and reap any form of return from doing so. Cash flow is what’s important to these builders at this time – and so if you have the cash, you’re in a strong position to bag yourself a bargain.
We wouldn’t advocate buying anything off plan at the moment however, and as always when buying a home overseas, it is imperative to buy with the help of a reputable solicitor. You need to ensure anything you’re buying does not have unpaid debts against it as you could become liable for them. Also, if you are buying a completed new property off a developer on an incomplete development, think long and hard about what you would do if it ever got to the point where the development is never finished.
Those who will do well out of the Spanish property market right now will be hard negotiators who take the emotional out of their purchase. They will also be astute and savvy and do the necessary research into the property they are buying and the person they are buying from to ensure that all is in order with the purchase. If this sounds like you and you have the cash and the incentive to buy in Spain, we would say that you should really go and take a closer look at the market – there are bargains to be had.