Monday, 24 March 2014

Investing in Spain is now the right time

Recent activity and articles written by publications who analyze economic situations suggest that those in the know are looking seriously at Spain’s property market again.

Whilst as pointed out in the This Week article the pundits do differ in their advice some seasoned and well known names involved in the riskier end of investments have started to put money into property backed funds and trusts in Spain.

The most well known of these include George Soros and John Paulson both of whom have been known on more than one occasion to back situations when the rest of the World is racing off in the other direction. This included the George Soros punt against the pound back in 1992 and the John Paulson bet against the sub prime market in the USA.  

What has changed in Spain.

Economically there are signs that Spain is recovering from its double dip recession. Whilst the national market remains subdued due to high unemployment, exports are up and productivity is high.

Spanish property prices have fallen on average by over 30% since their peak and in some areas this is as high as 70%. Even the most cautious of the pundits see prices stabilizing by end of 2015.

Is the upturn across all of Spain.

The highest levels of activity for buyers in Spain seems to be coming from the quality end and is focused on areas like Mallorca and better parts of Costa del Sol. Other areas which will not attract the wealthier buyers like Murcia whilst still struggling on over supply have starting prices in the region of € 40k for small apartments.

Legal issues surrounding buyer protection well reported from the past have been ratified and buying in Spain is now safe and secure as long as the right advice is taken. 

Spanish Mortgages

Credit in 2014 is more accessible than in previous years as Banks have cleaned up their balance sheets and are looking after years of net outflows to rebuild their mortgage books.

New Spanish mortgage product has been launched, focused on the higher net wealth clients and Northern Europeans particularly Scandinavians and Swiss.

UK applicants with the right profile will also find gaining a loan in Spain more readily available than in 2013. 

Read the full article: Investing In Spanish property

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