Why You Should Buy Property in Spain Now
With the Spanish property market seemingly recovering from the property bubble that burst in 2008, it is a good time to buy investment property in the country. Recent data from the country’s Property Registrars showed that property prices in the country rose by 1.2% in the third quarter 2014 from the same period in 2013. Since this is the first time the property index has moved into positive territory since the start of the housing bust, analysts believe this is a signal that Spanish house prices are stabilizing and that it is a good time to start buying since prices will not be this low again until the next property boom-and-bust cycle, which might not happen again for decades.
The reason for such low prices is that banks are quickly trying to unload their stock of repossessed homes, many of which they have had on the books since the start of the crisis. Thus, the banks have written off enough of these properties’ value to be able to sell them at prices below replacement value. And they are desperate to unload them. There is even room to negotiate for further price discounts of as much as 10% or even more since banks are so poor at selling homes that they have to resort to deep discounting to move them.
One consequence of the flood of cheap properties is that there is little to no construction of new houses since there is an excess of supply. Thus, it seems that prices have nowhere to go but up for the long-term since the day will come when, once the stock of repossessed houses the banks hold is all sold off, there will be a housing shortage since no new construction is happening now.
There are many good reasons to buy a house in Spain, both for investment purposes and as a second residence. The country is seen as having one of the best qualities of life in Europe, and has a public health care system that is widely considered one of the best in the world. Hence, analysts recommend that investors take advantage of cheap prices now since they are unlikely to ever be this low again.
Content credit goes to Quintessenceltd, A UK based Property marketing Agency.