The property market in Spain is literally on its knees. Sellers are willing to accept the cheeky offers they would not have even considered back in the boom years. This is the case even in popular resorts like Marbella...
(PRWEB UK) 19 October 2012
However despite this latest gloomy news, Loxley McKenzie, Managing Director of Colordarcy, commented, “I would like to allay some of those fears about investing in Spanish property and say that now is quite possibly the best time to take a leap and invest, while others who are less brave are just happy to watch from the sidelines.
Now this is not to say that I am expecting a sudden increase in Spanish property prices and a reversal of the destructive declines in value we have seen since 2007. It just isn’t going to happen in the short term.
In the long term however, investing at today’s prices means that investors are likely to see the value of their investment grow when the market recovers and they can also benefit from 100% finance and other incentives put forward by developers to tempt buyers.”
According to Colordarcy, if investors are considering Spain at the moment, they might be wondering if this market has further to fall. There are of course no guarantees that there will not be further falls through the autumn and winter months, however as soon as the oversupply of property has been absorbed it is a safe bet that stability will return.
Ratings agency Standard and Poors have just dealt Spain another heavy blow by downgrading its bonds by another two notches to BBB- which is just above a junk-debt ratings.
McKenzie added, “The property market in Spain is literally on its knees. Sellers are willing to accept the cheeky offers they would not have even considered back in the boom years. This is the case even in popular resorts like Marbella, where developers are offering properties at 70% below launch prices with 100% finance.
This makes Spanish property less of a risk than it has ever been. Investors can use very little of their own money and benefit from falling prices and the falling Euro. Even if the Euro plummets or the worst happens and Spain leaves the Euro, (and this is unlikely) the value of mortgage debt will also be reduced.
Overseas mortgage specialist, Conti saw a 33% rise in enquiries from people looking to invest in a home abroad in September, with Spain still featuring in the list of hot spots. According to Colordarcy, this goes some way to confirming that there are plenty of people who are still willing to take a leap and risk investing in Spanish property.
Notes to the editor:
Colordarcy is a leading property investment company that specialises in finding positive cash flow investment properties worldwide. Colordarcy investment property portfolio includes some of the best properties for sale in Brazil, Florida, Turkey and the United Kingdom.
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