My advice is not to buy in Spain at all, the property market there is an utter shambles, with over a million unsold units all over the country and on the Costas. Recovery of prices to the levels seen 10 years ago will not happen in a decade or two. Realistic book values for many units I might say tongue in cheek, is realistically zero due to sheer lack of buyers. Check on the properties people are now trying to resell currently and make enquiries how long they have been hanging in the market.
Some pessimistic analysts believe another 35% may come off current asking prices, and in an article in April this year the FT suggested 45% had already been wiped of values over the last few years.
A friend of mine off loaded all his investment properties in Spain in 2003, a very wise move, but he could see a massive property bubble of new speculative golf developments were exceeding any sensible future demand.
Friends of mine bought in Murcia, as an investment, not a one rental in over 2 years, they lost £15,000 on a sale plus maintenance over the period of ownership, only used it themselves twice for short breaks and used the golf course just twice. Many of the developments which were started will never be completed, and most of the time they are ghost towns. Other elderly friends who took up permanent abode in Spain now want to go back to the UK cannot sell, and they can no longer afford to buy back in the UK.
If you are going to live at Corvera for many weeks in a year or for good, like playing golf a lot and willing to take a risk that selling in the next decade will mean a loss on the deal, even at the current so-called bargain purchase prices, then go ahead. I should retain your main abode elsewhere to retreat to in case of need.
When I retired 21 years ago we looked at buying in rural southern France and in rural Spain, not the ghastly over developed Costas, we decided in the end we did not want to visit the places we considered owning time and again, far too boring, and we just rented very high class villas and apartments, year on year. A far cheaper option and much less hassle than owning a place abroad.
I worked in the property field at one time for a company, with an extensive property portfolia in the UK and abroad so I have experience in the sector. But each to his own decision as ever, just my informed views expressed, others will have theirs that run counter to mine. Do your own research and take independent advice from someone with no interest in the development.
Just type "Spain Property Crash" in Google and read the press reports on the glut of unsold properties, if you go for Corvera try a cheeky low offer if it gets accepted or they make a slightly lower discount price offer on what they are asking now, turn away.
MP
This message was last edited by MP on 01/12/2012.
This message was last edited by MP on 01/12/2012.
This message was last edited by MP on 01/12/2012.
This message was last edited by MP on 01/12/2012.