Is 'now' the time to buy in Spain… is the wait finally over?

It’s a dumb idea and I struggle to understand, apart from the herd instinct and one upmanship why people do it. I have read one explanation is that they want a ‘home from home’. However holidays are precisely the opposite of that emotion. Holidays are supposed to be a different and more rewarding experience and a complete change from being ‘at home’ Also if you rent it to total stangers how can that still be a home?. It's a puzzle but each to their own I suppose.

I think of it more as a hobby. Some people take pleasure in an expensive car or designer clothes or an expensive sport. I take pleasure in a holiday home. It doesn't need to be an economically sound investement any more than the other examples are (not) sound investments. But it makes me happy. Is that not good enough as a reason.

Another positive indicator :

Property investment soars to €10.2bn in Spain, the highest since 2007 

PROPERTY investment in Spain reached a record high last year, totalling €10.2 billion - a figure that has only ever been beaten in 2007 when home prices were at their most inflated and before the end of the housing boom.

This puts Spain second from top for investment in bricks and mortar in Europe, just behind Sweden.

Marketing consultancy firm CBRE says this historic sum was mostly made up of property purchases in the last three months of 2014, which came to nearly €3.4bn - a rise of 50% on the same period in 2013.

http://www.eyeonspain.com/blogs/spainnews/14525/property-investment-soars-to-102bn-in-spain-the-highest-since-2007.aspx

We bought an apartment 10 years ago with the intention of moving over when we had retired. For many reasons that didn't happen and we decided to stay in the UK. We ended up coming out twice a year for 2 months at a time.We reckoned that the cost of running the home last year was around 1500e, community fees (560e) and electricity (400-500e) being the main costs, with the rest made up of IBI, insurance, non-resident tax and internet.

Obviously we had travelling costs as well. It may well have been the wrong decision to buy as we sold at a substantial loss at the end of last year but unfortunately we didn't have a crystal ball!

Hobby, yes that's a good explanation. An expensive one but I guess it's marginally more expensive than owning a boat or a race horse. Good point.

Property for me before the crisis was always a market investment tool that produced great returns and little else. I see property now only in terms of a home. One is enough for me.

Hobby, yes that's a good explanation. An expensive one but I guess it's marginally more expensive than owning a boat or a race horse. Good point.

These days, with very decent properties going for under 100K (or under 50K even if you're not too picky), Spanish properties are both cheaper to buy and cheaper to mainatin than expensive cars, let alone yachts or racehorses.

Personally I prefer good hotels. You have a worldwide choice and when you leave that's it. You don't have to pay the laundrybills 

Horses for courses! Thank goodness in all walks of life we are different, but why criticise another persons choice? Live and let live !  Each individual or marriage, partnership should be able to do what they want without being constantly told they have done the wrong thing, I prefer my own place to a hotel, but so what , I wouldn't then criticise somebody else if their preference is a hotel !!  

Constructive criticisim aids understanding. Often many people would not consider the negatives in holiday home ownership described in this thread only the positives. Improved understanding benefits everyone.

sox, you have said that you prefer your own place rather than a hotel, that didn't upset Mickyfinn one jot, even though he has stated that he prefers a hotel, let's not get like the football section, that appears to be inhabited with big daft kids, I don't have a large amount of money that I might not need for other things, eg; we have just bridged the difference between the purchase price and mortgage in respect of our son and his partner, who found the house of their dreams, when they manage to sell their apartment they will settle up with us, not everyones bag, but suits us.

Greek properties have lost well over half of their pre crash values, if they leave the EU it is estimated that they will further reduce by circa 75% of their current values. Spain is one of the PIGS economies, I don't like the idea of investing money in a high risk area, whose taxation system appers to mirror that of Dick Turpin.   

I still feel that unless you're sure of an area and can see yourself there in 10 years, then renting is a better option. I've rented several places and in a couple of cases managed to negotiate a rent decrease once I'd shown I was a good payer. However, many folk are saying the property market is now waking up. Although it's from an agent's pov, this article gives good reasons as to why it's happening.

spanish-property DOT NET/say-spanish-property-market-recovering/9385/

A bit of activity in the sector can only do good as it will give out-of-work builders a chance to earn wages again. I can't see it ever getting as crazy as the early 2000s, but you never know.

I'm nuetral in this thread with no business property interests in Spain.  But yes I reckon there are distinct indications that now is the right time to buy.  Where I am in Murcia there have been several sales of properties since the new year that have been on the market for ages.  Inevitably they were the best priced, but last year there was little or no interest.

Whether you rent in the area first is a personal choice - not a "right" or "wrong" approach.  But it must also reflect the deal being offered - the best ones will go first.  If you've done your homework and got the cash lined up you may lose out if you delay.  One things for sure, whatever you do is a risk, so perhaps your decision should be driven by gut feel, rather than being too rigid.

I don't reckon the market will change that quickly as it seems that the numbers of prospective purchasers are still modest.  But at least the market is finally in recovery which must be a massive relief to all those who have really suffered over the past few years.

Just a word of caution for potential buyers, which you may be aware of anyway.

Beware of figures that just show a percentage rise in sales (which is usually all one sees).  

They of course mean nothing. 

10 properties sold last month,  15 this,  is wonderful:  a 50% rise, but in reality only 15 sales.  If a few years ago the number of sales was in the hundreds then 15 does not mean the market is doing anything.

If things were really taking off it would be apparent to everyone, not 'just those in the real estate business.'  I've not noticed any such change.

If I had a Euro for every time someone said 'now is the time to buy property the market's turning' I would have a free holiday. Cutting through the marketing spiel is the most impossible of tasks. You will never hear the truth from anyone with a vested interest.

The most sensible thing to do is research on the ground for weeks and make your own mind up from what you see not what anyone tells you.. Personally I see little evidence of movement. I see properties well priced still sitting in agents windows and on web sites. Don't be fooled by the hyperbole. 

If I had a Euro for every time someone said 'now is the time to buy property the market's turning' I would have a free holiday. Cutting through the marketing spiel is the most impossible of tasks

This is true.

However, one should also note that by the time a recovery is clearly underway and the rebound we are seeing is clearly a real recovery and not a dead cat bounce, we will have missed the bottom of the curve. If you only start searching at the point, the market will be quite some way from its lowest point by the time you buy.

Some people are seeking to time the market. That is obviously a dangerous game. But everybody should be aware of their own risk level and how comfortable they feel in handling risk. The market is not about logics. It about gut instinct. Most people tend to overestimate how good an indicator their gut is.

Discounts.

I know I am unusual.   I have sold several times in Spain.  I have always asked what wanted and made it clear that was the price.  I never discounted.

The whole idea of a discount is doubtful.  As we know the shops have sales. In UK they must have offered the item at the 'original price' for a month or so,  OK, so they have a shop, in a remote place.  Hull is I believe popular, where they have stock for a month at a highly inflated price.   Of course they do not expect any sales.     They then offer a 50% discount at their other outlets.   Do people really think they are getting something at 50% less than it is worth ?

 I want 100K for my house, so I put it on the market at 150 K and people think they are getting a great deal when I accept 100 K.  No, I really don't think people are that gullible.

So true johnz. The current marketing methods of selling property goes like this. "Before the crisis this house was worth €250k now it's yours for €50k! Wow says the buyer thats a real bargin" Except it's actually only worth that if the buyer will actually pay €50k and he then pays current the market value. Very simple logic but folks are gullible, they really are.

So true johnz. The current marketing methods of selling property goes like this. "Before the crisis this house was worth €250k now it's yours for €50k! Wow says the buyer thats a real bargin" Except it's actually only worth that if the buyer will actually pay €50k and he then pays current the market value. Very simple logic but folks are gullible, they really are.

EOS seems to have more than it's fair share of doubting Thomases. 

At the end of last year I was gazzumped on a purchase.  This year I have noticed that several other properties I half fancied have also been sold. 

This is not surprising.  Prices reached their lowest a while ago and there are always newcomers, people retiring or wanting a holiday home coming onto the market.  Yeah it's a trickle currently, but it's got to start sometime.

Yes i think now is a fantastic time to buy, with a 1.40 exchange rate and low prices 

Have seen several new comers in our area

Think things are on the up now, at last!

Tony

I have a property on Camposol their are not that many houses for sale on the site and the ones that do come up for sale are snapped up very quickly most property that you will come across on Camposol is at least half the price the owner paid for  it was back in the boom days .