News: Reasons for buying a property in Spain

Reasons for buying a property in Spain
Written by Inmo Investments - 6 Aug 2015

After a half a decade of serious financial crisis, Spain is beginning to pull itself out of a financial tailspin. Foreign investors are now sensing the great opportunities present in the current market and are now buying in record numbers with a 12 % increase so far in 2014. Bill Gates himself made the clearest indication of the investment opportunity available in Spanish property by becoming the second largest shareholder in FFC, a Spanish construction company in October 2013. We cannot say fairer than that!

We take a look at the compelling reasons to buy a Spanish property (other than the Spanish sunshine!) and here are the top 5.

1. POSITIVE RESULTS: Property sales have stabilised and rose by 12.1 % during the second quarter of this year (Ministry of Public Works stats). Consumer confidence has returned and people are taking notice that now is a good time to buy. Bank confidence has also returned and the mortgage market is starting to signs of positive reactivation. Mortgage concessions rose by 19% in June and 28% in July (INE stats)
In certain areas prices are starting to stabilise with the results for the second quarter of 2014 which were released by the registrars and the National Statistics Institute which showed increases of 0.97% and 0.8% respectively.
Statistics are showing that the market has now bottomed out and the only way is up!

2. BUYERS MARKET: There are currently still great opportunities for bargain properties and limited numbers of serious buyers and general economic conditions have left some sellers in a weak negotiating position. The current real estate marketplace in Spain offers the savvy real estate investor a substantially higher return rate on his or her investment than in prior years.

2014 is set to be a particularly good year for buyers as new tax laws coming into force from next year mean that, for many property owners, their capital gains tax will increase significantly if they do not sell by the end of this year. This could mean that these sellers, in a rush to get rid of their property and avoid a hefty tax bill, may accept prices below market value.

3. PROPERTY CHOICE : There is still a large amount of unsold stock in Spain meaning a great choice for a potential buyer. Properties of all types and in all locations are currently available from private re-sales, bank repossessions, to the return of the modern new-build developments, particularly in the most popular coastal areas such as the Orihuela Costa
Although unsold stock should remain high for a few years to come in many areas, some of the most popular destinations are seeing their stock rapidly diminish. As the rush for investment increases it is predicted that the 10,000 - 15,000 unsold homes could be sold in less than 2 years!

To be able to take advantage of the bargain prices on quality homes, buyers should act now!

4. LOWER FEES: Due to the drop in prices the fees associated with purchasing a property in Spain have also fallen. Notary and registrar fees, as well as fees for agencies and solicitors have all dropped as they are in most cases linked to the purchase price of a property.

5. BOOMING SECTOR: Tourism figures are rising annually in Spain as more and more tourists flood over to enjoy the countries fantastic tourism and of course sunny climate. From January to August 2014 45.4 million tourists visited Spain which set a new record for the country's tourism industry. Rental properties are booming and providing a great opportunity for many prospective buyers to invest in that perfect rental opportunity.

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