SPAIN appears to be getting back on track with renewed interest on the Costa del Sol.
Latest reports say Spain is once again the most popular destination for mortgage enquiries, accounting for 45% of demand in the second quarter of 2015.
The Spanish economy also grew by 1% in the same period, overtaking Britain’s recovery. Current expectations for the year are an impressive 3.3% growth and our own analysis predicts 2015 will see a 2 to 3% increase in property prices and in some cases more.
Having been a successful agent and very safe property investor for 25 years, I have just started borrowing as much as possible to invest on the coast again and been recommending family, friends and investor clients to do the same. Take it from me, five years from now, you’ll look back at these low prices and wish you had stretched yourself and bought bigger or more properties.
The Spanish market is busy, exciting and officially back on the move. After quadrupling our marketing throughout Europe, the year started off well for Overseas Dreams, however, it has now stepped up a gear. We actually need a lot more properties to satisfy the buyers we have – which is why we are temporarily lowering selling fees to obtain more properties and meet demand.
WHERE ARE THE BUYERS COMING FROM?
Our buyers are coming from all over Europe. French demand has increased, due to increased property/wealth taxes there, while we continue to market and sell to the prevalent Scandinavian market. The British though are at the top of the purchasing table, largely thanks to the strong pound encouraging some fabulous deals.
MY ADVICE FOR SELLERS:
Now is a good time to sell – but don’t expect to be getting prices from days gone by. Although buyers are confident that the future is bright, they are still looking for correctly priced properties, which are currently around 35-40% less than the height of the market in 2007/08. It will take years for the market to significantly jump in price, so if you currently have better use for your money – for example cruising the world or simply freeing up your cash, now is as good a time as any to sell. It is definitely a good time to sell if you are buying again in Spain or UK, even if initially losing money from purchasing in the boom, the shortfall should be redressed by purchasing sensibly, especially if up-sizing.
MY ADVICE FOR BUYERS:
It’s been the perfect time for investors and holiday-home buyers to purchase at the bottom of the market, knowing that sales have already increased by around 30% and property prices are also on the rise. It’s almost a no-brainer for anyone wanting to invest in property. Bricks and mortar have historically always been a safe long-term investment, especially with the bonus of covering running costs by summer holiday lets and winter rentals to golfers. I recommend you keep the property for personal holiday use in May and September, when the climate is perfect and the coast reverts to its normal charm.
Despite a highly professional team, I like giving a ‘personal touch’ and encourage clients to use my 25 years in real estate, investment and extensive knowledge of the Costa del Sol.
Contact me or my team on (0034) 951 551 444 or [email protected]