IF you have been sitting on the fence when it comes to buying a property in Spain, the time to act is now.
House prices have risen consecutively for the past four years and the same is forecast for 2018.
The average property price will increase by 6.1% this year, according to the Property Outlook report by the IPE.
It means if you had bought a €450,000 property last year, you would stand to add just under €30,000 to its value this year.
The property market is one of the world’s greatest success stories after coming back from the depths of the 2008 crash, which saw prices plummet by 30% between 2008 and 2013.
In the last four years alone, prices have bounced back by an average of 21%, and the trend is positive for the next few years
, especially given that Spain is one of the fastest growing economies in the EU.
Property prices will return to those seen at the end of 2004 and the beginning of 2005 when the property boom was in full swing.
So if you have the opportunity to invest, there are no more excuses, and when you do take the plunge, make sure you hire a broker to guide you through the sometimes murky waters.
With established links to all the major Spanish lenders, the Finance Bureau acts as a go-between for the client and the bank – but it is important to remember that the broker is not connected to the bank and works to find the buyer the best deal available.
It is the broker’s prerogative not just to find a mortgage for the client, but to find the best possible match for the individual client’s needs and their circumstances.
Lenders are still looking for the most credit-worthy clients but different banks have different criteria and it is important to match these correctly to ensure the mortgage is approved.
In fact, The Finance Bureau doesn’t even charge a broker fee until completion…in other words we are only paid on results.
A good broker will be aware of all the products available and where to find the best deal.
And the importance of finding the ‘right deal’ is imperative as it is not viable to switch products (as is common in the UK) due to the cost of set-up.
Without wanting to scaremonger, choosing the wrong mortgage option can have a catastrophic impact on the next 20 or 30 years of your life.
So when you do decide to invest this year, make sure you give us a call.