Spanish Property Market - Cash Buyer’s Set to Cash in During Economic Downturn
By Robert Griggs

Well, you’d have to be an alien not to have heard or worse still, experienced the affects of the current economic downturn that has crippled financial markets worldwide. With many would be investors waiting for a greater depreciation in house prices and more favourable exchange rates, is this the right time to buy and what kind of affects has the current crisis had on the Spanish property market in general?

There have definitely been some major changes and moves taking place here in Spain, with prime minister Zapatero recently agreeing to allow unemployed owners of Spanish mortgages to defer their mortgage payment up to 500 euros per month for two years commencing in January 2009. This is no doubt a welcome relief for many of those who currently have Spanish mortgages and are feeling the pinch.

This has come at the right time due to the high unemployment currently experienced in Spain which currently stands at around 11%. This figure is also set to rise to around 15% by around 2011 making Spain the top for unemployment in Europe.

It’s a fact though, that mortgages and financing of any kind are a lot harder to obtain due to the global credit crunch and things seem to have grind to a halt and do not look like improving until at least 2009, or possibly a lot longer according to economic analysts.

This then is a great time for cash rich investors and buyers to “fill their boots” and snap up a bargain or two. Although off plan new development prices have been reduced hugely over the past months with developers virtually selling property at cost, there may not be such huge pickings for the savvy investors but there are still many great bargains to be had from desperate owners just looking to sell in order to free up cash held in their primary asset.

Recent figures suggest that resale properties are currently being sold at around 25 -30% of their asking price or market value which represents fantastic investment value in the long term for those who are able to move quickly and who do not require a Spanish property mortgage.

So our next question has to be “Is now a good time for an investor to buy property in Spain?” And the answer to that my friends has to be yes. If you are cash rich then now is a great time to buy in Spain for those looking to move quickly, barter hard and sniff out some really excellent investment opportunities that are available.

If you are able to purchase now at a hugely reduced price and hold on to the property for the next 3 to 5 years, this should help to yield excellent capital growth in the mid to long term.

Robert Griggs writes for PGM Property World who are an established family run estate agent based on the Costa del Sol Spain. PGM provide a wide range of Spanish property for sale on the Costa del Sol including resale and off plan spanish property. Please visit pgmpropertyworld.com for further information on buying in Spain and their current property portfolio.

Article Source: EzineArticles.com/?expert=Robert_Griggs

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