Buying Property In Spain Part I. Buying Resale: Avoiding the Pitfalls

Raymundo Larraín Nesbitt - Lawbird Legal Services
Dated: 2010
Introduction

I reckon one of the best times to buy property in Spain will probably be the next couple of years. Many bargains are cropping up continuously post credit crunch as landlords struggle to remain afloat. House prices may still have further to fall as a whole but that doesn’t rule out the fact there are already interesting opportunities available in the market. Some highly qualified sources are of the opinion that property prices still remain overvalued in Spain by an average ranging between 24-55% and yet other sources hint at a silver lining claiming there´s strong empirical evidence suggesting that prices may be already bottoming out (providing you trust official statistics). As American novelist Mark Twain used to note with an acute sense of humour: “There are three kinds of lies: lies, damned lies, and statistics.”

The truth probably lies somewhere in between. What people seldom remember is just how fast property prices appreciate if there is the faintest expectation of a market recovery and yet how slowly prices fall because landlords are understandably reluctant to take a hit lowering them. This asymmetry of expectations is what we are now witnessing in slow motion with property prices decreasing ever so slightly. Whatever the case may be, it is undeniable the next couple of years are going to provide plenty of one-time buying opportunities.

Having this in mind, I’ve written two brief articles on the most common blunders that ought to be avoided by foreigners on buying property in Spain.

This first article will focus on resale property and the second one on off plan (also known as new build property or new construction).

In this first article I will barely mention rural property or commercial property as I consider they merit each their own articles.

I’ve already covered the topic of rent-to-buy contracts in my prior article as an opportunity to take advantage of the current market turmoil for those who are committed on buying a BMV property.
Tips for Buying Resale Poperty In Spain

The following useful tips will help you avoid the majority of resale associated hazards:

1. Hire a Qualified Registered Lawyer

This is the single most important advice you can be given. If you only happen to follow this first tip the rest of the points mentioned in this article become redundant.

I cannot stress enough the importance of retaining a Spanish lawyer, if you are a foreigner, to act on your behalf in a conveyance procedure, both on buying and selling property. It is often that I hear that those with vested interests in their being no lawyers involved, (I wonder why) are often the most outspoken on advocating that retaining a lawyer is an unnecessary expense and always put as an example Spaniards themselves.

It’s true that Spaniards, in most cases, do not retain a lawyer to act on their behalf in a conveyance albeit this can be explained for a number of reasons. Almost every Spaniard has a relative or a friend who may advise them free of charge. Besides they are fluent in their own language (!) and have ready access to legal articles and other material related to conveyance procedures which are regularly published in the press. Even so, some Spaniards still end up having problems on buying or selling because they did not want to hire a lawyer. Quite often their blunder far exceeds what a lawyer would have charged for his services (typically 1% of the property value plus 16% VAT).

I want to clarify that one can only label himself as a “Lawyer” on being both qualified and registered:

1. Having passed and attained a Spanish Law degree or else by having homologated it (qualified)
2. and on being admitted to practice Law at one of Spain’s Bar Associations (registered)

The second point is already inclusive of the first one, as on applying to practice Law before a Bar Association one must submit both his Law degree and his full academic record. Additionally, someone with a criminal record cannot join the Law Society. One should be very wary of those claiming to be “lawyers” and yet are not registered to practice. Quite a few of the notorious mishaps featured in the press relate to non-qualified intruders dealing in conveyance matters.

Someone who is not registered in a Bar Association cannot entertain to address themselves as “Lawyer” nor legally perform the duties and roles of one i.e. you cannot run a law firm in Spain if you are not a lawyer yourself.

Registered lawyers need to abide by the Code of Ethics of the regional Law Society to which they belong. In serious cases a lawyer can be struck off the Bar and barred to practice law.

I write the above because we have been alarmed over the last year by the increasing number of bogus “law firms” which have been set up by unscrupulous people who are neither qualified (no legal background or even holding a completely unrelated professional background i.e. Advertising Executive!) nor registered to practice as lawyers; yet they are writing and publishing legal articles on websites and weekly free newspapers posing as if they were indeed self-appointed qualified legal experts or else soliciting unlawfully clients over internet in popular ex-pat forums giving flawed legal advice and making continued far-fetched claims. As a final word of caution, do not be fooled by a company that is trading which has the word “Abogados” (lawyers, in Spanish) in its name, i.e. “Perez and Perez Abogados SL”. This means nothing. We have compiled a list of bogus law firms which is regularly updated.

Only registered lawyers have Professional Indemnity Insurance which may protect you in the event of malpractice or negligence. You can claim against said insurance in such a case. All registered lawyers are assigned a practising number by their Law Society i.e. number 6072 of Malaga’s Law Society. This number is not unique, so there can be many lawyers sharing the same number throughout Spain as they happen to belong to different regional Law Associations. The number will be unique nonetheless within the same regional Law Association. You can easily check if your lawyer is registered to practice law on this Registered Lawyer’s Database.

Bottom line; make sure your lawyer is registered to practice, for your own sake. Be wary of cold calls from legal advisors, senior legal advisors, legal executives, paralegals and in general anyone who does not clearly identify himself/herself as a lawyer (and is therefore registered). These fancy titles don’t mean anything in Spain. Or you are either a registered Spanish lawyer or you are not, period. It’s that simple. Someone who is not a trained registered lawyer is not qualified to give legal advice, cannot identify himself as “lawyer”, cannot solicit clients for legal services even if outsourced, nor practice law in Spain.

If the property you wish to buy is of a high value you should previously seek specific advice so as to mitigate tax exposure, namely to Spanish Inheritance Tax. Often the best tax planning results are achieved prior to purchasing the property as they often require to incorporate holding companies locking up the asset.

It is advisable to retain an independent lawyer.

You can request a list of recommended lawyers, who correspond in English, from your home country’s consulate.

2. Has the Property Been Registered Properly?

It is commonplace that extensions on properties are unregistered at the land registry. You will only find out on requesting a mortgage loan when the bank either turns you down or else offers significantly less money than what you were expecting because the extensions remain unregistered i.e. a 4 bedroom villa which has only 2 bedrooms registered at the Land Registry.

This problem can be easily overcome by signing a New Build Deed at the Notary and paying the associated local tax levied by the Town Hall for the extension. This deed is then registered and the property description is amended accordingly adapting it to reality. This ought to be done by the vendor prior to the sale, unless agreed otherwise. This case is especially true of rural properties.

Other cases, such as illegal rural properties, may be fraught with legal problems i.e. the property had only been given a licence to build a small tool hut of 3×3 m2 to plough the fields and yet a villa has been built instead. Rural properties can be a legal quagmire and it is essential you retain a lawyer to act on your behalf and best advice you on the matter, from the very beginning.

In other cases, for perfectly legitimate reasons, properties remain unregistered or they lack the Title Deed (escritura). i.e. property inherited from one generation to another. There are different legal ways to overcome this minor problem: Acta de Notoriedad or else following an Expediente de Dominio.

3. Is the Property Registered Under the Vendor’s Name?

This may sound as a fairly obvious point but quite often than not I’ve found out the person who had the property listed at the Estate Agency was not the registered owner. This can be explained for a number of legitimate reasons. i.e. the registered owner has passed away recently and the inheritance tax liability has not been sorted out yet. Until the Spanish IHT is not settled, the property cannot be registered, mortgaged or sold by his beneficiaries.

This will be one of the first checks that your lawyer will do. You can do it yourself requesting a nota simple at the land registry where the property is located either physically or online (you have to be registered user for the latter). Or you can just simply hire a Land Registry Search Service for a small fee.

Only the owner or someone else appointed by him acting as proxy (empowered with a Power of Attorney) can sell the property.

4. Are There Charges, Encumbrances or Debts Against the Property?

Additionally the above land registry information will describe the property (size, bedrooms, boundaries etc) and reveal if there are any charges or liens against it i.e. a mortgage, a right of way or even an embargo.

However not all debts against a property are lodged at the land registry. This is an angle which your lawyer will cover as well. For example on buying a resale in a Community of Owners in Spain you will be held liable for all the debts of the previous owner in the current year in which you are buying it and also for the previous year, in other words, dating back two years. The new owner will also be held liable for unpaid utility services and local taxes. This is because these debts go against the property itself, not against the previous owner. So whoever owns the property will be held liable.

Other local taxes levied by the Town Hall where the property is located may be left outstanding by the previous owner (i.e. IBI tax and Garbage collection). These may not be lodged either at the property register.

It may be a good idea to hire Title Insurance just to play safe. There are companies offering you 20 years legal protection at very competitive prices. It’s well worth looking into.

5. Are There Tenants Living in The Property?

You should be aware that in Spain laws are biased towards tenants for historical reasons. If you happen to buy a resale which, unbeknownst to you, is being let by means of a Tenancy agreement signed after the 1st of January 1995, you will be forced to respect their tenancy until it elapses to take possession of the property. In Spain long- terms are for five years although this has been slightly amended by the “Express Eviction Law” which has been passed recently. You can however reach an agreement with the tenant to leave the property beforehand in exchange of a suitable settlement. But you cannot force them on this point.

On buying a bank repossessed property you may find a tenant living inside with a long-term contract. Even lenders on repossessing properties have to respect these long-term tenants, unless they reach a settlement with them.

Moreover, these long-term tenants may be legally entitled to exercise their pre-emption and buyout rights (derecho de tanteo y retracto) in a resale as enshrined in section 25 of Spain’s Tenancy Act. Landlords must communicate to their long term tenants, prior to the sale of the property, their intention in doing so as well as the sale conditions so that tenants may exercise their right of first refusal within the next 30 days. Failure to communicate it or doing it in a flawed manner (i.e. the mentioned sales price is in fact higher) will trigger their buyout right. It will then be up to the tenant on whether to exercise it or not.

The main problem is that regrettably in Spain there is no Tenant’s Public Registry that you can check on, so you are always taking a gamble on buying a resale. Seldom are long term tenancies registered at the Land Registry. There is however a private website that offers this service: FIM. Your lawyer can of course draft specific clauses both in the Private Purchase Contract (PPC) as well as in the Title Deed to protect you against this and other unforeseen events i.e. squatters. This may be yet another good reason to hire Title Insurance.

6. Knowing Your Owner’s Rights

If you are buying in a Spanish Community of Owners, Comunidad de Propietarios, it is advisable you request beforehand both the Community Statutes and the Internal Community Rules (the latter being optional, do not always exist) to avoid future problems with your neighbours. i.e. Internal Community Rules that ban tenants from using the community pool. This internal rule can be particularly troublesome for those landlords who bought with a view to let not to mention that it can be challenged.

Additionally, depending on which of Spain’s 17 regions the property you are buying is located in, besides being protected by the General Legal Consumer Embodiment which rules nationwide, you are also protected by specific Regional Consumer Laws. An example of the latter would be Decree 218/2005 which rules on Consumer’s Rights on buying and letting property exclusively for the region of Andalucía. These regional laws compliment national laws adding security and rights to consumers at large.

7. You Do Have a NIE Number, Right?

A NIE number is a Tax Identification Number for foreigners enabling you to file and pay taxes into the Spanish Tax office. It will be required, for example, on buying and selling property, on inheriting assets in Spain, on opening a bank account, on buying a car, etc.

You cannot complete on a property in Spain without one, either on buying or selling, as the Notary will disallow it. You can easily arrange a NIE Number through us in less than 2 weeks removing all the associated hassle and stress of applying for it yourself. This can be arranged without you needing to book a flight and fly over to Spain twice, saving you hundreds of pounds in the process. Not to mention making those awful queues at 7 am before a Police Station!

8. Post-Completion: Make Sure the Property Is Now Registered Under Your Name

Once you’ve completed (or closed) on the property ensure it has been registered properly under your name. This process takes on average 30-60 days after completion. If you applied for a mortgage loan and your lender is the one dealing with registering the property, expect at least a delay of six months -if not more- until you are returned the original Title Deed. Banks always withhold the original Mortgage Deed for their records and will give you only an authorised copy. Once the property has been duly registered you can request the original Title Deed for your safekeeping.

9. Post-Completion: Dealing with Property Taxes, Utilities and Community Fees.

Once you have acquired your new property, you will now have to face all the associated running expenses. Make sure you have budgeted this carefully so as to avoid unpleasant surprises! Some of the luxury gated communities with lush tropical gardens and beautiful infinity pools that dot the Spanish coastlines may have pretty steep maintenance expenses. Any unpaid community bills will result in the Community of Owners placing a charge against your property which may lead to auctioning it off publicly to recoup the debt! This legal procedure in Spain works fairly efficiently.

You should open a Spanish bank account if you haven’t done so already. Utility companies do not accept overseas payments and like setting invoices as standing orders against your Spanish account. You should set at least as standing orders all the following:

* IBI tax. Paid once a year (akin to UK’s Council tax).
* Garbage collection. Paid twice or once a year depending on the Town Hall.
* Utility bills (invoiced quarterly in the case of water and monthly with electricity)
* Community Fees (only if you’ve purchased in a Commonhold). Usually quarterly but can vary.

You are also liable to file Income tax on holding property in Spain every year for which you may need to appoint Fiscal Representation.

I cannot stress enough how advisable it is that you make a Spanish will to dispose of your Spanish estate. This will not preclude any other made in your home country. It will save your beneficiaries time, money and hassle.

In Conclusion

Despite the negative press the Spanish Property Market has endured abroad over the last years, specifically off-plan, the fact is that the vast majority of dozens of thousands of buyers who purchase property in Spain every year experience no problems and enjoy a straightforward transaction. In any case, if unsure, you can always sign a rent-to-buy contract to test the waters.

That is not to say there are no problems, far from it. There’s a lot of room left for improvement enforcing existing laws (i.e. Law 57/68 regarding bank guarantees comes to mind). Moreover, both the Spanish Government and the Regional Authorities are continuously working hard to pass on new laws that will address the system’s flaws (i.e. Law 13/2009) and better protect Consumer’s Rights enabling smoother conveyance procedures in a Safe Buying Environment.

* Advice on buying property in Spain from the U.K.’s Foreign & Commonwealth Department
* Advice on buying property in Spain from the R.O.I.’s Foreign Affair’s Department

Please note the information provided in this article is of general interest only and is not to be construed or intended as substitute for professional legal advice.

Article Source: marbella-lawyers .com/articles/showArticle/tips-on-buying-a-property-in-spain

Andy Bolton

Buying Property in Majorca

A Finca Mallorca is the Quintessential Mallorcan Holiday Home
By William Robert Wood

For many people, the quintessential holiday home is a Finca Mallorca, combining a beautiful island with stunning rural property to provide the ultimate in luxury.

Literally translated, Fincas Mallorca basically means ‘Mallorca property’. Though Finca Mallorca has become a major buzz word and is used more commonly to refer to a specific type of Mallorcan property, namely rural farmhouses. Usually these are large properties although they can vary hugely in size. Whatever the size, these Fincas Mallorca are always in great demand!

You’ll find Fincas Mallorca all over the island though usually not directly on the coast as these do tend to be rural properties. In fact their popularity stemmed from the growth of rural tourism as tourists began looking for accommodation away from the crowds in order to enjoy the other side of Mallorca. Soon, Fincas Mallorca were being snapped up by interested parties who spent thousands renovating them into luxury holiday homes and the boom began!

If you’re looking for a Finca Mallorca to buy right now, there are usually two options - either you buy one, which as stated above, has already had thousands spent on it in renovation costs and it’s now ready to move into and enjoy; or you buy one which hasn’t been touched though will need renovations before you can move in.

Obviously if you opt for the first choice you can be enjoying your Finca Mallorca in next to no time! The drawback with this is that you may need millions of Euros in the bank to be able to buy one!

The main advantage with buying a Finca Mallorca which needs work is that you can buy it cheaper initially; however, you will then need a lot of money to turn it into a luxury home, but if you can afford to do this you could end up with your dream Mallorcan property because you can fit it out and finish it exactly as you want it.

Many of the larger Fincas Mallorca have already been renovated and converted into hotels which are very popular with visitors to the island. If you don’t have the millions to spend but want to experience a Finca Mallorca for a week or two, staying in one of these is an excellent idea! Alternatively you can rent a whole Finca Mallorca with your family for a unforgettable holiday.

We should make it clear though, that not all Fincas Mallorca cost millions; as mentioned above, these properties can vary vastly in size and although some may be large enough to house a hotel, some are actually rather small and quaint and these will be more the affordable ones.

For the ultimate holiday home choose a Majorca property!

These wonderful rural properties let you enjoy the best of what Mallorca has to offer and if you can afford to buy a renovated, luxury Finca Mallorca you’re sure to be the envy of all your friends!

Article Source: EzineArticles.com/?expert=William_Robert_Wood

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SAMPLE PROPERTIES FOR SALE IN SPAIN and MAJORCA

We have over 30,000 Properties Across Spain and its Islands

How to Control a Currency Panic
Published: October 27, 2008

The financial crisis has ratcheted up a dangerous notch. The currency markets have gone topsy-turvy. The authorities now have to make some pretty big and delicate moves — something like performing microsurgery in a plane in turbulent skies.

The yen has risen by 40 percent against the euro since August, with most of that occurring in October.

This month, the Australian dollar has also fallen by 25 percent and the pound by 16 percent against the American dollar. Swings of this scale are alarming when they happen in the stock market . But they are petrifying in currency markets, because they make it virtually impossible to price exports or imports.

What’s going on?

Mainly, the pace of financial de-leveraging is accelerating. In particular, so-called currency carry trades — borrowing cheaply where interest rates are low, for example in Japan, and lending the funds where rates are high, such as in Australia or the euro zone — are ending abruptly.

The unwinding of these trades has jerked currencies around enough to provoke more margin calls on traders, amplifying the pressures on them to sell. Then there is fear: Investors are selling currencies of countries that import foreign capital, precipitating currency crises in eastern Europe and Korea that further hurt their economies.

This combination of de-leveraging and fear has also pushed stock markets into something like a free fall. Japan’s Nikkei index is at its lowest since 1982, the MSCI index of non-Japanese Asian stocks is down 33 percent in October and Western stock markets continue the downward spiral initiated by the credit crisis.

While corporate credit, currencies and stocks are in trouble, government bonds are still strong. That’s a relief, since the markets are turning to the world’s governments to do something to stabilize lending between banks and corporations and, now, international cash flows.

To stop the currency panic, the world’s governments should work together to set and then defend target exchange rates. That will probably require countries with big reserves of foreign currency, like China or Japan, to deploy some of the cash for the greater global good, and overspending countries like the United States and Britain to accept devaluations and lower standards of living.

It won’t be easy, but the alternative — a breakdown in the global trade system — would be far worse.

Cut the Carry Trade

The expansion of the crisis from credit to foreign exchange has made even clearer the dangers of some types of speculation. In particular, the currency carry trade has been shown up as most unhealthy.

The practice of borrowing in currencies made cheap by low interest rates, like the yen, and investing in high-yield currencies like emerging markets works wonderfully so long as times are good. Speculators don’t just benefit from this difference in interest rates, they can also enjoy a capital gain as the assets they jump into rise in value.

But when the market turns and the herd stampedes for the exit, capital gains turn into losses. That’s what is happening now. The sharp rise in the yen and, to a lesser extent the dollar, is forcing speculators to repay their hard-currency loans before the currency mismatch sinks them, with the effect of whipsawing emerging market economies. .

For speculators, this painful lesson is ultimately salutary. Once burned to a crisp, many times shy. But the collateral damage is more distressing.

The banks that lent to the carry traders suffer. Investors like pension funds and insurers who hold the assets now being dumped by carry traders find the value of these assets are falling dangerously close to their liabilities. Exporters who sell goods in rising currencies — most obviously Japanese companies — face a huge squeeze on profits.

The currency rebalance should lead to an economic catharsis. The rise in the yen could help rebalance world trade, although the rise in the dollar works in the opposite direction. Certainly, countries like Britain, with its yawning current account deficit, could benefit from a cheaper pound.

That said, this is hardly the moment for the global financial system to face more big losses, more runs on financial assets and, in response, more government capital injections for banks and perhaps insurers.

However this crisis pans out, one thing should be clear: Huge currency speculation of the kind that made the currency carry trade a cornerstone of global finance in recent years is highly destabilizing. When this crisis is over, the authorities should aim to reduce it.

Written by: EDWARD HADAS and HUGO DIXON
Courtesy: Pounds to Euros | breakingviews.com | nytimes.com

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Spanish banks solid, but economy feels crisis

Tuesday September 16, 11:40 AM

MADRID, Sept 16 (Reuters) - Spanish banks have minimal exposure to Lehman Brothers (NYSE: LEH - news) , and remain healthy, but worsening global financial market conditions will have an impact on Spain’s economy, the Bank of Spain said on Tuesday.

The comments follow concerns smaller Spanish banks could be forced to seek fresh capital if the international financial crisis drags on and bankruptcies continue to soar in Spain’s stricken property market.

‘The direct impact of the Lehman bankruptcy for Spanish banks will be minimal, given their exposure is practically non-existent,’ Bank of Spain Director General of Research Studies Jose Luis Malo de Molina said in a statement to Reuters.

‘The Spanish banking system is facing the international crisis from a healthy position, with good levels of solvency and profitability,’ he said, reiterating past statements.

‘However, it is necessary to recognise this episode signals an intensification of the serious international financial crisis, that also has consequences for the Spanish economy,’ Malo de Molina added.

Spain was the only one of the euro zone’s four biggest economies not to contract in the second quarter after the government drew on its budget surplus to launch a 38 billion euro economic stimulus package.

The European Commission expects the Spanish economy, fourth largest in the 15-member currency bloc, to contract in the third quarter and enter recession by year-end.

Spain’s Socialist government hopes for an economic recovery in the second half of 2009. Analysts say it could take longer given the country’s high dependence on house-building and real estate sales to drive growth.

Spain’s biggest banks, Santander (Madrid: SAN.MC - news) and BBVA (Madrid: BBVA.MC - news) reined in mortgage lending before the country’s real estate bubble burst and the country’s banking system has some of the world’s strictest reserve requirements.

Analysts have expressed concern over the high exposure to Spain’s property sector of medium-sized banks such as Popular and Pastor, as well as savings banks, or cajas.

The Bank (TBHS - news) of Spain has said the country’s banking system is not immune to problems in the event the crisis in international financial markets drags on.

(Reporting by Andrew Hay; Editing by Jason Webb and Stephen Nisbet)

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Spanish Property Market - The Property Crisis Explained
By Nick Snelling

The news from Spain, at the moment, is hardly encouraging for those wishing to buy here. Almost daily there are reports of Spanish property developers going bankrupt and Spanish property prices have been sliding for the past two years, with a major downward acceleration occuring over the last few months. However, along with all the problems there are also tremendous opportunities. But, first, you need to understand the Spanish property market and what has happened.

In fact, the property crisis in Spain has come as little surprise to many observers. Over the past few years Spain has experienced an astonishing economic boom that has been largely driven by property and the huge demand for it. Unfortunately, the boom was uncontrolled and led, in the memorable words of Alan Greenspan (in a different context), to an ‘excess of exuberance’. This, to some extent, was understandable as Spain benefited from a remarkable confluence of property market initiators.

Indeed, crudely, for some ten years Spain had the good fortune to have four different property markets interacting at the same time - all encouraging building and pushing Spanish property prices ever higher until the whole economic edifice became unsustainable.

The first Spanish property market was powered by North Europeans, who generally come to Spain to retire. Their dream was (and remains) remarkably similar, almost irrespective of what they had to spend. Most North Europeans wanted a three bedroom, two bathroom villa with a pool, on a flat plot, within fifteen minutes of the sea. Invariably, these villas did not exist in the past due to historic Spanish land use and had to be newly built to satisfy the liquid wealth that was pouring into the country. Huge, new estates of villas therefore quickly grew up on the outskirts of most coastal towns.

The second market was the general Spanish property market where there was a demand, from the Spanish themselves, for modern housing to replace the town houses of old. Adosados (semi-detached houses) with their clean lines, garage and light, airy rooms (on the face of it) achieved this objective. Anyone who has been into an unreformed, old town house, within a rabbit warren of impossibly narrow streets, can appreciate how much the Spanish must have revelled in these new style properties.

The third market allowed the Spanish to leave their old town houses and was driven from an initially unexpected quarter - mass immigration, albeit not from wealthy, first world Northern Europe. Immigrants from South America, North and Sub-Saharhan Africa, Bulgaria and Romania poured into the country (at some 700,000 people per year) secure that they could gain employment, ironically, often in the construction industrty. Able to buy only the very cheapest Spanish property, they bought the unreformed town houses and decaying flats of the native Spanish.

Finally, the new wealth of the native Spanish and the holiday desires of North Europeans produced a massive demand for beach apartments. These were almost as important to the Spanish as to North Europeans as, oddly enough, the Spanish dream is represented by owning a beach front apartment.

The net effect was a time of wonder for developers, both big and small. North Europeans were buying everything at the top of the market and the immigrants everything at the bottom of the Spanish property market. This created great wealth and allowed the Spanish themselves to buy into new adosados and modern, flats. Barely constrained by planning regulations, promoters of all sizes built and built - with not a thought to the future.

So great was the frenzy that many native Spanish gave the Spanish property market a further nudge by taking advantage of the building boom to buy into off-plan developments. Paying a small deposit allowed them to gain the opportunity to invest in a new development with the absolute intention of selling their adosado or flat for a profit - prior to completion of the build. Of course, if they misjudged the timing and were unable to sell their investment then they would inherit (in Spanish terms) a huge mortgage that was never intended. And with the purchasing power of the Spanish salary not having changed in ten years this could (and now is) proving ruinous for many.

By the spring of 2008, the ruinous nature of Spanish over-building (some 500,000 new properties per year too many) finally became obvious to everyone. Indeed, it is estimated that by the end of 2008 there will be some 2 million properties for sale. To make matters worse Spain, like the rest of the world, has been hit by the lunacies of the credit crunch, together with the horrors of high oil and consumable prices. The result has been a Spanish property market slump that is likely to last some years.

So, as a potential buyer, what do you do?

Firstly, it is vital to remember that all Spain´s constants - the very reasons for coming here - remain. The country has not moved several hundred miles down the African coast and life should never be delineated soley by the wisdom or otherwise of property investments! The climate in Spain is heavenly and the infrastructure that has developed over the past few years is superb.

The education and medical care systems are comparable (and often better) than North European countries, travel throughout the land is easy and the Spanish people are as tolerant and welcoming to foreigners as ever. Better still, Spain provides remarkably good value for money and a lifestlye that (according to uSwitch.com) recently topped the European quality of life index. Property problems or not, Spain remains a marvellous place in which to live.

The Spanish property slump is serious and the consequences should not be minimised. However, in fact, now is the very time to buy here. The desperation of many sellers, both Spanish and international, means that there are some stunning bargain properties to be gained - either for investors who wish to develop a portfolio or those wanting a holiday or retirement home. Indeed, it is when a market is at its most volatile that the brave buyer can really benefit and take advantage of the tremendous opportunities (and bargain properties) that exist when others are panicking.

That said, the line between a volatile, panicking market and one that stabalises can be surprisingly thin. Past experience suggests that the time to buy is when there is still turmoil and fear in the market and whilst genuine bargain properties are still for sale. Delay for too long and you can find that the best opportunities have been snapped up and that sellers have hardened their position and reconciled themselves to not selling until they can obtain the prices they want - even if this means waiting some years.

Already professional investors are starting to buy in Spain, well aware of how property markets work. So, if you are thinking of buying, think yourself lucky that you did not do so a couple of years ago - and take advantage of some of the incredible bargain properties now on offer. You may be rewarded by gaining a wonderful, long term home in a country delivering one of the finest overall lifestyles in the world!

Nick Snelling is a published author, freelance journalist and director of Spanish Goodlife.com. A selection of his recent articles on Spain can be seen on nicholassnelling.com Contact Nick for further information, articles, copywriting or his new book ‘Taking The Heat.

Article Source: EzineArticles.com/?expert=Nick_Snelling

Great Places to Buy Spanish Property
By Tracy Hildreth

With the beautiful sandy beaches of the Mar Menor (Sea of Menor) only 700 meters away, the resort offers the best combination of beach, sea, sand and golf anywhere in Murcia Spain.

There have been 2 golf courses designed by world famous golf professionals to make championship courses in length plus the first course offers spectacular views of the Mar Menor and its islands, and at over 7km long will challenge even the best players. The second course is a great Mediterranean oasis, with lakes in play on 10 holes, deep vegetation and fantastic views of the Mar Menor, old mills and the Monastery make it a pleasurable and enjoyable course to try your luck on.

With overall investment of some 1 billion euro’s, this area is without doubt the most ambitious project of all those created in the Mar menor and Costa Calida areas of Murcia, Southern Spain. With exclusive residential areas, luxury hotel zones, shopping and leisure areas, natural spaces and paradise like beaches to ensure it is really setting a standard for the Murcia region.
Phase 1 of the development has recently been launched La Isla and offers a great opportunity to invest in the resort at the lowest price level.

Even though the worlds property boom has been slowing down, in particular in Spain it is also worthy to note that the Murcia region of Spain shows no sign of slowing down any time soon which makes this area a great place to invest in for a Spanish holiday home, to rent out or to live in year round.

If you are interested in buying Spanish property abroad then you will have to research each area, decided upon whether you are going to buy property in Murcia, or more specific in a gated or golf community. Once you have decided on buying property in Murcia, Spain you should then research companies – some even offer free trips.

Cactus resorts is specialists in Polaris world Spanish Villas and Property to buy in Murcia Spain. Mancala Technology are specialist in Internet Marketing.

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