Munky’s point is when, if or at all will the time be right to invest in Spanish property. Munky is a market man so should understand well the premise of risk.
High risk requires big rewards. Right now investing in property anywhere for profit is a risk, however the risk is higher in Spain because of the factors correctly described by other posters here.
So if high risk is to be well rewarded it must be possible for an investor to buy property at substantially reduced wholesale prices. That is not currently possible.
Spanish banks are sitting on an enormous amount of none performing assets,(repossessed property) content in the knowledge the ECB will fund their shortfalls. Bankrupt developments sit rotting, growing weeds waiting for the upturn which may never come.
Investing now is not likely to produce returns for a minimum of five years. possibly more. That’s a long time for capital to rest, producing nothing.
Therefore what we have in Spain is stagnation and serious decline. It would be a brave if not foolhardy investor to risk capital in a market that is completely moribund if not completely dead as a parrot.
I have personally tried to persuade some banks to open up the flood gates, release their non performing assets and take the hit. Nothing doing. They are not convinced. They really believe the upturn is just round the corner so why pass on any benefits to the likes of I.
Moral hazard again. As long as the ECB tap continues, there is little incentive to get the market moving.
In any case demand is simply none existent. When you have massive supply and no demand, you have bankruptcy. It’s schoolboy economics. Unless you have a benefactor called The European Central Bank.
So to answer Munky’s question. In my opinion if you are an investor for profit don’t touch Spanish property with a long pole.
If you simply want a holiday home in the sun there are many other safer destinations without the high tax overheads of Spain. I regret to say it but I believe Spain has had it it’s day.