Investing now in -spanish- property is foolish. That’s why I write of banks and other investments.
Indeed, my comments were more focused from an investment point of view as that was a thread biased to giving investment advise.
If you need a house to live in, I advise you rather than buying off-plan propeties to buy resales. There are now plenty of resales available which are trouble-free from the legal point of view (they have LFO, utility connections, no planning problems, Building licences in place, no developers about to go bankrupt as we are seeing already etc…) and many sellers are offering already very attractive discounts because we are in a Buyer’s market, so prices can be negotiated a lot with vendors right now and are willing to accept large discounts. Accept no black money (illegal), just walk away, the vendors will change their minds, believe me. Renting for 3-5 years in Spain when you really want a house to live in and not as an investment would be very foolish and would mean just throwing your money away, at least in Spain. Prices will drop, especially in the costas by perhaps 20-30%, no more than that IMHO. But that’s ok after seeing how prices have soared for the last 10 years tripling some property values which is just crazy.
Due to the many changes in law that I’m seeing almost every month that will be in effect as from the 1st Juanuary 2007 (i.e. CGT down from 35% to 18%, Mortgage Law changes reducing the expenses of mortgages and Notary fees reducing them by as much as 60% and even 90% in some cases, 5% Tax Authorities retention for non-residents going down to 3%, new mortgage products which were unknown in Spain and are aimed at the elderly segment over 65 years old etc…) I think that it will be an excellent opportunity to wait and buy resales -to live not as an investment- as from the first of January next year 2007 when all these legal changes will be in place saving you a great deal of money.
If you are only into making money out of property in Spain -investing- forget it. Wait 3-5 years in Spain to buy anything. You will be able to pick up huge bargains as it always happens in Spain in the following years when all this real estate frenzy comes to an end and the prices are once more corrected and adjusted.
Not only in Spain:
When the US sneazes we Europeans catch the cold ….