Spanish Property Insight › Forums › Spanish Property Forums › Property Questions & Answers › Buying this year, or next year (10-20% extra charges) › Re: Re: Buying this year, or next year (10-20% extra charges)
This is going to be a dilemma for many.
Prices are coming down (down 8.4% in the second quarter according to the Ministery Fomento)
Yet various tax changes, iva and desgravacion will mean that charges will be a lot more if buying in 2013.
Add into the factor though that the number of purchases will probably now rise over the next few months (as people strive to avoid the changes) and thus prices will now probably hold steady until the new year (when there will probably be a further drop).
It’s an artificial situation, and tbh it scares me. Scope to make a financial error either way (buy now or wait until the drops of next year).
No need to be scared. For most foreigners it’s pretty simple – you should wait until next year at the earliest. The removal of desgravación only affects those who pay income tax in Spain (i.e. the Spanish and a few others) so most foreign buyers will not benefit from buying now. The increase in VAT on property at the end of the year only applies to new builds, and most of those are still stupidly over-priced, and the other measures will make property less affordable for people living in Spain. Take into account that there may well be more austerity to come, the possibility of the world economy grinding to a halt next year (according to Roubini at least), and a weakening euro, then everything indicates that prices will be quite a bit lower this time next year.
In earlier posts I was saying that it might be worth looking around now if you are a cash buyer who is able to snap up a bargain quickly, since I’ve been seeing a few decent properties being heavily reduced, but now I think it just isn’t worth it. There are going to be a hell of a lot more motivated sellers on the market pretty soon.
Good post Chopera.
Keep your eyes open and you may find what you are looking for at the right price but don’t be reckless about it. You can never guarantee anything but with moves like this I can almost guarantee you that prices will be lower in a year if buying second hand in general.