Angie, yes, transaction costs and ownership costs are too high, and that’s a problem for those looking for pure financial returns.
However, I believe that inflation in the coming years is going to wipe out savings and bonds. Given how much prices have fallen, Spanish property might be a reasonable way to protect capital over 10 years or more. But I don’t think it’s going to be a lucrative investment.
I’m still in the process of developing my thinking on this. For the last 7 years I’ve been bearish about Spanish property. I’m beginning to question my assumptions. There will obviously come a point in time when you can make a reasonable investment case for prime Spanish property. I think we are at least more than half way there.