Spanish Property Insight › Forums › Spanish Property Forums › Spanish Real Estate Chatter › Is there demand for holiday-homes if the price is right? › Re: Re: Is there demand for holiday-homes if the price is right?
So I’m wondering, is “cheap” enough, or does it have to be “very cheap”?
Well, cheap and very cheap are just words, they need some context, cheap and very cheap compared to what?
I actually don’t think it’s property prices that is the main problem. It’s never been cheaper, at least not in the past 15-20 years to buy a property in Spain what with rock bottom interest rates and even taking into consideration the weaker pound against the Euro. If you don’t need a mortgage, have cash in hand and are prepared to be patient and negotiate you can really pick up some good property deals in Spain at the moment. That’s not to say the current asking prices are realistic, many of them aren’t, but there are still bargains to be had if Spain is where you’ve chosen to retire or relocate to.
But I don’t think it’s the property prices that’s the problem – I think it’s the increased cost of living, weakness of the pound against the euro and the tougher tax laws the Spanish government are enforcing that’s putting people off. The pound has almost reached parity with the Euro now – that makes everything much more expensive and that comes on top of already significant inflationary increases on food, petrol, energy and so on.
Why go to Spain and gamble on their dodgy property market, I say dodgy because no-one really knows what it’s going to do in the future be no better off financially than you are in in UK for a bit of sunshine and an ‘Alice in Wonderland’ bureaucratic system?
The appeal of Spain has definitely lost its lustre and that is why so many people are simply returning home.
I agree on the whole. To be honest I doubt if certain parts of Spain had any lustre in the first place – it was more herd mentality that drove some people over there. However there are other parts of Spain well worth exploring, and of course to live in Spain doesn’t mean you have to buy in Spain.