Spanish Property Insight › Forums › Spanish Property Forums › Spanish Real Estate Chatter › Press articles about the Spanish property situation › Re: Re: Press articles about the Spanish property situation
Property salesmen such as Chris McCarthy will always tell you it’s the right time to buy. That’s their reason for being. It’s also the reason you should seek advice elsewhere from independent voices if your at all interested in buying a Spanish property. Hard to find I know. Even Mark is compromised.
People are easily sucked into a market which offers paper discounts. The truth is property discounts are only a marketing tool and an illusion. Property was grossly overvalued in the first place so discounts now are meaningless. Many are convinced by the seemingly bargain basement idea and the expectation that in a few years they will double their money. In truth they are being conned.
I say that because of the expectation in the markets that Spain is very likely to be bankrupt soon and will need a bailout from the EU. Further down the line it could well be another Greece and leave the Eurozone altogether. Also it’s at least a 50/50 possibility that the Euro may collapse and the EU banking system along with it. Unemployment is catastrophic and getting worse, civil unrest is inevitable as further austerity and decline is forced upon the nation.
As long as these possibilities even exists nobody in their right mind should invest in a broken, uncertain market such as Spanish property. Ordinary people with life savings are not market gamblers. To be successful in that field you require a great deal of knowledge and experience with very deep pockets to stand the inevitable losses.
Buying property in Spain is at the moment tantamount to a pure market gamble. Do it at your peril. You may win in a few years after paying huge buying taxes and annual costs, but in my view losing your shirt is far more likely.
Of course you can always use it for holidays and try and rent it out but risking capital in an uncertain world is like paying for your holidays costs upfront for twenty years.
I heard a lot of similar arguments in the early 90s. Don’t get me wrong I can understand your advice for “someone looking to invest”, but for someone who may be thinking of a home for many years, it makes sense to buy when prices are low?
I’ve discussed this with my partner (who doesn’t speak Spanish) but we both feel that we need to buy somewhere to retire to at some point (it won’t be this year though) and that Spanish prices are far far lower than the south of England. We may end up in the north of England, but Spain looks very enticing.