Re: Re: Should we be buying in Spain in 2011?



The best advice I can offer you is consistent with all my other postings on this forum. If you buy a property in Spain now it will devalue by about 15-20% at least over the coming 2-3 years. You will also have great difficulty selling it again should you decide it was a mistake.
If you are in doubt use your common sense and look at the wider economy of Europe and the rest of the world. Economic decline is continuing apart from Germany and the far east. Even in the US the prospects are poor for the medium term.
Spain is lagging behind the rest of Europe and drowning in sovereign debt, unemployment is catastrophic and rising despite austerity measures. The banks cannot lend except on their massive repossessed housing stocks which produces a stagnant and falling market.
All these factors and more such as high and rising taxation, buying and selling costs, death duty even for a spouse add to a further declining and unattractive property market over at least the short to medium term.
Keep your capital in a decent investment portfolio and rent long term or whenever you come to Spain. As I have said before the market will bottom when Spain’s economic fortunes change for the better. When that will be is anyone’s guess.