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there was a comment few weeks back about Grenada and St Kitts granted citzenships for investment... spain now does the same thing... Look up any real estate and spain there are bargins to be had!
Costa del bargain: Is now the time to pick up a dream home in the Spanish sun?
As prices have dropped 30% and the government is trying to attract overseas buyers, we look at prospects for the property market in Spain
By Lana Clements | Yahoo! Finance UK – 22 hours ag
RELATED CONTENT
Sun, sea and sangria has long tempted Brits to spurn the motherland and live out a life in the warmer climes of Spain.
In recent years, however, the dream has soured - as Spain's economy faltered and the property market crashed.
But the Spanish government is now attempting to breathe life back into the market.
With prices dropping a staggering 30%, according to analysis by Goldman Sachs, could now be the time to pick up a bargain in the sun?
Golden residency up for grabs
It’s hoped that an impending law that will grant automatic residency to non-EU nationals who buy a property at €500,000 or more will bolster foreign investment, particularly from Russian and Chinese buyers.
“There is no doubt that this new investment option will bring much needed relief to that difficult-to-sell middle-end of the market– properties which the locals can’t afford,” said Angelos Koutsoudes, of the Overseas Guides Company.
Most critics believe the scheme would have been more meaningful if the bar had been set lower – it had originally been pitched at €160,000.
“In Mallorca and Ibiza we do not have too many buyers from outside the EU and I would be surprised, if this new measure becomes law, if we suddenly start attracting many buyers from outside our usual target audience,” commented Daniel Chavarria Waschke, managing director of Mallorca and Ibiza Sotheby’s International Realty.
New rules and regulations
Aside from the so-called golden residency, the Government has introduced compulsory Energy Performance Certificates from sellers and landlords.
And non-Spanish residents who live in the country more than six months a year are now obliged to declare more than €50,000 of overseas assets.
The requirement has given overseas buyers jitters that it could mean a tax targeting foreigners’ wealth is imminent.
Prices could have further to fall
Meanwhile, with youth unemployment running at an eye-watering 60%, it’s evident that the economy isn’t out of stormy seas yet.
And though Spanish property prices have fallen heavily, it seems that they are set to dip further still.
Analysis by Goldman Sachs found there is an overhang of properties of between 700,000 and 1 million and forecast a drop of a further 10%.
The OECD also recently ear-marked the Spanish property market as over-valued, and ratings agency Standard & Poors said it expects house prices to fall around 5% more.
Watch out for homes built illegally
There are still lots of repossessions on sale which were built at the height of the boom and didn’t have the correct planning permission to go ahead, warns overseas property specialist Simon Conn. Buyers who pay cash for these illegal homes could risk being left out severely out of pocket.
“We are seeing increasing interest in Spain,” he commented. “But at the moment it’s a buy for those who want to live there and enjoy the lifestyle, rather than take advantage of investment opportunities.”
“Among the thing to consider is your exit strategy. If you needed to sell, who would buy it and how much would you get for it?”
Costa del bargain: Is now the time to pick up a dream home in the Spanish sun?
As prices have dropped 30% and the government is trying to attract overseas buyers, we look at prospects for the property market in Spain
By Lana Clements | Yahoo! Finance UK – 22 hours ag
Yahoo! Finance UK - This five-bedroom villa is for sale in Mallorca prices at approximately £7.7million (Sotheby's International Realty)
RELATED CONTENT
- Article: Spanish firemen and locksmiths refuse to evict homeownersTelegraph - Fri, Feb 22, 2013 13:17 GMT
- Article: Spanish unemployment climbs to new recordTelegraph - Thu, Apr 25, 2013 12:01 BST
- Article: Spanish PM promises 'encouraging' jobs figuresTelegraph - Sat, Jun 1, 2013 17:26 BST
Sun, sea and sangria has long tempted Brits to spurn the motherland and live out a life in the warmer climes of Spain.
In recent years, however, the dream has soured - as Spain's economy faltered and the property market crashed.
But the Spanish government is now attempting to breathe life back into the market.
With prices dropping a staggering 30%, according to analysis by Goldman Sachs, could now be the time to pick up a bargain in the sun?
Golden residency up for grabs
It’s hoped that an impending law that will grant automatic residency to non-EU nationals who buy a property at €500,000 or more will bolster foreign investment, particularly from Russian and Chinese buyers.
“There is no doubt that this new investment option will bring much needed relief to that difficult-to-sell middle-end of the market– properties which the locals can’t afford,” said Angelos Koutsoudes, of the Overseas Guides Company.
Most critics believe the scheme would have been more meaningful if the bar had been set lower – it had originally been pitched at €160,000.
“In Mallorca and Ibiza we do not have too many buyers from outside the EU and I would be surprised, if this new measure becomes law, if we suddenly start attracting many buyers from outside our usual target audience,” commented Daniel Chavarria Waschke, managing director of Mallorca and Ibiza Sotheby’s International Realty.
New rules and regulations
Aside from the so-called golden residency, the Government has introduced compulsory Energy Performance Certificates from sellers and landlords.
And non-Spanish residents who live in the country more than six months a year are now obliged to declare more than €50,000 of overseas assets.
The requirement has given overseas buyers jitters that it could mean a tax targeting foreigners’ wealth is imminent.
Prices could have further to fall
Meanwhile, with youth unemployment running at an eye-watering 60%, it’s evident that the economy isn’t out of stormy seas yet.
And though Spanish property prices have fallen heavily, it seems that they are set to dip further still.
Analysis by Goldman Sachs found there is an overhang of properties of between 700,000 and 1 million and forecast a drop of a further 10%.
The OECD also recently ear-marked the Spanish property market as over-valued, and ratings agency Standard & Poors said it expects house prices to fall around 5% more.
Watch out for homes built illegally
There are still lots of repossessions on sale which were built at the height of the boom and didn’t have the correct planning permission to go ahead, warns overseas property specialist Simon Conn. Buyers who pay cash for these illegal homes could risk being left out severely out of pocket.
“We are seeing increasing interest in Spain,” he commented. “But at the moment it’s a buy for those who want to live there and enjoy the lifestyle, rather than take advantage of investment opportunities.”
“Among the thing to consider is your exit strategy. If you needed to sell, who would buy it and how much would you get for it?”
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