Low prices in Spain are good news for investors and second home hunters

[Nicholas Wallwork]

Low property prices in Spain mean that there are opportunities for investment buyers and those seeking a holiday home to enter the market, it is claimed. Banking losses resulting in the Iberian nation asking for help to recapitalise its banks has caused concern and aided a decline in property prices but for bargain property hunters, [...]

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[SaburovDesign]

Yes. This information is right, the company I'm currently working with is interested in Spanish property not only but also for that reason. Lower prices mean more profit in case of commercial use. And, of course, all the yachting infrastructure also

But does that mean increasing in invesment interests and cash flow? uh huh

 

[halley decosta]

Agree with the above information,it is true.This prices are lowest for 10 years,there is gradual fall in the prices.Banks demand recapitalization as it is out of denial on high prices.In the last few years Spain property rates down by 40 - 50% which attracts the interest of foreign visitors.Lower price in property rates will automatically generates more profit.And also there are lots of investment options available for visitors to invest near by Costa Blanca region.

 

[DC]

It is interesting because
banks are being tight with mortgages, offering lower loan to values
interest rates are still pretty high even though euribor is 0.5%, the banks are offering finance at 3.75% above this, in the past they were offering a spread of 0.5% over euribor, so they are making 3.75% above what they are borrowing at. Or more
Plus they are stiill sitting on alot of pretty awful real estate. The banks are really the cause of this situation and they are really not doing a great job, it can be said this globally.
The cause of this crisis with politicians and the ones who have been shamebolic in the way they treat the public.

 

[DC]

but there are deals out there, if you know what you are doing and have a credible business plan.

Better to bring the money in from outside. As cost of mortgages and stuff here, is high.
Set up fees, government taxes, notary fees, bank lawyers fees, registry fees, etc can be 4 to 5% of the loan amount. Is high.