Spanish Home Seeker has found evidence that the U.K media is to blame for the lack of confidence in the property market. both here and back in England. I hear some of you saying "no sh*t sherlock!" but this is a trend particular to the english press. Other countries' papers do not rubbish their own country the same. Obviously there are concerns still over finance and access to it but many Brits still want purchase here in Spain. In fact figures from Primelocation.com support the fact that nearly 60% of U.K residents are searching an overseas holidays home.
However although there are people who want to buy they are holding off on there purchasing or reigning in on their choice of property ie. from a villa to an apartment but the interest is still there with google showing massive search figures for overseas property and related keywords. Of course one of the main stumbling blocks for people purchasing property abroad is the necessity for many to sell their U.K home and for others it is the strong Euro compared to the Pound. Certainly the exchange rate is nowhere near as favourable as it was 2 years ago but with prices down from 20%-50% in some areas this negates this somewhat.
Funding is another issue which people are clearly worried about, the Spanish lenders have severely limited their lending similar to their U.K counterparts but finance is still available and interest rates are still low. As I have said before, for those in a position to buy the bargains are there and in areas like Calpe prices haven't got much further to drop. Certainly when you can buy an apartment for €80,000 and rent it all year round for €120 a week your return on investment will be 4 times what you would get from a bank and you have the potential for capital growth. This is when investors will come back into the market.
Spain still has a lot to offer and if you are thinking of a home here then you be wise to start looking now. The boat waits for no man.
Spanish Home Seeker Director Ian Raistrick.
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