Spain is a great place to consider when it comes to investing into property with short, mid and long term gain in mind.
A lot of people have been unwilling to invest money in the property market since the global financial crisis and economic climate took a turn for the worse in 2007.
The property sector was hit badly, never seen before scenarios began to appear; many people were left unable to afford their mortgages, people could not get mortgages and banks were not willing to lend money – in summary the confidence in the property industry was at an all time low and over the past 6 years people have been extremely cautious about investing their money.
Spain has been one of the worst affected nations since the recession began and property prices are now at an all time low after the boom of the late 1990′s and early to mid 2000′s.
The banks in Spain have repossessed thousands of properties from builders, developers and from people unable to pay their mortgages or who have simply locked the doors and headed back to their country of origin.
Whilst this all sounds like doom and gloom, there have been some huge positives over the past few years which makes Spain a very attractive place to consider property investment.
- Tourism – Despite the struggles of the past few years, regions such as Costa Blanca have reported record numbers of tourists flying to Spain to holiday. Whilst people may not be as loose with their spending as they were ten years ago, the fact that more and more people are heading to Spain than ever before is a good sign for property owners wanting to invest for letting purposes.
- Price – The price of pre-owned, new builds, repossessed and owned property is lower than ever before. Many people took mortgages prior to the crash and cannot afford repayments. Due to the building boom of the peak years there are literally thousands upon thousands of property owners all looking to sell their property simply to pay off their mortgage. This means you can get a fantastic deal and make huge savings on the average market price.
- Long Term Returns – As with any period of economic downturn there is always going to be a time when the economy starts to pick up and reward property owners who have bought a property at rock bottom price . Many people who bought houses in the UK during the 1980′s for next to nothing saw the prices rocket in the 1990′s and were able to cash in due to demand and make massive returns on their investment.
- Price Increases – Property prices have in Spain have leveled out recently and the signs are that they will start to increase again very soon. Why wait and pay more in 6 months; you will be kicking yourself if you have missed out on a genuine bargain only to see someone else reap the rewards.
Article Source http://www.kmpropertysales.com/reasons-to-invest-in-spain/.
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