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Spain still number one destination for brits buying abroad

Despite recent reports of a potential Spanish property market crash and figures marking an overall slowdown in some areas of the country particularly the Costas. property hotspot reports show that Spain still remain the top destination for Brits buying overseas property with 27% of all enquiries relating to Brits buying in Spain.

In light of these market conditions, currency experts are urging Brits considering purchasing Spanish property or those who already own a property in the country to be aware of how the Spanish market is changing and how this can best be used to their advantage.

According to currently experts, whilst some areas of the Spanish Costas are certainly cooling and seeing market corrections due to over supply, at the same time less traditional inland regions are becoming more popular with savvy buyers. Prospective buyers are forced to be more realistic about prospects in the Spanish real estate market, holiday home buyers and investors alike, will have to look for value rather than creating it artificially. Cut through the current hype and think carefully about the property you are buying in order to make the most of the current market conditions. Only certain areas are suffering a slump due to over supply whilst others still have much to offer.

Holiday homer?
For holiday homers the oversupply in some Spanish markets can lead to real Bargains as property stick and investors look to extract themselves. If you are buying a holiday home in Spain, don't be put off by the recent reporting of a potential crash. All markets go though correction as long as you are a long term investors (5-10 years) you can still buy with confidence if you buy wisely.

An abundance of low cost airline routes, two hour flight time and the great weather means that Spain will always be a favourite with British buyers. Even for those looking for capital growth in the short term there are plenty of opportunities to be had in the lesser know Costas, in the cities and inland. Coastal regions like Tarragona and inland areas like Jaen and Cordoba still provide excellent value as do some cities. In Barcelona for example, property prices are rising at their fastest pace ever.

Or property investor?
Over the last ten years the western world has enjoyed the biggest property boom in its history, creating a whole generation of potential property investors. In fact over the last decade house prices have boomed in almost every developed market with the exception of Germany and Japan. House prices in Spain, the UK, Ireland, Australia, Netherlands and Sweden have for example all risen by more than 50% and the value of property across the US has climbed by 30%. What this does mean however, is that with developed economy markets at their current height, investors are increasingly turning their attention away from traditional markets like Spain and to the emerging markets such as those on the eastern bloc.

Its easy to see why investors, in particular are turning their backs on the traditional Spanish hotspots and examining international markets which are at an earlier stage in their growth cycle. In August 2005 the national median prices for property sold to overseas buyers in Spain was approximately 250,000. In Bulgaria the average prices was closer to 30,000.

Whether you are buying a holiday home or a property specifically for capital growth - no one likes to make a bad investment. We've seen a big increase in property prices and values in some areas of Spain over the last 20 years. There should be no surprises in a market correction whenever it occurs, supply has outstripped demand at the moment and market forces will probably dictate value over the next year or two.

Buyers should remember that their choices of where to buy really depends on why you are buying and on the degree of risk that you are willing to accept. Wherever you do decide to buy, be it Guildford or Granada its imperative that you do your research and ignore the hype

Selling up?
While owners of property in the saturated markets could be well advised to hold tight for a year or two if possible and let the market come through this cycle. For those who must sell now, currency experts are advising owners to avoid just automatically turning to their bank to transfer their assets home. Shop around and consider using a currency broker, not only will you save money on the exchange rate ensuring you receive the maximum amount possible from the sale of the property, you will also avoid the many costly banks fees often charged when you bring your money back to the UK.

A recent mystery shop showed that high street banks were charging up to 4% more to exchange money. For someone changing 200,000 into sterling for example this would mean you'd receive around 8,000 less if you used your bank to bring the funds home rather than a currency specialist.

If you are forced to sell up and repatriate your wealth, don't let the banks cash in! Shop around and compare the rates given by your bank with an established currency broker to make sure that you receive more of your money.

Contact us today for more information.




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