Spain is the last large world economy to find itself still mired in recession. Its GDP continues to shrink prompting Standard & Poors to put the country on a negative outlook in December last year. 

The agency has little confidence in Spain reducing its Government deficit from 11.4% of GDP to the eurozone limit of 3% and could even apply further downward pressure to its ratings should the Spanish authorities not take aggressive action to tackle its weak economic growth and near 20% unemployment.

What does this mean for the investor?

Due to decades of poor planning control and over building, Spain has a near-banckrupt construction sector.  But the good news, is there is so much property available in Spain that any serious investor is King or Queen: everyone wants to be nice to you!.  

 

Current Below Market Value Deals should be 50% or better: period! So don't be pressured into talking about higher purchasing prices and be prepared to walk away!

Be careful however, when talking property price as Spain does not have a single, simple way of calculating market value (it uses one of three methods???)!  Be sure you are being offered a genuine 50%BMV by telling the vendor or agent you will seek market comparison and advice from more than one bank.

Contact us to discuss where the best buys really are and how much you should be offering. 

Source: Property4Media

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