Spain homes are good to buy right now

As the UK housing market continues to head south, it seems there are still a lot of people looking even further south…to Spain, where that country’s property sector is still showing signs of growth, albeit much less than for a decade.

One market expert, Mark Stucklin of Spanish Property Insight doesn’t see much "speculative herd buying" but instead people who genuinely want to own a home in the country busy "doing their research".

There are also reports of Brit first-time buyers snapping up some of the bargains on offer in Spain because the UK market is still full of over-priced homes, sky-high mortgage deals and a minimum of a year’s wages needed for a deposit as lenders apply further squeezes to the market.

While sterling has declined by 15% against the Euro in the last year, the discounted prices in some areas of Spain “cover” the currency “loss” and still give a further 15% discount below the valuation that will get a half decent mortgage.

The medium term forecast for the UK seems to indicate house prices going up by 25% in the next five years, so it’s not going to be easier for first time buyers to get on the bandwagon. In the same period Spanish home price are expected not to grow until end of 2010 by which time the discounted key ready surpluses should have been taken up and the unsold stock of gone bust developers shared among survivors in trade acquisitions.

Spain has a lot of lifestyle or retirement appeal, and as its tourism is still growing year on year there is likely to be an ongoing demand for renting private villas and apartments. But buyers should beware the traps of the glory years. Buy a bargain resale in an established Des Res area, from a reputable source such as a Spanish bank or well established local estate agency.

If you want a new place, try a key ready reduced price offer from a developer, but first check the latest buying situation on www.eyeonspain.com where actual buyers report on their experiences with Spanish developers.

Before you make a move do lots and lots of research on the internet…always good advice, but now even more so given the current parlous state of the UK, American and Spanish property markets.