Distressed in Spain is an opportunity?

A plethora of “distressed” or BMV (below market value) property prospects are being promoted by those real estate agents who are still active in the Spanish market. Should buyers consider this as an opportunity or something to steer well clear of?

The reasons for this stock of properties becoming available are many, varied and entirely plausible. However, the situation is dire with daily increases in number of properties coming onto the distressed market. The quality varies, but the depth of the stock from individual villa properties to entire developments makes for a very dynamic market.

Demonstrating all the attributes of a “buyer’s market” the only thing lacking in Spain currently to support that description is the buyer's' volume of three to ten years ago.

Spain is suffering as a result of various issues that are special to itself. In addition to the “credit crunch” in all its manifestations, Spain’s property market has seen:

• Developers collapsing
  
• Excess supply – as a result of misjudged property expansion
  
• Off plan purchasers being unable or refusing to complete
  
• Screwball valuations
  
• Mortgage defaults
  
• Dodgy Town Hall officials
• High purchase costs.

But then again, looking for a reality check from the world’s financial institutions –  Northern Rock, Lehman Brothers, HBOS, Bradford & Bingley and others  - the world’s stock and commodity markets, the poor performance of UK pensions, the UK base rate, the Euribor and Investment and unit trusts – could we really trust our so called financial professionals to park our car without scratching it! The party has been screwed up by greed and short-sightedness, presided over by McBroon & Co who have taken Britain from the fake "boom" to a nation bust in spirit and wallet... 

It’s high time for us to question those in whom we place our trust. We should be more hands-on in terms of assessing risk for ourselves, seeking out opportunities and seizing those prospects that tick our boxes.

This is not the first time, and we suspect will not be the last, that Spain, or more likely various enterprising property investors, will see the glimmer of a ready profit from the current distress in Spain’s property market. There's a good selection of distressed and Spanish bank repossessions at www.propertyinspain.net

Based on content from www.distressedpropertyhandbook.com a newly published guide which aims to provide investors with clarity as to the bargain prospects that are becoming increasingly available in the Southern Spanish property market.