Brit buyers miss out on Spanish bargains

British buyers are losing out on the amazing property bargains in Spain as the Dutch show more courage, the Belgians more muscle and even the French recognise a good deal when they see one.

These Euro-zone countries do not have the adverse currency problems of would-be Brit buyers, who now have to recognise that the once mighty Pound is worth just one Euro and is unlikely to do better than this for some years. The McBroon fiscal foul-ups have allowed sterling to decline by 30%, removing the long-held extra buying power when it comes to getting a home in sunny Spain.

But there is still a chance for Brit Over-50s, fed-up with the general decline of the UK, to realise their dream of a full-time or part-time life in Spain. In many cases the current asking prices are showing discounts that more than compensate for the currency exchange losses and with prices bottoming out right now, there is a good chance of an equity gain in future years.

The Spanish property market is bouncing back as the banks sell off their liquidation stock of key ready homes taken from cash-strapped developers in exchange for unpaid bank loans. Spanish families are getting an increasing share because they are on the spot when the best deals come up – like La Caixa bank selling 120 apartments over a weekend and Santander selling 24 properties in a single day.

But the Dutch, Belgians and French have organised themselves and are finishing up with far more bargains than the Brits who seem shell-shocked by the McBroon machinations and its effect on their life plans. They browse the Spanish bank repossessions on specialist websites like PropertyInSpain.Net, make excited inquiries but then, seemingly, decide to wait a bit longer in case the prices drop further.

A bargain costing EUR 100,000 (discounted typically by 30%) needs a cash commitment of EUR 30,000 to cover deposit and buying costs while low interest mortgage payments can be offset by summer rentals if necessary. If the market returns in 3-5 years the recovered equity of 30% equates to the initial buying costs.

That’s the way the other European buyers are seeing the deals and they are enjoying the benefits right now as prices are bottoming out. That might be the signal that gets the Brits off their butts and into the buying fray?