The Truth About the Spanish Property Market

This article will try to get to the bottom of the current situation, explaining the pitfalls and how to avoid them and identify the opportunities.

There are many so called experts and commentators who from time to time publish articles which in truth have little to do with expert advice and are little more than opinions which they use to promote themselves. One such article published in March 2010 from a Spanish property information web site run by Mark Stucklin, author of the Spanish Property Doctor column in the Sunday Times said " The Spanish Property Bust is dead; long live the recovery". I actually posted a comment saying that I didn't see any evidence for that claim.

Does that now make me an expert? probably not, even though with hindsight my judgement at the time was closer to the truth? In today's current economical times I would hate to be an expert, because predicting what will happen in any sector is surely harder than ever before. What might be an advantage though is that I work at the coal face and meet with other estate agents working in Spain on a regular basis. We see first hand what is going on; we deal on a daily basis with both the buyer and the vendor and know how tough it is at the moment.

Two of the strongest emotions which control us as human beings are greed and fear and these two emotions are strong influences on our decision making. These emotions are having an impact on the decision to buy property, not just in Spain but in many other parts of the world. Fear as to what will happen within the Euro zone, instability of work and the effect of any investments because of these uncertainties.

These fears and the implications can affect both buyers and vendors alike. Some vendors have started to think "I'd better get out whilst I can!" in almost the opposite of the gold rush which probably made them buy in the first place. Some potential buyers are nervous to make a decision for the very same reasons and still believe that prices have further to fall. Or that more time is needed to make sure the problems around the world will not leave them exposed.

On the other side of the coin are the investors or buyers who see this as an opportunity with properties available at 50% of the value of the peak a few years ago. The greed factor comes back into play and for some the gamble could pay off very nicely. For others the dream of owning a holiday home in the sun has just become affordable again and the investment element is of little consequence.

The emotions of greed and fear need to be discounted as far as possible to avoid making mistakes of judgement. A seasoned investor will already understand the risks involved; they will look for value and will be in a position to react quickly in buying or selling of their investments even if it will make a loss. Investors do not buy just because it's cheap but because it's good value and has potential to add value.

We see evidence on a daily basis with the enquiries we get of potential buyers being attracted solely by the price. Once we have listened to their requirements it is soon clear that not enough thought has been given. The glut of Bank Repossession Properties seems to be attracting substantial interest at the moment. These properties are normally only suitable for those who already know what they are looking for, due in large to the lack of information available from the Banks and where the buyer can be certain that the property is being offered at below market value.

The best advice I can give is to spend more time researching for a good estate agent rather than searching for properties on the internet or in magazines. Take your time to find a good estate agent who will listen to what you want and let them help you to find a real bargain, which is suitable for your needs. Be prepared to pay a fair price for their expertise and focus less on the big headlines which are promising everything and anything just to gain your interest.

I will be writing a series of more specific articles in the near future on the benefits and disadvantages of the options available within the Spanish property market which I hope, you will find both informative and enjoyable.

Article Source: http://www.articlesbase.com/international-business-articles/the-truth-about-the-spanish-property-market-5051082.html

Robert Scott-Jones is a professional Real Estate Agent, Owner of Coastland-spain with offices in Villamartin, Costa Blanca.

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