Everyone loves a bargain and if there is one good thing to come out of the recent crash, it is that there are plenty to be had on the property market at this moment in time.
Prices of long term rental property in Spain have dropped dramatically and whilst home owners and investors alike, whose investments have been harpooned into negative equity, are finding it rather difficult to find the bright side in any of this, individuals with money left in their pockets are flocking to Spain to see what deals there are to be had.
You would be forgiven in thinking that these were hard-nosed, professional investors; the story is actually quite different. According to recent findings, UK buyers are traveling to Spain in droves to seek discounted properties for holiday or retirement homes.
These second home-buyers are currently able to take advantage of discounted prices of up to 40% and in some cases even more, according to Assetz Spain who are quoted to have had an 150% increase in enquiries for holiday and retirement investment opportunities in the last 3 months.
Stuart Law, chief executive at Assetz, has said, “They are not primarily buying for investment purposes, so are less concerned about the short term performance of the market and potential capital growth.”
He added, “Professional investors seeking solid returns, on the other hand, are concerned that the market could still have further to fall, and we certainly believe that holiday letting rental income could be severely held back for years to come by oversupply in the tourist hotspots.”