There are five good reasons to buy a prime investment property in Spain in 2013 and it could now offer the best investment in the world.
- Prices are the lowest for 12 years
- Prices fell most in the EU last year
- Banks are out of denial on high prices
- Most bank toxic property dumped in Bad Bank
- World’s best investment potential
Peak to present property prices in Spain are down by an average of 44%, but there are brand-new, key ready homes at discounts of up to 70% that are quality build and have full 21st century specs. European Central base rate lowest ever at 0.5%, so mortgages below 2% interest.
The real estate market has now been split into two sectors:
Sub-prime property – The worse located, unwanted apartments have been dumped into the EU-demanded Spanish Bad Bank to be sold off with heavy discounts over the next 15 years.
Prime property – The best located, most desirable apartments and villas have been retained for immediate sale by Spanish banks who need the cash to rebalance their depleted coffers.
Ben Walker, of leading Spanish bank property brokers, Walker Property Spain says it’s a “no brainer” that international buyers would prefer to buy a superior prime property at a hefty discount compared with a sub-prime property that even the bank owners don’t want – no matter how cheap it might be. “Investors are now discovering the quality build, specs, location and local amenities of the prime stuff matches their buying criteria.”
Some Spanish bank bargains with sea or golf views are on offer at around EUR 1,000 per sq metre – that’s around a quarter of the original price in some prime Costas. Sub-prime property peaks at €900 per sq metre.
Spanish real estate expert, Mark Stücklin said: “In a world awash with central bank liquidity, menacing inflation, low interest rates, and risible returns on savings, ever cheaper Spanish real estate is starting to attract the interest of increasing numbers of international investors.”
Author | Ben Walker, Walker Property News