Okay, you’ve been hearing this for the last 5 years or so, as property prices in Spain went into freefall and the parachute persistently refused to open and ensure a safe landing. However, now that Sterling is strong against the Euro, this really is the best time to buy in Spain, because not only can you snag a bargain property which probably won’t need any refurbishment at all, it will cost you less to maintain it, as your Euros will go much further.
I’m not a ‘What If?’ kind of girl. I take opportunities as they arise, and never look back in anger or regret, because it’s a pointless exercise. We bought our property in early 2008, just before the economic slump, and at a time when property prices were unsustainably high. We paid €157,000 for our 2 bedroom garden apartment on La Finca, which, at the prevailing exchange rate of around €1.34 to the Pound Sterling worked out to around £116,700. We fell in love with the property at first sight, it was within our budget – just – and we had enough from the sale of our house in the UK to buy without a mortgage and leave us comfortably off, so that’s exactly what we did.
Today, almost 7 years to the day since we signed on the dotted line, the exchange rate is pretty much identical at €1.345 to the Pound. The difference is, we could now buy the same property for around €100,000, or £74,300. That’s over £40,000 less than we paid, but this isn’t a whinge about how much we’ve ‘lost’ on our property – it’s a clear illustration of the economic sense of buying in Spain at the moment.
Our 7 years of happiness in Spain are way beyond price, and that’s why I’ve done the sums here to encourage others. What goes down also goes up, and vice versa, and while nothing is certain, it’s likely you’ll be much better off in the long run if you buy in Spain while property prices are still low and the Pound is strong against the Euro. And even if your home in Spain doesn’t perform as expected and increase in value, you still have somewhere to go where you can enjoy your investment. You couldn’t do that if your money was sitting safely in the building society.
Don’t take my word for it though. Steve Hall of This Is Spain is highly experienced in this sort of stuff, and his latest article clearly illustrates that there are real bargains to be had. In Algorfa, which is a lovely village 10 miles inland from Torrevieja on the Costa Blanca, €30,000 – €50,000 (£22,300 – £37,200) will give you a wide choice of two bedroomed apartments, most with the use of a community pool. So, what are you waiting for? Now really is the best time to buy property in Spain!