Much has been said of the oversupply problem in Spain, that so much new property has been built in Spain it will take years to be absorbed by natural market forces and demand.
However, this highlights one thing for people interested in buying in Spain: Opportunity! If any industry suffers oversupply the natural result is that the price goes down.
Supply and Demand
In Economics at school we learned that supply and demand was all about how much money chases how many products. In a nutshell if there is only one product on offer then ALL the money is needed to buy it. If there are two products, then half the money and so on.
In Spain there are many many properties on offer which means that you need less money to buy any one of them.
When to buy
In previous posts we analysed whether we should wait to buy or take the plunge now. We suggested taking the plunge now. This is not to say that you don't look before you leap! It also shouldn't mean that you start to view so much property that you are unable to decide.
The truth is that if you have some money to invest and you are interested in a property for your own use, there has probably never been a better time to purchase.
However, this highlights one thing for people interested in buying in Spain: Opportunity! If any industry suffers oversupply the natural result is that the price goes down.
Supply and Demand
In Economics at school we learned that supply and demand was all about how much money chases how many products. In a nutshell if there is only one product on offer then ALL the money is needed to buy it. If there are two products, then half the money and so on.
In Spain there are many many properties on offer which means that you need less money to buy any one of them.
When to buy
In previous posts we analysed whether we should wait to buy or take the plunge now. We suggested taking the plunge now. This is not to say that you don't look before you leap! It also shouldn't mean that you start to view so much property that you are unable to decide.
The truth is that if you have some money to invest and you are interested in a property for your own use, there has probably never been a better time to purchase.
At Amazing Resorts we suggest people research the market well, request sound advice from us and then come out to look. Be prepared to make offers but remember, offers should be made with a view to completing quickly. The only reason prices have dropped or developers are willing to negotiate is because they want, or need, to sell.
One man's meat...
It might sound unfair or even callous but one man's meat is often another man's poison. In this overseas market there is an abundance of properties bought by people who may now be overstretched. This forces them to sell at almost whatever price they can get. They can no longer afford the luxury of waiting for the market to "come back". This is where you can act and secure a great deal.
Bank "Repos"
This is a strange area. Is it worth looking at bank repossessions? In many ways it is. However, if you had several houses and couldn't keep up with the payments on all of them, would you let the best ones be repossessed or the worst?
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With this in mind, Amazing Resorts concentrates more on bank stock that is the result of debt / equity swaps. These are usually a smaller collection of units within an existing development. They can consist of only five or ten units that the bank has taken from the developer to pay off some debts and provide cash flow to him. These are by far the best units because the bank will come in and choose.
if you were the bank and could choose some property, would you go for the best or the worst?
Exactly.
One man's meat...
It might sound unfair or even callous but one man's meat is often another man's poison. In this overseas market there is an abundance of properties bought by people who may now be overstretched. This forces them to sell at almost whatever price they can get. They can no longer afford the luxury of waiting for the market to "come back". This is where you can act and secure a great deal.
Bank "Repos"
This is a strange area. Is it worth looking at bank repossessions? In many ways it is. However, if you had several houses and couldn't keep up with the payments on all of them, would you let the best ones be repossessed or the worst?
.jpg)
With this in mind, Amazing Resorts concentrates more on bank stock that is the result of debt / equity swaps. These are usually a smaller collection of units within an existing development. They can consist of only five or ten units that the bank has taken from the developer to pay off some debts and provide cash flow to him. These are by far the best units because the bank will come in and choose.
if you were the bank and could choose some property, would you go for the best or the worst?
Exactly.
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