Are Speculators OUT, Home buyers IN… for a big treat in Spain?

It´s a big question. My opinion may surprise you… (written by Anthony)

First to say, I actually agree to a large extent with Pedro Sanchez. However, I do not think he is offering the best solutions… yet. Mass cheap housing will only lead to more slums and criminal strongholds.

No doubt, there is going to be a significant shift in the Spanish housing market. Most of my team have foreseen such as shift coming for many months.

I´ve been in the property business in one way or another for more than 30 years, so I obviously hope to see a vibrant market.  But NOT at the cost to the lives that inflated prices have engendered.

The last thing anyone wants to see is…

… a drop in prices. This would not be fair to so many who have invested their lives in having homes here. However, we also do NOT want to see a further increase, which frankly has been ridiculous over the past 5 years. It has become almost impossible for young people, low income families and older people in need of care to buy.

An example. There is a young Spanish couple in Marbella who are working for us part-time, mainly to boost their income so that they can afford to have a home there. Both professionally qualified., even so, they can barely afford to rent a home there, let alone buy one.

That can not be right. It is heartbreaking to see. No business has come their way yet, but it will, given time. As a father of four, none of whom are able to buy without my help, I hope to suggest some practical, attractive solutions.

Another example from personal experience: A few years ago I bought, reformed and resold six properties on the Costa del Sol. Only small projects: buying at around €80-120K, spending €20-25k to reform, and selling at a low price with little or no profit, often to young people. It does not make me a hero, it only makes me sad.

Why… what happened?

In the past five years these properties have literally doubled in price (noting that I use the word “price” not “value”), meaning that young people and low income families can no longer afford to buy them – or anywhere else for that matter!

I believe we will see a stabilization.

Not a significant drop, but no further increase. If you have bought a home in which you genuinely intend to live, that should not worry you. As for “speculators”? Well, they “speculated”! I have no doubt they will get their money back eventually, but probably not just yet. Sit back and relax, your investment is safe.

So… what do I think Pedro Sanchez is basically saying? (in my words, not his!)

If you want to live with us in Spain, you are very welcome. If you want to enjoy our culture and also contribute your own, you are equally welcome. We love that. If you are only speculating for a fast return, your days are over. We intend to care for all people who share our Country, regardless of race, original nationality or color.

This of course assumes his legislation will pass? We shall soon find out 🙂

Racist? No – not if you want to buy a Home!

Sanchez is in danger of being accused as “Racist” against English speaking countries, because none (except Ireland) are part of the EU. His measures will exclude UK, USA, Canada, Australia, New Zealand etc. Many of these nations have bought prosperity to Spain.

I believe this will continue, but to a lesser extent… just for a while.

The main difference is that families will be encouraged to buy Homes at a fair price, and speculators excluded. I personally applaud this, although I know that many of the Agents we work with do not.

The good ones will adjust.

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