Spanish homes at below market value prices

August 10, 2008

The key to a good property investment is to buy at the lowest possible price, essentially below the prevailing market value and then enjoy maximum profit at the time of eventual sale - with great family holidays or rental income along the way... There are now more investment opportunities than ever in the Spanish property market as prices slow, developers jack up their incentives and “Must Sell” owners struggle with the mortgage payments after successive Euro interest rate increases. The new lower prices also produce long term ownership benefits, mainly the vastly reduced mortgage payments and resultant lower asking rentals if owners want to further subsidise their costs. 2008 is the already looking like the best year yet after a decade of steeply rising values for hardened investors buying at below market value (BMV) or long term buyers grabbing a bank owned or private “Must Sell” bargain at 25% to 60% less than official valuation. Buying at Below Market Value is an obvious investment strategy, especially in a lower risk established property market such as Spain that still attracts more tourists than all of the so-called emerging markets put together. Year on year increases in arrivals for a decade means more tourists, means more rentals. For an extensive choice of new and off plan property for sale in Spain on the Costa Blanca and Costa Calida, visit the Novocasa website.