Cheap deals on property in Greece & Spain attracting new buyers

As property prices continue to
fall in Greece and Spain, speculative buyers are continuing to show interest in
the market.  While homes may be
cheap, it’s worth bearing in mind that there may still be risks associated with
buying low cost Spanish or Greek property.  That’s the view of 24/7
Wall Street, as we see here.

Take a medium to long term view when buying property in Spain or Greece

International Living recently reported that ‘high quality Greek
real estate is coming onto the market for a fraction of its previous value’ and
predicts that ‘price will continue to fall’.

Property expert Ronan McMahon
added that ‘Greece faces a crisis today and its real estate is about to get
dirt cheap. Prices will continue to fall as sellers become more desperate.’

And, there is a similar situation
playing out in Spain.  Property
expert Mark Stucklin said: “There’s no denying that there’s a savage adjustment
going on here [in Spain].”

The problems in the country stem
from overbuilding and inflated housing prices during the property boom.  “Prices in most of Spain are down 75
percent from the peak in 2007, and new construction is down 95 percent. That’s
a collapse of the house-building industry by anyone’s standards,” he said.

But, while property in the two
countries is cheap, investors should consider that prices may continue to fall
or be depressed for several more years. 
24/7 Wall Street notes that
‘people who do buy homes in these two nations take a very long set of risks’.

A difficulty in selling a home
purchased now in either Greece or Spain could persist for years. Nick Marr from
overseas property experts Homes Go Fast, said: “It is certainly true that there
are some property bargains to be had in Greece and Spain.

“However, buyers looking to make
a quick profit may be disappointed. 
Prices may have farther to fall in both countries and it may be some
years before demand for homes and prices recover.  It is therefore important to take a medium to long term view
when buying property in either Greece or Spain.”