Spanish Property
Investing in International Property
January 2006
Now that Gordon Brown has decided not to allow residential property into SIPPS (Self Invested Personal Pensions) schemes, many investors must be wondering what next?
2005 saw the first reported fall in UK property prices in 10 yeaars, now owners of International property may be wondering if it's their turn.
Throughout 2005 there was a definite sense of 'levelling off' in the International Property market, particularly in Spain where thousands of people who had been buying 'Off-plan' were selling at discounts.
At the beginning of December, Toffsworld was approached by one client who had 7 properties he wanted to 'get rid of'. "It's over" he said, declaring that after 20 years in Spanish property, this was the first year that he couldn't let his property to holidaymakers and now he forecasts that prices will tumble.
The big hope for the International market was that Gordon Brown would allow property to be included in the long awaited SIPPS pensions debacle.
Now that that's not to be, there is little incentive for internatinal investors to hold onto property that is already overvalued in many parts of the world.
But it's certainly not all doom and gloom.
In parts of Spain, there is downward pressure on prices in areas such as Estepona, Duquessa, Almeria and even Benalmadena, because of the huge amount of speculation that has gone on in recent years, however, Marbella, Fuengerola, Torrequebrada, etc are seeing prices holding up and that is largely due to the fact that these are established residential areas.
Apart from the above pockets of trouble, overall property prices across Europe are holding - if falling slightly. That's inevitable as there will be profit takers who want to move their money elsewhere.
And for those with cash, the areas most talked about are Dubai, Cape Verde - in the Atlantic - and farther East in India, Thailand etc.
Eastern Europe may still be a good bet - Romania, Croatia etc - but these areas too have seen such huge rises over the past 2 years it's difficult to see any significant rise in the coming year.
What is good news is that no one that we speak to in property is talking about crashes. All the seasoned professionals just see the slowing down that is occuring now as inevitable.
The only crashes will be in the areas mentioned above and those people who took unecessary risks in the first place - buying rustic land, land without consent, 5 apartments when 1 would do, etc.
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