What is the catch?

Posted: Mon Jul 13, 2020 2:08am

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Hi. I am in the States (Atlanta, Georgia) and have a dream of retiring in Spain. I see these wonderful little villas with a pool, three bedrooms, two baths, a garden and a view...and they are under $300,000 USD. I keep hearing that Spain is expensive, but a home in the U.S. near the beach, with a view, a garden and pool would be three or four times that price. What gives? What am I missing about the cost of buying a dream retirement home in Spain? Thank you in advance for your input. (Oh, and I understand about the 10% fee on top.)

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Posted: Mon Jul 13, 2020 5:48am

jimtaylor

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Posted: Mon Jul 13, 2020 5:48am

No catch.

Land in Spain has always been cheap.

Due to a massive crash of the building boom quite a few years ago, property prices plummeted, and it's unlikely they will ever recover to the levels they were at during the boom.

The fact that many building companies went out of business means that the banks are sitting on a lot of properties which are unfinished. In some cases they are completing the build and selling them at low prices. That has the effect of also depressing property prices overall.

The economy is suffering and the unemployment rate is high, made worse by Covid-19, and I wouldn't like to guess which way property prices will go. I certainly wouldn't be optimistic about a short-term recovery.

Posted: Mon Jul 13, 2020 11:09am

Kelvin1960

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Posted: Mon Jul 13, 2020 11:09am

Around 10 years ago, there was beach front estate in Florida for (almost) pocket change. I looked at some in Daytona Beach, and up/down that coast area.

Spain never got that bad, but it hasn't recovered yet.

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Posted: Mon Jul 13, 2020 6:48pm