Buying In Spain In 2008 Could Be A Great Investment Opportunity

According to information released by Hometrack, the UK organization that provides information solutions to the UK housing and mortgage industries, due to the slowing down in house price increases in the UK, investing in property in the UK market right now is not a good option. The company has predicted that UK house prices will rise by only 1% in 2008 and only 2% in 2009.

Taking into account the rate of inflation, this in effect means that house prices in the UK will fall in real terms over the next 2 years. “In the short-term the risks are on the downside driven by declining house price expectations, higher mortgage rates and reduced mortgage supply” states Hometrack.

Having said that, Hometrack’s prediction for the medium term outlook of the housing market is more favourable. They say that “”The risks around the medium term outlook are far more evenly balanced with lower interest rates, intense competition in the prime market and a structural shortage of housing supply, all positive drivers for the market.” So the news is not all bad, for if you’re a UK resident (or live in Ireland too, which is experiencing a similar situation) and already own a property but are looking for further investment opportunities, this medium term prediction can offer a promising situation for you – for whilst investing in property at home isn’t likely to bring you any rewards right now, borrowing money against your home to free up collateral to invest in property abroad (that is a potentially more lucrative market) should still to be great investment opportunity.

And if you’re looking for a great place to invest overseas, then why not consider Murcia in Spain? Spain has been the number one favorite destination for Europeans looking to buy a permanent or second home abroad for many years, especially for the British and Irish population – and it still continues to be so. The reasons so many of us look to Spain to buy a property are many- the beautiful climate, healthy diet, great outdoor life, lower cost of living, easy to get to etc etc. Just recently, many investors are turning their attention to the inland region of Murcia, Spain, up until recently a pretty much undiscovered area. The area is regarded as an up and coming destination – a “property hotspot” according to property experts.

A small number of developers have been granted permission to construct a number of luxury resorts in the region that we have only previously seen in the coastal areas.These resorts will boast professionaly designed golf courses, riding schools, badminton, basketball, tennis courts, heated indoor pools, outdoor pools, gymnasiums, prestigious club houses and 5 star spa hotels. In the coming years, when the resorts are completed, this inland region of Murcia will be a very different place – a “leisure paradise” and it will be those early investors who purchase off -plan properties on the early phases of these developments (buying properties that are not yet ready) that will reap the big rewards.