Buying a house in the Financial crisis. Smart or Stupid??

Currently we are in one of the biggest financial crisis ever. Spain is doing even worse then most EU- members. Is it wise to buy a house now?

First of all we can tell you it is not easy to get a mortgage in this time. Specially spanish banks are very difficult. Most banks will say no on forehand. One of the most flexibel banks is IBER CAJA. They still give 80% of taxation value.

But even when the bank gives you the loan, what will happen with the real estate market? does it go up again soon or will it go down further?

Spain and the Costa del Sol are two different topics. The two housing markets do funcion in different curves. Expectation is that Spain as a whole will suffer long time and so housing prizes will go down further the next few years. On the Costa del Sol is more or less the same expectation, but with one difference. Northern europeans do influence the property market big time. So an economic recovery in the north of Europe, will have a positive effect on the Costa del Sol and Torremolinos. Is the economy in northern Europe not recovering on the short term, The south of Spain could be worse then the rest of the country.

Buy now or later?
There are still lots of houses way too expensive, but if you take your time and have a good look around in southern Torremolinos.there are lots interesting offers on the market. We would say yes you can buy something, but be careful!!! If it is a real estate investment for a long time. Good! If your short time future is less secure. DON´t. Wait a few more years to buy your house in Torremolinos, because it is almost sure, that prices won´t go up big time.

More economic information about Spain and information about real estate development have a look on Wikipedia. Good article!!