Spain Papers Review - Thursday December 4 2008
The latest ETA killing dominates all the papers in Spain this morning.





Spain Business Brief - Thursday December 4 2008
Solbes asks the Spanish banks to be more generous to families and businesses.

Spain Features : Property in Spain

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Distressed Not Depressed
By Mark FR Wilkins from The Rights Group - Oct 9, 2008 - 1:02 PM

Mark Williams of The Rights Group looks at how property buyers can benefit from a property portfolio in the current conditions.

In 2008, the expression “Contagion” – now there’s a new word for it – became the post modern equivalent of the expression “When America sneezes the rest of the World catches a cold.” On this occasion, not so much a cold, flu or pneumonia but something all the more terminal has occurred. And do you know how the miserable bankers – only thinly disguised rhyming slang - have done it ….. with your hard earned dosh.

Stone me that’s depressing!

Whether it’s the British Government using your tax pounds, the Federal Reserve deploying a US citizen’s tax dollars or comparable activity in the Euro zone – you – in the broadest sense - are footing the bill. This is manifest from the losses sustained by your pension fund, your share portfolio or your savings account or the inevitable cutbacks in much needed Hospital and school building programmes. You have already lost or will lose out because money destined for far more laudable goals has to be diverted into the economy to shore up the paper thin remnants of the banking system. What a disgrace!

Frankly, this stinks. Revolutions have been ignited by less but I suspect that we are all being a little to “British” about this fiasco.

I have quoted my pal Russell before. He’s the London based builder who for the last twenty five years has bought and sold apartments and houses in a number of countries. His investment philosophy is very simple…. “Bricks and mortar will never be worth nothing”. The same cannot be demonstrably said for stocks and shares. He refuses to entrust his cash to brokers who have been allowed to flourish in an environment where regulation has palpably failed? As a consequence, he doesn’t have a pension fund he has a Property Portfolio.

Ask anyone who’s had a brush with investment advisor – and there are some diligent and conscientious souls out there providing well researched and honest advice – that placing all your eggs in the same basket is a very risky strategy – especially when there’s a wicker work weevil at large!

The essence of any Property Portfolio is about seeking to blend investments to suit the “risk adversity” of the investor. A combination of good all-round performers having low to no risk with slightly more “interesting” investments that will deliver mid to long term gains when compared with costs of entry. There should be a clear match between pure speculation and sense.

Past performance is not always the best indicator but for the purposes of many property investors it does the trick. The cyclical nature of the many property economies Worldwide has proved “Past Performance” to be one of the best yardsticks around.

But wait a minute, let’s not forget that property within your Portfolio may be “used” or even, God forbid in these times of financial misery, “enjoyed”! Your Property Portfolio may include your principal residence, some home and foreign property - which may be “jet to let” or solely for you own enjoyment – or you may chose to share its use with friends and family. How can you do that with your BP shares?!

Please hold down – and do not release - the delete button in your memory to cancel the notion of getting rich quick or the expectation of a simple property investment that delivers double digit return by the end of next week. Growth will surely happen but it will be slow – no-one has a reliable crystal ball! At this stage, the Mother and Father of Growth, Trust and Confidence, have just exchanged phone numbers after meeting on the train labelled “The Future”!

I firmly believe - as do our property buying clients – that whilst “Location” is a priority a pace behind it stands “the Deal”. For many Spain continues to be the most favoured overseas property of choice for Brits – so the Three “Ls” still rule!

So in whom can you place your Trust? Trust may not have an easy landing in a country where the diet – albeit healthy - is defined by a combination of Olive Oil and Oily Fish.

As a lawyer it’s not often that you can take pride in something that you have written. Call me shallow but the response we have recently received from Real People who have purchased our recently published TRG Handbook “Buying Distressed Property in Andalucía” has been simply staggering. Copies of the Handbook are literally flying off the virtual shelves at www.distressedpropertyhandbook.com and the feedback we have been getting since its launch at the beginning of October has been completely illuminating.

The numbers of copies sold suggests that people – who seem to consist in equal measures of serial investors and lifestyle purchasers - see now as the right time to take a stake in a property economy in Spain that is in the doldrums.

They have told us that they have toyed with the idea of a Spanish purchase for a number of years. They are now relieved that their wait is being rewarded by the availability of property stock that they could only have dreamed of being able to afford two years or so ago. Yes, it’s that dramatic! Prices are down, the locations are great, the quality of finish is good rising great and the Deals that can be achieved are far surpassing buyer’s expectations.


Note : - Please note that the information provided in this article is of a general interest nature and intended as a basic outline only. It is not intended as any substitute for detailed legal or other professional advice specific to the reader’s circumstances. Nothing contained in this article should be seen or taken as the writer or publisher providing legal or financial advice.

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