Did you watch ITV’s program last night about the property crash in Spain? If you missed it, it was a heartbreaking program about people who have purchased their dream home in Spain only for it to turn into a nightmare.

Why has it turned into a nightmare? Because they have been affected by the global economic crisis that has hit Spain quite hard. Unfortunatley there are people who either purchased their property right at the top of the boom and they have now seen it drop in value drastically or they have seen their mortgage repayments increase to such a level that they cannot afford to pay it anymore and consequently risk losing their property.

Of-course in any economic situation there are winners aswell as losers. The program showed a lady who was taking the opportunity to look for her bargain property. There was also an entrepreneurial lady who was making a nice amount of money from auctioning villas and apartments.

The lessons here I think are simple. If you are looking to buy a property, whether it is in Spain or any other country, it is wise to follow a few tips;

1 Do not stretch yourself too far. You have to be able to cover all mortgage repayments. If the house is a holiday home be aware that you will have empty periods when you will have to cover the monthly mortgage aswell as the other costs such as community fees.

2 Do your homework. This is extremely important. Who are the company responsible for building your property? Are they reputable?

3 See the property before putting any money down. Research thoroughly.

4 Walk away from your first viewing and think about it overnight - no matter how much you want it. If you are being told that the property will be snapped up by someone else take it with a pich of salt. If you still feel the same way about the purchase the following morning, and you want to buy it then put things in motion when you have had time to really think about it.

I really believe that the market in Spain will pick up eventually. It will take a while but soon property prices will be back on the increase and people will be kicking themselves for not buying now whist the market is in a low.

If you are interested in knowing what it is like to buy a property in Spain and moving to Spain, my parents purchased their house 8 years ago and you can read their story of moving to Spain here.

There are currently 2 properties for sale on their community and these properties can be viewed on our property for sale page.