How to find a property bargain in spain

Following the eurozone debt crisis, Spain's property market has taken something of a battering. This means there are plenty of opportunities to pick up a real estate bargain - if you know where to look and what you should be looking for in a house or flat.

Below are some pointers to help you on your way if you think you'd like to invest in property in Spain.

Why do you want a property in Spain?

Before you begin your search, you should know why you're buying a house in Spain. Is it so you can move over there or are you intending to generate an income from it by using it as a holiday let? This will obviously have a big impact on what you're looking for and which destinations you're focusing on.

If it's a holiday home you're thinking of, you need to choose somewhere that's easily accessible from elsewhere in Europe, that has good facilities for holidaymakers and that's still popular with travellers.

Consider location

One of the problems many foreign homeowners in Spain have at present is that they've bought in developments that are no longer popular with buyers. In some cases, there are large housing estates that resemble ghost towns, so it's imperative that you do a lot of research before deciding to go for a property.

The best way to approach looking for real estate in the current climate is to focus on destinations that are perennially popular - particularly if you're going down the holiday let route. The Spanish islands (like Mallorca, Ibiza and Tenerife) are all good options where property prices have held up better than in other parts of Spain.

Alternatively, you can look at up-and-coming locations. Murcia is one such example that has received interest recently due to the construction of a Paramount theme park that is expected to attract thousands of tourists when it is completed in 2015.

Never buy a property abroad - in Spain or anywhere else - without going to see it first. You need to make sure it is exactly as described by the estate agent and that there are no surprises (like a building site next door) that are going to make it undesirable.

Know the local market

Once you've decided where you want to concentrate your search, you need to do more research to find out what properties on the market are selling for and get an accurate valuation of any real estate asset you're thinking of buying. Go to more than one agent to check what you're being told is correct.

Remember that a property bargain may not necessarily be cheap; it could just be a good deal for the area you're in. So, don't be drawn in by a low price tag on a property in an undesirable place - consider spending more to get more and ultimately have a more attractive investment.

Use exchange rates to your advantage

Once you've settled on a property to purchase in Spain, you can improve the deal further by searching for the best exchange rate when you transfer your funds from your UK account to the seller in Spain.

The best way to do this is to use a specialist foreign exchange provider, who can check money markets to find the best rate for you when you need to make the transfer. Often with real estate transactions, you will have some notice of when the transfer needs to occur, which gives you time to look for a favourable exchange rate and lock in a good deal by using a product like a forward contract.