The global recession hit the real estate market hard. Many countries have reported double-digit declines in both prices and sales. No nation has suffered quite as mightily as Spain. There are a number of simple explanations for their current predicament. The first and most obvious one is timing. Before the global recession hit, Spain had been the site of one of the greatest real estate booms in modern times. From 1995 to 2007, prices increased by 201 percent. This impressive growth encouraged building projects on a grand scale. Unfortunately, when the recession hit, the bottom fell out of the market and millions of homes were left unsold. At last count, there are over three million homes, apartments, condos and the Golden mile villas that are vacant in Spain. What does this mean for investors? Well, it means that there is money to be made for those that are daring enough to take a risk. And make no mistake about it the Spanish real estate market is still quite risky. Prices have not yet stabilised and there is an enormous inventory of unsold homes. Buyers are particularly keen on homes that need a little work. They might be fixer-uppers or just old homes, but either way they present an incredible investment opportunity. Why, exactly? Well, they are discounted homes in an already heavily discounted market. It is not at all uncommon to find a fixer-upper selling fifty to seventy percent below its market value. With a deal like that, how can you lose? Well, actually, you can lose, but only if you make a rookie mistake. One of the most obvious ones is to sink everything you have into remodelling a room or two. Often, that room is the kitchen or the master bathroom. And while the room may turn out great, it is seldom a prudent investment. Rather, we suggest that you complete a number of small home improvement projects. Paint the walls, refinish the floors, stain the cabinets, replace the window treatments, and paint the exterior. Taken together, everything we just mentioned will only set you back a few thousand pounds. Compare that with the thirty-thousand pounds it costs to remodel the average kitchen and bathroom, and you may see our point.
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