Best scenario in decades to access Spain’s hidden gems

Spain, alongside other advanced economies in the world, has recently suffered the most adverse economic and financial difficulties in the last 70 years. Even under these circumstances, premium assets have been able to retain their value, while others have suffered a considerable depreciation.

This is true in its own right due to the naturally intrinsic value of the premium assets themselves and the attractiveness of Spain as a modern western country and its unsurpassed quality of life.

Additionally, compared to other European countries, Spain is shielded from the hot money inflows and investment waves (mainly from the Middle East, Russia and China) that have pushed prices up in other European countries (especially in cities like London or Paris) beyond any sustainable economic reason.

One key reason is that the financial and economic stress inflicted has been widespread in the System. As a consequence, some owners of premium assets have decided to make them available for private sale, or would be willing to do so under the right circumstances.
This pressure translates, in some cases, into opportunities to acquire a true hidden gem at exceptionally advantageous conditions. It is precisely in this selective and exclusive niche, out of the reach of most that Rimontgó Invest focuses, thanks to a reputation earned during nearly 60 years.

1. Low Euro exchange rate compared to other major currencies.
2. Economic recovery underway… but not quite yet as close to 2006's speed.
3. Easier access to credit, very low cost of financing and low yield of monetary markets.
4. Low general level of prices (up to 50% less) affecting almost all realms of the economy: manpower, services, companies, cost of living, transportation, etc.
5. Advantage for foreign investors to access (and to finance) premium assets due to lower demand from financially strained local investors still bent on financial deleveraging.
6. The Spanish government's deliberate effort to attract foreign investment including a number of specific incentive measures, amongst which are:

• The SOCIMI whose favorable taxation is the favorite of large foreign investors.
• The Golden Visa program granting resident status is very popular amongst families.
• Collective investors may unite efforts to channel end-user individual investors.

7. Madrid, Barcelona and Valencia have far more attractive premium property than similar European cities. While the main flows of hot money go cities such a London or Paris, renown investors and trendsetters are setting their eyes in Spain (Bill Gates, George Soros, Carlos Slim, Goldman Sachs or Sovereign funds from the Middle East, to name a few).
8. The current availability of secured assets in prime locations at unusually high yields create unique opportunities for investors seeking to leave in three to five years time, when full recovery pushes up property values.