Is ther a house Crash in Spain?

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Rosie01
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Is ther a house Crash in Spain?

Postby Rosie01 » Thu Jun 21, 2007 8:01 am

In the UK we have seen a documetary re: Trevor McDonald who has said that Spain has been over developed especially where I will be in the Marbella region. Aparently, there are hundreds of 2 bed apartments for sale which are not budging.

Is this correct?

Rosie

katy
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Postby katy » Thu Jun 21, 2007 8:24 am

Yes, it's true. Prices don't seem to have crashed though. Think there will be some bargains around soon.

Rosie01
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House Crash?

Postby Rosie01 » Thu Jun 21, 2007 9:10 am

Interesting.

Did you send me a pm Katy re: Aqua I'm not able to read it guess I'm doing it wrong.

Guess wot it's raining here in Bristol!!!

Ahhh oh well I'm off to teach aqua.

x

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dido72
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Postby dido72 » Thu Jun 21, 2007 12:58 pm

There seems to be a lot of price reductions on estate agents websites, could be just a sales ploy though :roll:

Rosie01
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Postby Rosie01 » Thu Jun 21, 2007 8:30 pm

Maybe, but we here in the UK have been told there maybe a problem?? anyway, I won't be buying for at least 6 months.

x

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Postby Beachcomber » Thu Jun 21, 2007 8:55 pm

The main problem is with developments where people hoping to make a quick buck by purchasing off-plan and selling on their contractual rights prior to completion. These people have caught a severe cold and are stuck with a property they do not want with a mortgage they cannot afford.

It does not help matters that the Spanish economy has been brought to its knees by the current PSOE government, a fact denied by people in the business trying to talk up the property market as evidenced by one particular contributor to the Trevor McDonald programme.

You are probably wise to wait a while but how long you wait depends on what kind of property you are hoping to purchase.

If you want a brand new characterless 'villa' on a huge urbanisation which has been built miles from anywhere you could pick up a bargain but if you are after a resale property in a nice urbanisation close to the beach and amenities or a legal country property you could be in for a long wait.

anyroads
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Postby anyroads » Thu Jun 21, 2007 8:57 pm

Rosie01 said......

"anyway, I won't be buying for at least 6 months"

wait another six months after that, and it will be buy one get one free. Euro interest rates are set to climb.

anyroads.

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MrsP
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Postby MrsP » Thu Jun 21, 2007 9:28 pm

Rubbish. The houses inland are still selling, no reductions there.
The coastal stuff, there are too many the same so prices will be more competative. I wouldn't wait, they won't drop just stay the same or even increase.
Chris

katy
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Postby katy » Thu Jun 21, 2007 9:32 pm

So it may be there are better bargains on the coast...is that what you are saying?

Rosie01
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Property Crash?

Postby Rosie01 » Thu Jun 21, 2007 10:08 pm

PSOE government what does this mean?

Inland property is much cheaper I do know this. However, if I buy in Marbella will I be able to re -sale on at a higher price- I do hope so for my kids sake. x

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Postby spanish hopes » Thu Jun 21, 2007 10:13 pm

if I buy in Marbella will I be able to re -sale on at a higher price
If you are looking long term rosie this is probably true. If however your plans are iffy and you think you will be able to sell quickly should things not work out then you may be disappointed.
Be careful but good luck.

Beachcomber
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Postby Beachcomber » Thu Jun 21, 2007 10:55 pm

PSOE Government - The bunch of socialist despots who gained control of the country by default in 2004 when the Spanish electorate lost its nerve after the Madrid bombings a few days prior to the general election.

spanish hopes
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Postby spanish hopes » Thu Jun 21, 2007 10:57 pm

I take it you are not impressed Beachcomber. :lol: :lol: :lol: :lol:

katy
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Postby katy » Fri Jun 22, 2007 4:43 pm

May have spoken too soon...seen in today's Sur. an ad from BBV bank selling off properties, mainly locales but a few apartments, one in Benahavis.

citymike
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Postby citymike » Sat Jun 30, 2007 10:56 am

MrsP wrote:Rubbish. The houses inland are still selling, no reductions there.
The coastal stuff, there are too many the same so prices will be more competative. I wouldn't wait, they won't drop just stay the same or even increase.
Well thank God for that.

Do you know how banks operate these days? It's very interesting. In the old days banks used to have money which they would lend to people keeping a certain percentage (30%?) in reserve. These days it's different.

These days a bank sells the debt on its books to hedge funds and pension funds who receive the interest repaid minus a small commission every month. That releases more money to the banks which they can lend again. They sell these loans in what are known as Collaterised Debt Obligations (CDOs) and recently there has been a bit of a kerfuffle when someone who holds one of these CDOs tried to sell and discovered that the market doesn't value them quite so highly as the holder thought.

Do you know what this means? Any bank trying to sell a new CDO might find that there is not a market for it. I'm sure you know what this means, it means that the banks have a lot less money to lend which is known as a credit crunch. That doesn't just affect the property market, it also affects business investment, people lose their jobs. People without jobs are forced to sell assets and if a sufficient number try to sell at the same time then prices will fall.

There is a simple antidote to this malaise. Put your fingers in you ears and sing "La la la la la, I'm not listening" and the problem will go away.

Rubbish indeed

anyroads
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Postby anyroads » Sat Jun 30, 2007 11:37 am

rubbish indeed ?

Spot on citymike.

Even the top rated CDOs would only command 75% if sold on the open market. Never mind some of the rubbish tied up in property.

Interest rates are set to rise, possibly 2/3 times over the next year. Prices inland may well hold their own, but as for the elsewhere, I would be a bit nervous buying on the coast right now.

anyroads

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Postby casablanca » Sat Jun 30, 2007 1:24 pm

I am one of the potential buyers, who will downsize their property in the UK and aim to spend more time in Spain when I can. However, in the current and foreseeable market, I now see renting as a more attractive option.

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Postby swerve » Sat Jun 30, 2007 6:51 pm

If your not selling then you don't have to worry to much just hold on till the market recovers :lol:
It always seems imposible until its done. Nelson Mandela


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