Buying a House? Why Wait?
Oct 30th 2011 | 7:49 am
#31
Not Banned (yet)
Joined: Aug 2008
Posts: 6,404
From: East Sussex
Re: Buying a House? Why Wait?
The official Spanish housing market numbers, understated as they are, have shown a steady decline in value for the past four years. The future predictions from reliable Spanish sources show that a further decline is inevitable for at least the next few years, possibly many years.
To put it bluntly, if you buy a property in Spain now, it will be worth considerably less next year and even less in the years to come.
To put it bluntly, if you buy a property in Spain now, it will be worth considerably less next year and even less in the years to come.
In fact, thinking about it, I don't think I could trust a 6 month prediction from so-called experts.
Oct 30th 2011 | 9:00 am
#32
RETIRED ;-))
Joined: Jul 2003
Posts: 20,156
From: Benalmadena Pueblo,Spain
Re: Buying a House? Why Wait?
(possibly more by living in Spain: less stress and a better diet)
Never quite followed this line of thinking.
Life can be as stressful or not as you care to make it, I can't see living in a big city in Spain being any less stressful than living in any city anywhere in the world. If you moved from the middle of London to say, the Alpujarras, of course it would be less stressful, but ditto moving from London to the country in UK. As for better diet, it's entirely up to the individual what they eat, no matter where they are. Agree the "Mediterranean Diet" is supposedly healthy, but how many Brits adopt the Spanish way of eating, these forums are full of threads of Brits seeking out Brit food. You decide what you will eat, the country you are in doesn't decide it. And Spanish kids are no different to UK kids, they are obese, they are eating more and more junk food. For the reasons you have given, I'd have thought buying a property in Spain would give you plenty enough stress! 
And those that have ended up with dodgy, unsellable properties must be megastressed.
Never quite followed this line of thinking.
Life can be as stressful or not as you care to make it, I can't see living in a big city in Spain being any less stressful than living in any city anywhere in the world. If you moved from the middle of London to say, the Alpujarras, of course it would be less stressful, but ditto moving from London to the country in UK. As for better diet, it's entirely up to the individual what they eat, no matter where they are. Agree the "Mediterranean Diet" is supposedly healthy, but how many Brits adopt the Spanish way of eating, these forums are full of threads of Brits seeking out Brit food. You decide what you will eat, the country you are in doesn't decide it. And Spanish kids are no different to UK kids, they are obese, they are eating more and more junk food. For the reasons you have given, I'd have thought buying a property in Spain would give you plenty enough stress! And those that have ended up with dodgy, unsellable properties must be megastressed.We've been here before with all this unbelievably fresh Spanish produce, the majority is produced under plastic and pumped full of chemicals, and a lot of "Spanish" fruit and veg started it's life elsewhere, it's imported and labelled as Spanish. (I linked to it recently). In the past Spanish fruit and veg has been banned from European supermarkets due to it's high levels of nitrates or whatever. But keep believing, brother, if it makes you feel better, it must be good.
Thanks JLFS! Could you send some of those grapes that have been fermented and bottled, preferably albariño variety, or even a verdejo if you are skint. That would really be appreciated!
As for tomatoes, I´m still eating my own, they don´t get any fresher or better than that!
As for tomatoes, I´m still eating my own, they don´t get any fresher or better than that!
Oct 30th 2011 | 10:12 am
#35
Banned
Joined: Aug 2009
Posts: 5,008
Re: Buying a House? Why Wait?
Even eating, was part of the pitch.
They were promised places with bars, shops, transport and a lot of the more recent buyers were left high and dry, living on a building site and no ameneties, far from a bus route, and supermarkets.
Oct 30th 2011 | 11:46 am
#36
Joined: Jun 2011
Posts: 12,053
From: In the middle of 10million Olive Trees
Re: Buying a House? Why Wait?
Oct 30th 2011 | 11:48 am
#37
Joined: Jun 2011
Posts: 12,053
From: In the middle of 10million Olive Trees
Oct 30th 2011 | 9:10 pm
#38
BE Forum Addict
Joined: Aug 2004
Posts: 1,533
From: Albuñol. Granada
Re: Buying a House? Why Wait?
We bought, would not have rented, back in 2003. bought from elderly Spanish couple who we are still in touch with. no problem with the house etc.
Would seem to be new build where these problems happen, and contrary to Brtish news it happens to the Spanish buying new builds as well.
Would seem to be new build where these problems happen, and contrary to Brtish news it happens to the Spanish buying new builds as well.
Oct 30th 2011 | 9:33 pm
#39
Banned
Joined: Dec 2006
Posts: 8,824
From: Living in a good place
Re: Buying a House? Why Wait?
Yes that's generally true, new builds were the worst. A lot of Spaniards got stung with the AIFOS fiasco. Although I have friends who bought an old finca in coÃn which they can't sell because of illegality problems. They used a Lawyer too.
I read last week there are more illegal houses in Spain than the whole of Europe put together.
I read last week there are more illegal houses in Spain than the whole of Europe put together.
Oct 30th 2011 | 10:11 pm
#40
Forum Regular
Joined: Jan 2011
Posts: 58
From: Fuengirola
Re: Buying a House? Why Wait?
As the thread title says Why wait ?
All I seem to hear is 'Oh dear, prices still dropping don't buy yet' What a half witted attitude. Buy what you want because it's what you want/like and buy the damned thing regardless of the few doom and gloom merchants who frequent this site. Waiting for the ideal time based on rumour and speculation means you will be dead and buried before you own anything.
Yes can be problems with buying in Spain but I have yet to experience them as yet (on my fourth property now) mind you I have a decent spanish lawyer and avoid british ex-pat businessmen like the plague !!!
Andy
All I seem to hear is 'Oh dear, prices still dropping don't buy yet' What a half witted attitude. Buy what you want because it's what you want/like and buy the damned thing regardless of the few doom and gloom merchants who frequent this site. Waiting for the ideal time based on rumour and speculation means you will be dead and buried before you own anything.
Yes can be problems with buying in Spain but I have yet to experience them as yet (on my fourth property now) mind you I have a decent spanish lawyer and avoid british ex-pat businessmen like the plague !!!
Andy
Oct 30th 2011 | 10:54 pm
#41
Joined: Jun 2011
Posts: 12,053
From: In the middle of 10million Olive Trees
Re: Buying a House? Why Wait?
As the thread title says Why wait ?
All I seem to hear is 'Oh dear, prices still dropping don't buy yet' What a half witted attitude. Buy what you want because it's what you want/like and buy the damned thing regardless of the few doom and gloom merchants who frequent this site. Waiting for the ideal time based on rumour and speculation means you will be dead and buried before you own anything.
Yes can be problems with buying in Spain but I have yet to experience them as yet (on my fourth property now) mind you I have a decent spanish lawyer and avoid british ex-pat businessmen like the plague !!!
Andy
All I seem to hear is 'Oh dear, prices still dropping don't buy yet' What a half witted attitude. Buy what you want because it's what you want/like and buy the damned thing regardless of the few doom and gloom merchants who frequent this site. Waiting for the ideal time based on rumour and speculation means you will be dead and buried before you own anything.
Yes can be problems with buying in Spain but I have yet to experience them as yet (on my fourth property now) mind you I have a decent spanish lawyer and avoid british ex-pat businessmen like the plague !!!
Andy
and to some extent I agree with you. My BH has been living in the country for work for 2 years now. We rent because of that as at the moment (but forever fluid) she has 3yrs to retirement and at that time we hope to either have bought or be close to - dependent on where we decide to live.
Our past dealings with Spanish systems and ways have always been accepted and negotiated without problems (except for one senhora in the bank) even if we have had a giggle at buying number plates from the tobacconist. (but we understand why).
nice place and nice people so can't see any reason for not living here, just for us the time isnt quite right to buy.
Oct 30th 2011 | 11:00 pm
#42
Forum Regular
Joined: Jan 2011
Posts: 58
From: Fuengirola
Re: Buying a House? Why Wait?
Been try to curb this habit I have of randomly selecting a quote regardless of relevance. 
Oct 30th 2011 | 11:54 pm
#43
BE Enthusiast
Joined: Feb 2009
Posts: 487
Re: Buying a House? Why Wait?
I look at rental returns to assess "right pricing"
Over the last 7 or 8 years i've rented our 2 bed apartment for about £5,500 a year, plus we get to use it for 2 or 3 months. Expenses are about £1700 a year so i get, pre-tax, £3,800. If I were to buy another property, purely as an investment with no personal use I would want a pre-tax return of at least 5%.
Bottom line? In my village i would want to buy a 2 bed, fully furnished and ready to let apartment for no more than £80,000. I'd definitely buy at £70,000.
My current reckoning is that 2 bedders are advertised at £140K +, but don't sell. I reckon they are "sold" at about £100,000.
Another 20% to 25% decline would seem to make the market "good value" from a commercial perspective.
If you just want to buy to live in it that's another matter.
Over the last 7 or 8 years i've rented our 2 bed apartment for about £5,500 a year, plus we get to use it for 2 or 3 months. Expenses are about £1700 a year so i get, pre-tax, £3,800. If I were to buy another property, purely as an investment with no personal use I would want a pre-tax return of at least 5%.
Bottom line? In my village i would want to buy a 2 bed, fully furnished and ready to let apartment for no more than £80,000. I'd definitely buy at £70,000.
My current reckoning is that 2 bedders are advertised at £140K +, but don't sell. I reckon they are "sold" at about £100,000.
Another 20% to 25% decline would seem to make the market "good value" from a commercial perspective.
If you just want to buy to live in it that's another matter.
Oct 31st 2011 | 12:08 am
#44
Lost in BE Cyberspace
Joined: Apr 2009
Posts: 7,749
Re: Buying a House? Why Wait?
Exactly
Rental returns should be between 4-7% of the house price, depending how brave you are and how much you really want the place
Currently, most rents are around 2-3% of the listed price, so prices have still some way to fall imo
Rental returns should be between 4-7% of the house price, depending how brave you are and how much you really want the place
Currently, most rents are around 2-3% of the listed price, so prices have still some way to fall imo
Oct 31st 2011 | 12:43 am
#45
BE Enthusiast
Joined: Feb 2009
Posts: 487
Re: Buying a House? Why Wait?
7% is gross, before expenses.
Anyway, I reckon another 20% to 25% and we're about there.
I would have to say that there are very few signs of massively distressed sellers, prepared to even drop from the current unachievable prices. This indicates to me that most sellers are selling discretionary second homes and are in no great hurry or need to sell.
Anyway, I reckon another 20% to 25% and we're about there.
I would have to say that there are very few signs of massively distressed sellers, prepared to even drop from the current unachievable prices. This indicates to me that most sellers are selling discretionary second homes and are in no great hurry or need to sell.
