mitzipurr

Have come across this


http://www.costablanca-buyers-agent....ge/1556159.htm



Comments please

GCM

I just looked up the article in question. It is a very interesting look at whether house prices are set for a crash or not (in Spain). Since the article was dated December 2004 it would be great to hear real stories from people who can shed some light on the subject i.e. what has happened since and what might be going to happen.

Surely many people on this forum are looking to buy in Spain and therefore they must be very interested in this topic.

Like the person who wrote the article, I also run a website on the Costa Blanca and I was up until 1am today writing my own thoughts on the current market - if you want to read it look at

http://www.costablancauncovered.com/...ty-prices.html

Mark

Wigan Lad

Hi Mark

Congratulations on a well written and to the point article. I have to say I agree with virtually everything you say. I have been considering a purchase in Spain for the last 6 months now and over that period, resale prices just seem to keep on dropping. There is a breed of purchaser who bought off plan and intended to sell off plan at a tidy profit. Unfortunately, there are more off plan investors than buyers, so as the property comes close to completion, they become desperate to sell. Many are just trying to get there money back, some even prepared to sell at a loss as they can't afford to complete. Just check out some of the web sites advertising resales on Polaris World which actually include such words as "just want to get my money back" in blurb for the property.

In my opinion, this is only going to get worse (or better if you are looking to buy) as more and more properties are sold off plan and more and more gullible investors believe the agents hype about making money by selling before completion.

The problem is that this off plan investing is distorting the whole market. This is the classic self inflating bubble which will have to burst, the elasticity is not infinite.

When I post such opinions on other forums (e.g. PW forums) I get shouted down by ostriches with their heads buried in the sand who acuse me of spreading doom and gloom (the ones who do take their head out of the sand seem to be wearing rose coloured specs)

Just my 2 euros worth

Regards

Kevin

big wheels

My thoughts exactly.
A house should be bought as a home, and not as an investment.
I fear that a lot of folks are going to get their fingers burnt buying property off plan and hoping to return a profit.
Any sensible person looking at the amount of building still going on around the costa del sol / costa del luz areas can't fail to see that the "bubble" is about to burst.

GCM

I'm sure you are both right which is why I'm slowly looking around while my wife tries to make me go faster than my snail's pace - she just wants a nice home which is fair enough - me I have to think I'm getting a great deal and that prices will not drop just as I buy.

Was talking to someone yesterday who told me his neighbour had finally sold his apartment after a year - with steady price drops - and we looked out the window to Javea's Port area and all the wasteground was being built with apartments - the amount is staggering - now there has to be too much supply there surely, especially if you are looking to buy and rent to cover the mortgage.

Buy as a home and for lifestyle - NOT an investment.

Mark