I see your point (slightly),but everything is at the mercy of market fluctuations.Currency,shares,even gold and diamonds.I would predict that property will fair better than cash in the next ten years.If the euro manages to stay together it will be financed by inflation,if the peseta makes a comeback I hate to think what the currency markets will do to it! Don't forget modern economics is built on opinion

Again, in a way I agree. Although I dont think the answer is property

Remember that there is also opportunity cost. If all your cash is in property then you cannot buy or invest in anything else. And you may have to work to pay off the loans and servicing costs

Thats why I have cash at the minute, looking for opportunities as the market drops. You'd have to have a lot of savings to get a good return off a 3% savings rate! But then again, I know people who struggle to get a 3% return off the rental of their property, especially in Spain

It's time to de-leverage! In fact it was time to de-leverage 4 or 5 years ago

I bet you believe in fairies as well.

Yes nothing is guarenteed

But its just a likely that they would introduce new or higher property taxes e.g. 3% of the property value each year, like in some US states

The 10% sales tax in Spain is enough to put me off, that's straight off your profit margin

As previously mentioned before you talked yourself into a hole, under present circumstances your cash is probably better stashed away safely under your own control than in the bank, where all bets and guarantees could well be off, if things continue on what seems an inevitable journey towards financial meltdown.

I wouldn't bet on that.
House prices have been falling slowly for a few years now. The government have put every prop under the market that they can in order to prevent the bubble bursting but I believe they are now facing the reality of the situation: house prices are just too far out of synch with wages.
My personal opinion is that they will still do whatever it takes to prevent a crash (too many VI's), but they will allow a slow deflation of prices over the next few years, coupled with above target inflation.
Even the banks can see the inevitable fall in prices: why else would they be insisting on 25% deposits and regularly under valuing property when mortgage applications are presented - they are hedging their bets and looking to protect their investment if they have to reposess.

And even if you find a property that manages to hold its value over the next ten years, the maintenance costs alone could easily be a thousand a year.

Of course, there are always those very desirable areas where house prices seem to always rise, but I for one would not want to buy property as an investment vehicle. A place to live, possibly, but investment, not a chance.

Am I the only one on here that purchased a bit of land with a house to live in and not as an investment, remember you can't take your cash with you when you depart this world, buy yourself a nice house and don't worry about your money keep enough for that rainy day and enjoy the rest your life as I do.

I suppose it will always depend on the term of your investment.I was looking at the model of someone in their mid twenties making an investment for their retirement.I think most would agree private pensions and shares are shot,currency and commodity trading are fraught with problems.Cash with todays low interest rates and the promise of continued inflationary government policies isn't a good alternative.So taking everything into consideration I'd still go bricks and mortar.If there was a definitive answer we'd all be richer and so just like a day at the track it'll always be a gamble,with some luckier than others.

Are you crazy?

I dont know anyone in their mid 20s who would do this, neither should they

i did not struggle to find a safe haven,i bought one ounce krugerrands 8 years ago,GUESS what, my gold has tripled in value,
prices in the piigs have still to drop a lot yet,i'll stick with gold its been good for 5000 years.