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To buy or NOT to buy??

To buy or NOT to buy??

Old Dec 29th 2014, 12:22 am
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Default Re: To buy or NOT to buy??

Originally Posted by Pablo the sailor
No fall for me, 10 years of growth, quite happy to sit on the yield for the next 15 years....But mark my words, Crossraill will change London forever!

Spain, .........IS a lifestyle investment into your quality of life!
You obviously want to advertise your property as a seller and that's fine. Eventually nobody will be able to afford these properties in London and that's fact. The same has happened all over the world and Crossrail won't change a thing. I've seen people in Ireland (Dublin) who believed exactly the same, but look where they are now. Prices are increasing again, but will never reach the peak prices from back then.
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Old Dec 29th 2014, 12:29 am
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Default Re: To buy or NOT to buy??

Originally Posted by Pablo the sailor
I am NOT selling the London property
Did you sell the bar?

How is the sailing going?

Pub in Spain
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Old Dec 29th 2014, 2:32 am
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Default Re: To buy or NOT to buy??

Originally Posted by cricketman
The days of capital growth in property and decent rental yields are long gone
You really do not understand the law of supply and demand.

There may well be a correction at some time (not a collapse) of property prices in London, however the market will recover as the return on rental prices will push property prices back up simply because of a lack of supply.

If you then look at an out of town urb. in Spain, there is little demand compared with the supply available so it becomes a buyers market. You only need to look at the fire sales of property on the various Spanish websites where prices are up to 2/3rds less than some buyers originally paid.
That is not going to change for a number of years if at all as some developments will simply be left to decay.

If I were a financial investor in property, which I am not, I would not have bought two homes in Spain but one in London where the capital gain will be much greater.
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Old Dec 29th 2014, 3:32 am
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Default Re: To buy or NOT to buy??

Originally Posted by johnnyone
You really do not understand the law of supply and demand.

There may well be a correction at some time (not a collapse) of property prices in London, however the market will recover as the return on rental prices will push property prices back up simply because of a lack of supply.

If you then look at an out of town urb. in Spain, there is little demand compared with the supply available so it becomes a buyers market. You only need to look at the fire sales of property on the various Spanish websites where prices are up to 2/3rds less than some buyers originally paid.
That is not going to change for a number of years if at all as some developments will simply be left to decay.

If I were a financial investor in property, which I am not, I would not have bought two homes in Spain but one in London where the capital gain will be much greater.
It isnt so simple

I used to live in London a few years ago. Take a walk down the South Bank of the Thames. Most of those shiny new buildings are empty. Most of the owners are foreigners who do not reside in them, they are left empty all year round

A lot of the increase in London house prices is because the UK do not ask any questions when you buy a property. It is money being laundered out or Russia and China (mainly) but also other countries. A similar thing happened in Spain 10 years ago with a lot of money being laundered into the South of the country

OK you could argue that the demand for money laundering is high so that pushes prices up. Yes true, but if somebody catches on to this and makes it a political issue then maybe the government will have to stop allowing this to happen, and prices with crash. And even if they dont do this, a change in poiltical circumstances in China or Russia or another global crash would do this anyway

Whatever the situation, if you own property in London then whether prices go up or down has very little to do with you and cannot be predicted.

Btw I sold my 1 bed flat for £320k a few years ago because I couldnt imagine it reaching £500k. I was wrong because it is probably worth £420k now to somebody, but now how much further? £1 million within a few years? When two young 20 somethings in very good jobs struggle to make £100k between them? At some point the cards will come tumbling down.

Last edited by cricketman; Dec 29th 2014 at 3:36 am.
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Old Dec 29th 2014, 3:34 am
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Default Re: To buy or NOT to buy??

Originally Posted by johnnyone
You really do not understand the law of supply and demand.

If I were a financial investor in property, which I am not, I would not have bought two homes in Spain but one in London where the capital gain will be much greater.
Supply and demand is one thing, but when property becomes so expensive that people can't afford to buy, your investment might turn sour. If you want a good investment, you set the trend. As soon as you follow the trend it's already too late, but so many people don't realise that. If people buy at peak prices and see it as a home that's fine, but the times of climbing the property ladder are over. Certain areas in London will remain expensive, but please be realistic. If I had a bit of spare cash, I'd buy some agricultural land outside of London. If London keeps growing and property prices are always increasing as you predict, I'm sure I can sell the land to the government, so they can make it urban land and create more social housing.
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Old Dec 29th 2014, 4:00 am
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Default Re: To buy or NOT to buy??

Originally Posted by Moses2013
The mirror article is totally misleading and tell me where it's documented that prices will increase by 40% in the next 5 years Just because one area has seen an increase, doesn't mean that it counts for all types of properties available in that area and will continue that way. From boom to bust and it's always been that way. The property you have in Spain might not be a good investment, because it's in the wrong location, it's an apartment block and you bought at the wrong time. If you bought the right property in Spain today in the right location, it might be a better investment.

The 40% property increase over the 5 year period of crossrail completion has been heavily documented by most leading experts, here is just one of MANY examples you can find on google Crossrail to boost house prices by up to 40% over five years Planet Property
Its not JUST Greenwich, its all areas within a Crossrail station!
Regarding Spain property? I have owned 8 different properties here over a 25 year period always in premium locations, my first property purchase was in 1990 and my last one was in 2001, I still own 3 of the 8 properties today! Have the Spain properties EVER performed like UK property, nope, NEVER!

Do I regret buying in Spain, not one bit, we have had an absolute ball both in business and in our homes here, its been a wonderful "lifestyle" which brings us back full circle again!

Unless you are experienced on buying properties in places like "Calle Larios" in Malaga, or premium sites in Madrid or Barcelona, Spain will not bring the sort of returns in both Capital growth and Yield return as places like UK, however, it is fair to say that most ex pats are buying to be able to enjoy the "lifestyle" which is why its a great time with market values where they are today to come and enjoy owning a home in Spain, you only live once and life is not perhaps quite as long as some of us would like it to be........
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Old Dec 29th 2014, 4:13 am
  #22  
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Default Re: To buy or NOT to buy??

Originally Posted by Fredbargate
Did you sell the bar?

How is the sailing going?

Pub in Spain
Sailing? Fine, im just back from a rather enjoyable 2 week trip?

Not sure what any property I have on the market in Spain has to do with this current topic? Is it a sin to eventually sell because you have other plans or after 20 years of ownership are you "banned" from selling?? I dont understand your point???
My 2 properties that I have on the market in Spain are correctly placed in the "Classifieds" section of this excellent forum, why on earth would you want to post web page property for sale links (now out of date info) "outside" the classified section is beyond me??

I hope the moderators have taken note?

Thank you.
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Old Dec 29th 2014, 7:16 am
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Default Re: To buy or NOT to buy??

Originally Posted by Pablo the sailor
Sailing? Fine, im just back from a rather enjoyable 2 week trip?
Thank you.
Excellent I hope you keep on enjoying

Originally Posted by Pablo the sailor
Not sure what any property I have on the market in Spain has to do with this current topic? Is it a sin to eventually sell because you have other plans or after 20 years of ownership are you "banned" from selling?? I dont understand your point???
My 2 properties that I have on the market in Spain are correctly placed in the "Classifieds" section of this excellent forum, why on earth would you want to post web page property for sale links (now out of date info) "outside" the classified section is beyond me??

I hope the moderators have taken note?

Thank you.
What a strange response

This thread is about buying property in Spain

Your web page Pub in Spain is still listed under your profile.
It also possibly shows the fickleness of property markets
Listed at the incredible asking price of just £125,000 on the web page but its a steal at 85,000 Euros for the FREEHOLD! in the classified add that was posted Fri December 26, 2014
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Old Dec 29th 2014, 7:34 am
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Default Re: To buy or NOT to buy??

Originally Posted by Fredbargate
Excellent I hope you keep on enjoying



What a strange response

This thread is about buying property in Spain

Your web page Pub in Spain is still listed under your profile.
It also possibly shows the fickleness of property markets
Listed at the incredible asking price of just £125,000 on the web page but its a steal at 85,000 Euros for the FREEHOLD! in the classified add that was posted Fri December 26, 2014
I think you will find the rules of this forum state clearly you are not allowed to promote property sales here.......the classified section is made for that! Yes, the advert I posted on Dec 26th is the correct and lattest offer on that particular property!
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Old Dec 31st 2014, 4:04 am
  #25  
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Default Re: To buy or NOT to buy??

Originally Posted by cricketman
London property prices are at the peak of a bubble, just like what was seen in Spain 2005-2007

Spanish property prices have been correcting to the long term average. They have not bottomed out, they are just correcting the unsustainable growth that they showed previously

There is one thing that puts me off buying property in Spain. The 7-10% purchase tax.

I agree that....London is a bubble. I also think renting in Spain with the proceeds of the London bubble before it bursts.
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Old Dec 31st 2014, 4:55 am
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Default Re: To buy or NOT to buy??

Originally Posted by casa del sol
I agree that....London is a bubble. I also think renting in Spain with the proceeds of the London bubble before it bursts.
If the bubble bursts at what level do you believe prices will fall too?
For the bubble to burst rather than a correction occurring prices would have to fall by a significant amount, (40_50%?) and I just cannot see that happening.
I can see prices falling back but even a 25% fall only puts prices back to where they were a year or so ago, so hardly a bubble bursting.
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Old Jan 1st 2015, 12:07 am
  #27  
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Default Re: To buy or NOT to buy??

Originally Posted by johnnyone
If the bubble bursts at what level do you believe prices will fall too?
For the bubble to burst rather than a correction occurring prices would have to fall by a significant amount, (40_50%?) and I just cannot see that happening.
I can see prices falling back but even a 25% fall only puts prices back to where they were a year or so ago, so hardly a bubble bursting.

That would depend on the banks and the amount of credit and ease of obtaining the credit or debt they would be willing to push out into the economy, interest rates the cost of credit would also have an impact amongst other things.....can't pay won't pay.
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Old Jan 1st 2015, 1:23 am
  #28  
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Default Re: To buy or NOT to buy??

Well I own in London and there is not comparison to buying and investing in Spanish property. I doubt if I would even get what I paid for it and renting it out a complete no no. There is no comparison to buying London and Spain.
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Old Jan 1st 2015, 1:24 am
  #29  
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Default Re: To buy or NOT to buy??

Originally Posted by casa del sol
That would depend on the banks and the amount of credit and ease of obtaining the credit or debt they would be willing to push out into the economy, interest rates the cost of credit would also have an impact amongst other things.....can't pay won't pay.
Well, sounds like all us London property owners are doomed!
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Old Jan 1st 2015, 1:25 am
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Default Re: To buy or NOT to buy??

Originally Posted by Pablo the sailor
Well, sounds like all us London property owners are doomed!
I dont think so somehow. I am so glad I kept my property in the UK
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