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To buy or NOT to buy??

To buy or NOT to buy??

Old Jan 6th 2015, 2:15 am
  #91  
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Default Re: To buy or NOT to buy??

Originally Posted by Pablo the sailor
You would choose Spain OVER London as property investment over next 5 or 10 years? You sound like just the guy I need, I have 2 mainland Spain properties on the market, please look in the Classified section & get back to me!
Why don't you post again in 10 years time and let us know how you've gotten on?

In Spain, I wouldnt buy in some ex-pat enclave. There is always demand in the major cities. At the right price of course
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Old Jan 6th 2015, 2:28 am
  #92  
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Default Re: To buy or NOT to buy??

Originally Posted by cricketman
With due respect, you are again talking about the past. Of course your property in London has given you a great return in the past 30 years. The value of it has risen by an almost unimaginable rate

But that is no guide to future performance, at all

It is a bit like telling me what the lottery results were for last week. That's no help at all. I need to know the results for next week!
It's like going to any football stadium. If a team is successful, you might see prices increase, but if it gets too expensive you'll have an empty stadium.
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Old Jan 6th 2015, 2:38 am
  #93  
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Default Re: To buy or NOT to buy??

Me too. I have a property for sale too had it for sale for years. Keep dropping the price but no go. Perhaps if I keep it for 10 years I may make a profit but not much of one. But I dont expect to sell it for a profit I just want to sell it so that I can buy another one a bit larger!
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Old Jan 7th 2015, 7:02 am
  #94  
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Default Re: To buy or NOT to buy??

I'm interested.

If you had to choose now, for an investment, what return on your money do you think the best vehicle for that investment would give you? And is Spanish property the best vehicle given the many options available?

Originally Posted by cricketman
I wish you luck, but I have to say that with property investment, always beware of so-called "experts". They usually have an alterior motive

If I had to choose now, for an investment, then yes I would choice Spain over London. Spanish property prices are closer to the long term average in terms of salary ratios
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Old Jan 7th 2015, 7:17 am
  #95  
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Default Re: To buy or NOT to buy??

Originally Posted by Horlics
I'm interested.

If you had to choose now, for an investment, what return on your money do you think the best vehicle for that investment would give you? And is Spanish property the best vehicle given the many options available?
Are you looking for Capital growth, Yield, or both?

I have a friend who just bought in Marbella at 150,000 Euros and has rented it out on a long let at 700 euros monthly qhich by my poor maths I make just under 5% return, he does of course have different costs that come with owning that property although he tells me those are tax deductable! He hopes to make on capital growth over 7 or 8 years and says he is happy with the current yield!
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Old Jan 7th 2015, 7:38 am
  #96  
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Default Re: To buy or NOT to buy??

I'm not looking for anything.

I was exploring what CM thinks he is going to get out of going into Spanish property. He's suggesting that it will better London property returns but I would be interested to see what returns he would estimate.

As for your friend, if he is happy with his yield then that's all that matters. I think it's possible to make a higher return but it probably involves more effort than your friend is putting in, and how much "work" one wants to do on such investments is a big factor in what is right for a particular person.

My own view on yield and capital growth is that the first can be pretty much guaranteed whereas the second is far less certain. I therefore go for yield every time.


Originally Posted by Pablo the sailor
Are you looking for Capital growth, Yield, or both?

I have a friend who just bought in Marbella at 150,000 Euros and has rented it out on a long let at 700 euros monthly qhich by my poor maths I make just under 5% return, he does of course have different costs that come with owning that property although he tells me those are tax deductable! He hopes to make on capital growth over 7 or 8 years and says he is happy with the current yield!
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Old Jan 7th 2015, 6:31 pm
  #97  
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Default Re: To buy or NOT to buy??

I have just purchased an apartment in Spain, with sales tax (10%) and other fees (3%) I see little opportunity for capital growth in the short term.
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Old Jan 7th 2015, 6:37 pm
  #98  
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Default Re: To buy or NOT to buy??

Originally Posted by johnnyone
I have just purchased an apartment in Spain, with sales tax (10%) and other fees (3%) I see little opportunity for capital growth in the short term.
So you have bought for the "lifestyle" then?
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Old Jan 7th 2015, 6:57 pm
  #99  
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Default Re: To buy or NOT to buy??

Originally Posted by johnnyone
I have just purchased an apartment in Spain, with sales tax (10%) and other fees (3%) I see little opportunity for capital growth in the short term.
I think that is one of the things that stops a more healthier property market is the massive amount that it is necessary to pay when making a purchase. The Spanish do not move the one the buy first is the one they keep. My neighbours have all lived in the flats since they were married and have had a their children there and they have had to fill in terraces etc to make extra room. God 5 adults in a two bed flat - the children have grown up - but they do not seem to be in a hurry to move out!
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Old Jan 7th 2015, 7:07 pm
  #100  
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Default Re: To buy or NOT to buy??

Originally Posted by johnnyone
I have just purchased an apartment in Spain, with sales tax (10%) and other fees (3%) I see little opportunity for capital growth in the short term.
At the end of the day it's pointless. I'll let people believe that London is the only right investment, but even in London every area is different.
London house prices fall by more than £30,000 in a month | Money | The Guardian
House prices: Has luxury London bubble finally burst? - Telegraph

Spain also has different areas, so you can't compare Benidorm to a desirable location in Barcelona. Our Costa Brava home was already worth more a day after we bought it. A year later, I could sell at a price 70% higher than what I paid for it, (I don't want to).
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Old Jan 7th 2015, 7:11 pm
  #101  
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Default Re: To buy or NOT to buy??

This is interesting
Why that cut-price Spanish villa has a nasty tax surprise | This is Money
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Old Jan 7th 2015, 7:12 pm
  #102  
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Default Re: To buy or NOT to buy??

Originally Posted by Moses2013
At the end of the day it's pointless. I'll let people believe that London is the only right investment, but even in London every area is different.
London house prices fall by more than £30,000 in a month | Money | The Guardian
House prices: Has luxury London bubble finally burst? - Telegraph

Spain also has different areas, so you can't compare Benidorm to a desirable location in Barcelona. Our Costa Brava home was already worth more a day after we bought it. A year later, I could sell at a price 70% higher than what I paid for it, (I don't want to).
Well that is the place to buy for future investiments surely!!
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Old Jan 7th 2015, 7:27 pm
  #103  
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Default Re: To buy or NOT to buy??

Originally Posted by Pablo the sailor
So you have bought for the "lifestyle" then?
Obviously.
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Old Jan 7th 2015, 7:40 pm
  #104  
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Default Re: To buy or NOT to buy??

Originally Posted by Horlics

I was exploring what CM thinks he is going to get out of going into Spanish property. He's suggesting that it will better London property returns but I would be interested to see what returns he would estimate.
I said that Spanish property would probably be a better investment than London property if you were buying at the moment

However, I would not advise investing in property anywhere at the moment, unless it is to live in, or unless you have loads of cash and this is just part of an investment portfolio

As for returns, depends on whether it is yield or capital return and depends on area and type of property. For capital returns, you can't predict the future and anyone who says they can are lying. For yield, anywhere between 0-8% depending on circumstances
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Old Jan 7th 2015, 9:16 pm
  #105  
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Default Re: To buy or NOT to buy??

It must differ by area then, as the Spanish I know all have at least 2 apartments, one they live in, the other they rent out.

Originally Posted by surreygirl
I think that is one of the things that stops a more healthier property market is the massive amount that it is necessary to pay when making a purchase. The Spanish do not move the one the buy first is the one they keep. My neighbours have all lived in the flats since they were married and have had a their children there and they have had to fill in terraces etc to make extra room. God 5 adults in a two bed flat - the children have grown up - but they do not seem to be in a hurry to move out!
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