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-   -   Buying a House? Why Wait? (https://britishexpats.com/forum/spain-75/buying-house-why-wait-737284/)

steviedeluxe Oct 30th 2011 7:49 am

Re: Buying a House? Why Wait?
 

Originally Posted by HBG (Post 9704769)
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.


I'd like to see these "reliable sources" that can predict many years ahead. Put it this way, who can really predict what the situation will be like in just 18 months (April 2013). By that time the Euro could have gone (or rocketed), interest rates could still be low or above 10%, and inflation could be over 20% or less than 2%. Please tell me one person who's predicted the pound-euro rate correctly over the last 2 or 3 years?

In fact, thinking about it, I don't think I could trust a 6 month prediction from so-called experts.

jdr Oct 30th 2011 9:00 am

Re: Buying a House? Why Wait?
 

Originally Posted by agoreira (Post 9704119)
(possibly more by living in Spain: less stress and a better diet)

Never quite followed this line of thinking. :confused: 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.


Originally Posted by agoreira (Post 9704788)
Yes, wish we could have things like fruit, onions, peppers, tomatos, olive oil in UK. Things we can only dream off, eh?


Originally Posted by agoreira (Post 9704871)
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. ;)


Originally Posted by agoreira (Post 9705047)
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!:rofl: As for tomatoes, I´m still eating my own, they don´t get any fresher or better than that!;)

Hold it, maybe we should all move back to Agrodiarrhea`s promised land as it`s soooo bad here. :rolleyes::rolleyes:

Rosemary Oct 30th 2011 9:54 am

Re: Buying a House? Why Wait?
 

Originally Posted by Lionda (Post 9704822)
I wouldn't buy in Spain, wouldn't touch a property for sale with a barge pole :thumbdown:

I would have thought that you would be happy now that you are back in GB.

Graham

Rosemary Oct 30th 2011 9:57 am

Re: Buying a House? Why Wait?
 

Originally Posted by casa del sol (Post 9704991)
There is a little saying and it goes like this..."don't leave your brain on the plane".

Why not? There appears to be plenty who leave their real past there.

Graham

JLFS Oct 30th 2011 10:12 am

Re: Buying a House? Why Wait?
 

Originally Posted by The Oddities (Post 9705195)
Why not? There appears to be plenty who leave their real past there.

Graham

I think the phrase was made for the inspection trip folks, who were "held hostage" for a few days, not allowed to mix with outsiders, as every move was controlled by the reps.

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.

Domino Oct 30th 2011 11:46 am

Re: Buying a House? Why Wait?
 

Originally Posted by agoreira (Post 9704788)
Yes, wish we could have things like fruit, onions, peppers, tomatos, olive oil in UK. Things we can only dream off, eh?

another typically crap posting where you take half a sentence completely out of context and try to twist it to what you want

Domino Oct 30th 2011 11:48 am

Re: Buying a House? Why Wait?
 

Originally Posted by Lionda (Post 9704822)
I wouldn't buy in Spain, wouldn't touch a property for sale with a barge pole :thumbdown:

there spouts the gravelly voice of experience

pwwm Oct 30th 2011 9:10 pm

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.

:thumbup:

jackytoo Oct 30th 2011 9:33 pm

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 coín 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.

scolly52 Oct 30th 2011 10:11 pm

Re: Buying a House? Why Wait?
 

Originally Posted by Domino (Post 9705346)
there spouts the gravelly voice of experience

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

Domino Oct 30th 2011 10:54 pm

Re: Buying a House? Why Wait?
 

Originally Posted by scolly52 (Post 9705975)
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

luckily I can see that quoting my previous post has nothing to do with your comments ;)

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.

scolly52 Oct 30th 2011 11:00 pm

Re: Buying a House? Why Wait?
 
Been try to curb this habit I have of randomly selecting a quote regardless of relevance. :o

frigilianafreddy Oct 30th 2011 11:54 pm

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.

cricketman Oct 31st 2011 12:08 am

Re: Buying a House? Why Wait?
 

Originally Posted by frigilianafreddy (Post 9706102)
I look at rental returns to assess "right pricing"

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

frigilianafreddy Oct 31st 2011 12:43 am

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.


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