Re: Buying a House? Why Wait?
 

Of course, you didn't have holiday makers from loads of different countries interested in buying in northern England either.

Again - how well did you predict the pound-Euro rate over the last 5 years? If you were the same as most of us, you'd probably have been miles out.

We are heading for "interesting" times. Yes, if you hold off for 2 or 3 years you may well save even more money on buying your house. But there is always the danger of mega-inflation. I've seen something similar in house prices a couple of times already in my life time, and I just get the feeling that next time will be even worse (in a world of money printing, quantative easing and globalisation). The difference is , if I'm wrong, you still have your house that you've bought albeit at 25% more than you could have got by waiting a while (I'm assming we're talking about someone set to retire and has the money). If you're wrong they completely miss out and rents double in a year, or they are forced to buy the wrong house in the wrong place because all the decent areas have kept their value.

If you can find a place where the rent is guaranteed for at least 10 years, I'd agree 100% with you. Are there such places (genuine question by the way)?

Re: Buying a House? Why Wait?
 

I did not give the pound euro rate a second thought, it has been quite an advantage for me actually.

Rent doubling in a few years, Idont think so, because there are so many people with empty properties that they would like rented now matter how little it brought in.

The thread started off by talking about older people who have a good reason to buy now because they dont have much time left, that was the gist of the posts.

I answered from the point of view of the older buyer. Saying that it may be better than renting.

Just as no one can predict the pound euro exchange, they cannot predict what their health will be in a few years time, especially for the folks of a certain age. Far better to have paid money in rent, easy to get out of, than to have capital tied up in a property that they need to liquidate in a hurry should the need arise.

Re: Buying a House? Why Wait?
 

So how do you know which is which?

Re: Buying a House? Why Wait?
 

I think the fault lies more with the system, rather than individual lawyers. I used a competent lawyer and bought from a respectable Spaniard. There was black money involved which was normal when I bought.

It was only when I considered selling, many years later, that I found problems, and those could be of my own making, i.e. not understanding the system.

Before I bought my house, it had been substantially added to and improved. When I asked the same lawyer if proper planning permission had been obtained all those years ago he merely shrugged his shoulders and reminded me that I was living in Spain.

I should have accepted this logical information, but persisted and discovered what I already knew - more than half the present dwelling is 'illegal' to the British mindset. I foolishly asked about making it legal now and a kindly Spanish official at the town hall told me that it was impossible, and that if I persisted with my foolishness they would have to demolish the illegal additions to the house. Effectively, the whole house would be demolished.

So I've adopted the Spanish way now, what does it matter? It's a great house, I can sell it if I want to because no lawyer is going to bother about extensions built over 30 years ago.

There's one small niggle. The outside pavement still contains the previous way into the property, and although there is now a high wall in place, I've found myself reversing the car over this logical driveway. If I got through the thin wall, I would be straight in the deep end of the swimming pool.

Re: Buying a House? Why Wait?
 

That is the question isnt it?

How indeed, you find a competent lawyer who is dishonest.

An honest one who is incompetent.

And if really unlucky an incompetent one who is also dishonest.:D

Re: Buying a House? Why Wait?
 

But the bank will if your buyer requires a mortgage. This is what has happened with ours and we have 70 years of unregistered additions to get regularised. It is costing a fortune and taking ages (although, thankfully, can be done). The bank will not give our buyer his mortgage until this is done.

We were also told similar to yourself when we bought it, (the shrug), but we didn't need a mortgage, so the sale was sable to proceed.

Had I have known then.....etc.

Re: Buying a House? Why Wait?
 

If we see really high inflation then we may see rents doubling in the cities like London and Barcelona

But it wont double in the rest of Spain as there is so much housing stock. In fact the inflation will make housing costs more affordable - as house prices and rents wont go up anything like at the rate of inflation

The big BUT is whether a person's income will increase with inflation. For those where it does, they will be much better off as they would see their debts decrease hugely and housing become more affordable, but for those with income not linked to inflation, they will suffer terribly

Re: Buying a House? Why Wait?
 

That's another worry, regardless of wherever you live. If inflation takes off to 10, 15 or 20% how do you protect your savings and/or income? Currently returns on savings and investment are pitiful.

Re: Buying a House? Why Wait?
 

Yes, it is a worry and people should make provisions for it

Personally I will use my savings to pay off part of my UK mortgage if such an event happens as with high inflation mortgage interest rates will probably shoot up too

Pensions are linked to inflation anyway I believe, as are wages/salaries for most jobs, so most people will be OK

Re: Buying a House? Why Wait?
 

Perhaps I am missing the point here, are we talking about buying for investment as a number of responders seem to be saying or is it for a home to live in. My attitude is based on buying a home not sitting around waiting for the market to 'bottom out' to buy an 'investment'
Not quite sure who is talking up the market as most advice found about spain and housing/jobs consists of "Run away"
We bought our first home in 1969 and continue to enjoy every available moment of living in Spain despite the doom and gloom merchants.

Re: Buying a House? Why Wait?
 

As someone who likes to move where they live every 3 or 4 years, then buying in Spain makes no sense to me. What with the 10% taxes/fees you have to pay every time you buy a house

If people want to buy a house "forever" then sure it is still worth it in Spain. Buit forever is a long time and for a lot of people renting will be more convenient, less stressful and a lot cheaper

Re: Buying a House? Why Wait?
 

I could not agree more. While I have worked pretty much all over europe I have only moved house 3 times in the UK and 3 times in Spain over the last 40 years. Each to their own.:thumbsup:

Re: Buying a House? Why Wait?
 

The point I was making about pensioners buying instead of renting.

I was not at first talking about investments.

It does not makes ense to me for a older person to buy a property unless they will not need to sell up to fund care or to buy a home in the UK, due to health, bereavment or other problems that come with age.

Also having to pay alarge percentage on topof the price ofthe property would boost up the money tied up with no return on it, because 10 perecnt extra spread over 30 years is not too bad,but spread over 5 is not so great.

That extra percentage would pay an awuful lot of rent and still the bulk of capital would be left.

It would also save the families having to sell the property aqnd the hassle involved and pay taxes due.

As the original post on the thread says that older people dont have much time left so they should buy and enjoy it, I am stating my view that brcause they dont have so much time left, it makes not sense to buy, and renting is wiser.

I would not call that doom and gloom.

Re: Buying a House? Why Wait?
 

I agree completely. We like our present house but have to acknowledge that it may become less suitable as we get older due to lack of vehicle access. We'd like to sell in about 5 years' time (if we can!) but would not consider buying again, for exactly the reasons you give. The 10% buying costs would probably amount to at least 3 years' rent, we can invest the capital from the sale of the house and hopefully keep the capital intact in case we need to fund care costs in later life, and not least, our heirs will not have the hassle and expense we are currently seeing our late friend's sister going through. She has had to find over 20,000€ to pay inheritance tax on his Spanish house, even before she is in a position to put it on the market to try to get rid of it.

Re: Buying a House? Why Wait?
 

No one will be better off as companies and pension funds will go bust left right and center :thumbdown: