jojojojojo

I think thats been spoken about before on here. But dont forget how much money spain owe - if they went back to the pesata, their currency would devalue and go "bang"!

Jo xxx

casa del sol

I thought the Spanish government's debt was reasonable compared to some of the other EU countries. I thought it was the banks that have the bigger problem.

jackytoo

I don't think the Dutch, Germans etc. will make much of a dent in the surplus. They have traditionally low ownership in their own countries.

Said in Spain news last week that even the VPO aren't selling as banks aren't lending. It took our buyer 2 months to raise a mortgage and he only needed to borrow 52% and is an eye specialist. We dropped our home more than 200,000. We knew what he could afford being a relative and because we bought it about 12 years ago a lot of it was paper profit. We still went back with more purchasing power than when we left so we were happy and so was the buyer. Still wish we had kept our property in kingston upon Thames and not put all our eggs in one basket in Spain. Kingston properties went through the roof after we sold and they are still going up.

bobd22

I have no idea what the Spanish want but depending how this fiasco with the Euro goes they may have little choice in the outcome like I say who knows possibly Mrs Merkel has an idea. I did see in the paper the other day that whatever happens the British Government do not want the pound to increase in value too much due to exports, so I can't see the pound going back to 1.60. I am sure it would be a very difficult if not impossible situation to quickly revert to whatever your old currency was, look how long it took to bring in. Maybe the answer is a med country Euro which could be devalued and a North Europe Euro i.e. for germany Holland etc that could keep a strong pound/dollar rate, call them Eurom and Euron for instance. Problem with that of course what about northern countries like Ireland and even France which do they tie themselves to?

Lenox

What's wrong with buying a house now? There's more to life than waiting/wasting a few years just to get a better price.

jimenato

Nothing, apart from you could rent and save yourself a shedload of money. 'There's more to life than buying a house...'

chrisjolly

I totally agree with your perspective but people buy property for different reasons wherever they are in the world..mostly buy as a home and a base so you pay whatever the current price is; there are those who buy for investment or rental and in that case I would say DO NOT buy in Spain. Its going to be economically in the doldrums for years.

scolly52

Spain owes the six biggest lenders to the €urozone about 550€ bn. They owe Germany 180€, France 140€ bn, the UK 100€ bn and USA 40€ bn.

It does not matter in what currency you owe money, the debts still have to be settled.

But When it comes to public debt Spain is in a better shape than Germany.They have more stable deficit though at 1.7%. Regardless,Spain has a banking crisis and a sclerotic labor market. If the banking sector gets a reform,coupled with structural reforms-Spain has every chance to get out quicker than Italy.
The political elite in Spain is also much more serious than those who live & rule in Berlusconia Land

Perhaps this thread should be re-named 'Do not buy in Spain at this time if you are only in it to make a profit not a life'

jojojojojo

What would it do to their import industry tho ???? Even just the basics like oil, petrol, fuel etc???? without which the country would grind to a halt in everywhichway!

Jo xx

johnnyone

Well put. You can go through life always waiting for tomorrow, however it never comes.
I would have no hesitation in buying in Spain at this time. However I would do my research and choose my location carefully. As with everywhere else it's all about location.

Domino

Spain cannot be compared to Germany - the former is more of an agricultural nation than the latter which is industrial. The two will never be able to meet on an equal basis, especially with the Germans wearing their hair shirts over their propping up the rest of the EU. But in these unions that is the responsibility of the industrialised nations, whilst they are fed by the agricultural nations, such as Spain. Otherwise how does the USA stay together.

Spain has a larger industrial base than Greece, which has none. France is not balanced as it is more agricultural than industrial, hence all those years of the Common Agricultural Policy (CAP) that caused so many arguements. That is why Greece wanted in - to leap on to the CAP bandwagon, which they did with glee.

Since 1864, when the real was replaced by a new Spanish escudo, then by the peseta in 1868, and now in 2002 by the Euro Spain has had a chequered currency history. But that is a recent change and despite the 2011 exercise in Murgados where more than 60 shops reintroduced the peseta (accepting it alongside the euro), I believe the Euro is here to stay. Unless Spain wants to float in a pool that is full of bullies who will kick the hell out of it.

.

Kenwoodlad

I never did do as I was told. We have just become the proud owners of an old, traditional town-house in a wee village between Oliva and Gandia in the Valencia Region. We have bought it as our future retirement home, not as an investment. Yes, there are going to be tough times ahead. But at the age of 60, I've seen previous tough times and we've come through them. There's an awful lot of doom and gloom being peddled by people with vested interests so while I'm not pretending all is rosy in el jardín español, neither has every single thing withered and died.

Prospero año y felicidad a todos.

bobd22

I tend to be of the same opinion we bought a little village house 4 years ago to retire to (yes totally bad timing I know), we bought it to eventually live in. we have struggled through the poor exchange rates with a mortgage and accept that it is not now worth what we paid for it. However 2 weeks ago i retired and have just come back from the bank where I have transferred enough cash Euros bought on forward contract that when I visit next week I can pay the mortgage off. Yes if I had waited till today to do the exchange I would have got more but for me the fact that I have been able to sleep for last 10 months was worth more. We will then visit for longer stays initially and hopefully fairly soon full time. We have one daughter who loves our little house (wouldn't be every ones cup of tea I know) and she said today well Dad that's the family inheritance we can just keep passing it on. So for me at least we have survived and we now just look forward to enjoying our life and Spain whatever currency they have we won't no doubt be as well off as we thought but will get by

Nigeljay

Well said Kenwoodlad and bobd22. Buying a home is not all about the best investment although one should always bear that in mind. Waiting for years in the rainy UK when you want to live in sunnier Spain just because the "time is not right" is a fools choice. Life is for living. If your life satisfaction is getting a rich return on your property investment then well and good. If it is enjoying the sun, the outdoor life and the Spanish culture and you can live comfortably then do it. Don't wait. That is my opinion and I'm sure others will vehemently disagree with me.

JLFS

Apart from renting v buying in monetary terms, there is another which is perhaps a more important factor to consider, age.

I dont see the point in buying when "older".

Dont forget so many older expats have to return to the UK for health/care etc reasons.

I dont see the point of buying only to last a few years living in the sun, renting is far better.

Cheaper in the long run and saves the hassle of selling, or leaving it for family to sell.