Nice to see you back Stevie, Happy New Year.

I think the Valencia investment could be a bit of a gamble in the short term.
One or two recent shopping malls are really struggling to get established with some big stores having had to pull out in the last year or two, not long after opening for whatever reasons.

There could be a number of reasons behind increased property sales with increasing concern about both the euro and the banks, but one interesting fact is that the increase coincides with the enforcing of strict new regulations regarding EU citizens with funds in offshore accounts and full transparency of the same to the appropriate tax authorities.
The new regulations were due to come into force back in July, the beginning of the third quarter, say no more, a nods as good as a wink.

Any increase is good news, however the figures are of course compared with the same period last year which was pretty grim. I think the comment at the end of the article sums it up nicely.
We have Spanish friends that rent out six of their up market properties and they seem to have weathered the storm, their bookings have been good the last few year as their customer base tends to be wealthy people. However, looking at all their next year's bookings, there are lots of big gaps, something I've not seen previously, I hope they pick up in the New Year.

Well the Olive Press article is just PR from Taylor-Wimpey something which they do almost everytime any bad news comes out and they try to twist a negative into a positive. Bit different from the link HBG posted from El Pais. Also there was this one just before Christmas.

House sales reached a record low in October...good news is that they were not as low as September

http://www.diariosur.es/rc/20111213/...112130918.html

First of all, Happy New Year, let's hope it won't be a too bad one. Unfortunately we cannot really hope for a good one!

As many of you said, I don't expect it to be the best ot times to buy a "villa" on a coastal area or in one of the many foreign ghettoes in Spain. Not even in native villages as there are little jobs and therefore not reason to stay. Too many houses are still in the market and there are too few buyers, many people are simply waiting to sell their house before they can go back to their countries. It will also be difficult for them if they didn't keep a house there, but at the end of the day, people are to adapt to the current times and their current budget.

We have seen many migrations before, this is only one more. People have to get ready to live in houses or places they simply don't like but can afford, and hope to go back to the ones they do like in a few years time.

Nobody in their right mind would buy now in tourist areas; prices are for sure to go down for at least 2-5 years more. As per renting... many people are too worried about money as to rent good places abroad, and for what my parents told me, back are the times when 2 families shared a rented place in Spain, so no more crazy holiday rental prices. Holiday rental houses are looking more and more like "patera flats" (as in many people living in a small place).

However, I do think that once I'm back to Spain I'll be looking at a cheap property in a city, to let out to University students. Nothing that needs serious work, make it up nicely, and never rent it to a family as they are too protected. University students are the best choice. I can see city properties going up faster than the ones in holiday or retirement areas; they have more job opportunities and there will always be students. Not so much money for luxuries as holidaying in nice places.

So yes, I will take the risk of buying a property once I'm back, but forget about "paradises", it will take a lot of time for them to recover and attract money again.

Buyers are definitely thin on the ground nowadays, but some people do still seem to want property in Spain. A Norwegian couple who have had a holiday home around the corner from me for about 5 years completed on the purchase of a second property, 15 minutes away at the coast, a month ago. They are not selling the first one, but keeping it for their daughters to use and to rent out occasionally. I don't think a sunny climate is the biggest draw for them, either, he works in the oil industry and has been based in Brazil for the last couple of years, so he must get plenty of sun there!

I'd love to buy in Spain and have the cash to do so. Problem is there are too many people with a completely unrealistic view of value. People like me are not bargain hunters or pariahs we are sensible investors. If others bought at the wrong time or are choosing to move to the UK at the wrong time one may sympathise but don't expect one to extend that sympathy to paying more than the real value. There have been some interesting views expressed here and not surprisingly some of them use emotive language.

For anyone wishing or needing to move to the UK there hasn't been a better time for years. With the right deposit mortgage rates are at the lowest point for years and so are prices. With not enough for a deposit and nothing in the bank go rent a nice property then ask the government nicely and they'll pay all or a large proportion of the rent - I had a tenant some years ago who had a budget of £650 per month just for rent, no council tax to pay and social security on top!

I hear the latest trick is to move your name off the Spanish deeds, rent out your property long term then use your Spanish bank card to pick up the rent from your Spanish account. Completely unprincipled, dishonest and one hopes such people are caught but make no mistake they won't all be!

One view I completely agree with is that of the Spaniard who sees the Northern Europeans as the reason why the next generation cannot afford property. Prices will continue to drop for some time yet - a couple of years at least and then recovery will be very, very slow. None of which matters for anyone who is buying a home.

How can one do that? Surely that means costs - notary, 7% transfer to another name. Who's going to be willing to put their names to your property presumably having a mortgage on it (or else what's the point in doing this)?

That's interesting. Why do you think that?

thats right.................and once a name is off the deeds, that person no longer will have an interest in the property, so cannot rent it out to anyone.

On the whole, the message seems to be not to buy just yet, as property prices will still fall. There are two sides to this, property prices are falling in the U.K too, for example my house (in a desirable location), was valued at £325,000 four years ago, and despite adding a conservatory (15,000), new kitchen(10,000) a new main bathroom (8,000) and a new en-suite (4,000) ,i.e. £37,000 in total, I am not getting ANY viewings at £295,000, that's just the way the market is in the U.K. at the moment so I'm thinking of taking my house of the market until it picks up again. (p.s. anyone want to buy at £295,000 ?), near to Wimborne, Poole and Bournemouth

Whats the market like in the Canaries?

UK market isn't that bad, it has only fallen 20-25 percent from the peak thanks to low mortgage rates but buyers want their pound of flesh and won't pay extra for better located properties and won't take any risks on unusual properties. Mostly Mr and Mrs Boxster clothed in Mangolia fueled by government related incomes.

If you want to buy now in SPain you have to make an offer that takes into account a further 33 percent fall.

Another third off...wow......What will that be all in all....

I would be interested to know where you get those stats? You might be taking about "true" house prices i.e. taking account of inflation?
Prices continue to fall in less desirable areas of the UK, but in some more affluent areas, prices are rising In some areas of UK, prices are above 2007 high. See Nationwide Q2 press release
I have no idea how you guestimate a further 33% fall in spain? I would agree prices will likely continue to fall on the Costas, but how do you justify 33%? and would that be in one year, or 10?

you can get a 1 bedroom Apartment for 50,000euros..Or a Bunglow for 55,000euros.