poollounger

But Ivan there are some who think that the housing bubble has burst in Britain too...I know there are developments in the South east that are fuelled by various dubious factors. People are buying in Stratford to speculate on prices rising because of the Olympics. What happens afterwards ?? Developers in Kent are trying to offload sites that they can no longer make a quick buck from...look at the problems facing major developer Countryside. I think you maybe correct, but it is not restricted to Spain. The Economist periodical had a feature saying that prices world wide were too high, that the housing market was overheated and the buble would burst having consequences everywhere. My sister has a house in Scotland to retire to that has doubled in value on account of SE Englanders selling up and moving there to buy large houses and live an easy life. She lets it at well below the going rate to cover her outgoings and had 18 weeks of letting this year.
The same in France. I think the crunch is when these people have spent their equity ,can no longer fund their lifestyles or find employment, that the market may crash. I bought a rental property in Gravesend Kent 3 years ago. A friend who did the same but did not work out his sums so well is selling his as his returns are lower. I make no profit but am in for the long haul not a quick buck, as the estate agent who gave me excellent advice agreed this was the only basis on which to proceed.
The Telegraph had a feature advising people that they should only purchase second homes if they can be funded from existing income, and not to be reliant on rental income. I can understand your cautionary warnings, but generalisations are not always appropriate.

ivanmax

I think I am being quite specific. Do not buy in Spain. A Phd in economy in the Universidad complutense de Madrid (most reputable university in Spain) said last week on the radio that to buy a house in Spain you would need first to be crazy.

I think that says it all.

Iván.

poollounger

Perhaps he was referring to the buying process rather than the market??

Loco

Thanks for the link Iván.

I agree as a short or Medium term investment in general buying a house in Spain now would be Crazy. This is especially so with such high acquisition, transaction and holding costs.

Long Term it probably will be ok but of course it is still better to buy at the bottom and sell at the top and market cycle is near the top now I for one will keep renting.

Best
Loco

Mercedes

I brought a house in Spain, but its for me to live in and not for short term investment. I brought it over buying in UK because I got more value for money and I like Spain and the Spanish people. I have great neigbours who I find very hospitable and helpful. But you comments may also be that because so many from Northern Europe have brought in spain and the demand by them, it has inflated the prices that the average Spainard finds it more difficult to buy. Many people have made alot of money out of Spanish property being sold to non Spanish Nationals and some have also lost. Depending on when someone buys and sells, it doesn't matter what t country they buy in, they can either make money or loose. Whether someone is crazy or not depends on what they want out of life and of course their own individual circumstances. Buying in UK can also have it's down side as well, with inheritance taxes, captial gains, council taxes blah blah blah, not withstanding that they are also expensive.

Nige

Personally I am a bit of a sceptic. I mean I have heard of Croatians with the name of Iván but never a Spaniard. Is that being TERRIBLE ? he's not even in this list of popular Spanish names: http://www.behindthename.com/nmc/spa2.html
think we need some more biodata?
My Spanish Estate Agent is called Immaculada and that is 'Immaculate'

Beachcomber

I think most of us are capable of deciding what we want to buy and where without advice from people like 'Ivan'.

Loco

Given in the boom times 30% of foreigners who have bought property in Spain have ran into serious problems * Iván pointing out many experts predict a fall/bust really should not be ignored as when markets fall.......

Best
Loco

Source: Spanish Property Insight

Loco

IVANMAX is an Italian DJ. Trance I think but I am getting too old....

That said have you ever heard of a Englishman called Loco or Nige

Best
Loco

poollounger

Lets not descend into name calling and getting personal please. It would be interesting to see if the concept we have of each other from our profile names actually tallies with the way we really are..am I really 17 stone, pot bellied and balding?? I may be but on the other hand I may not....
What interests me is why Ivan who, I presume, has no property in Spain, and no interest in buying one has gone to the trouble of enrolling in this forum?? Is he a such a kind and caring person that he feels he has to warn us all before we descend into negative equity and bankruptcy??
What about the banks Ivan?? All those Spanish mortgages at 3% ?? If the market goes bust and people walk away from their houses and aprtments what will they do ?? I was in negative equity for a while in the early 90's but came through it. Yes one needs to be sensible when making any investment.....overgearing and relying on letting income has been advised against by the British press. I looked at Costa Esuri at Ayamonte at the start of my search..the show house is very seductive, and the pressure to buy there was intense...buy now now now as the next release is definiteley going to be thousands more. This the sort of hype of which one should be wary, in Spain as much as anywhere else, including Britain. I know of people who bought a Docklands apartment for £750,000 that was valued at over a million a while later, and now is back to what they paid for it, if they can sell it. The talk is of City bonuses being massive again this year as profits from mergers and acquisitions build, and this filters through.......maybe. What we all need to be sensitive to is pricing the locals out of the market, as I was told they often cannot afford the houses we buy, like the first time buyers in the SE of Britain. Incidentally Ivan, be interested to know if you think the influx of buyers in France are also being deluded??

Beachcomber

I can't quite see the connection between my post and your reply!!

ivanmax

I live in Madrid and the buildings are covered of signs advertising houses to sell. Apparently the market is frozen and nobody with half a brain is buying anything here... Well a 40 square meters one bedroom flat can go easily for 300 thousand euros...isn´t that a bit crazy?

poollounger

Is Madrid comparable to London??? That would be a very reasonable price for most places on a tube line...perhaps you are familiar with prices on the southcoast ?? A friend of mine sold her flat in Brighton to be near her family, but couldn't find anything except a shoebox for £150,000 in London... and that was up near Haringay.. along way from the centre. She has moved back down to Bexhill on Sea....

antonio_dpo

I live just outside Madrid and I can´t see who has money to buy here now.Everyone I know is completely out of loop.There must be a lot more rich than poor people here.

GCM

Spoke to a Costa Blanca estate agent on Friday who I know. Things are slow here. Many people are very very keen to sell. Advice was to forget the price - go in and offer at least €100,000 less and see what happens.

Houses that are aware of the slower market and are priced correctly are selling quickly it's just that so many people haven't yet realised where the market is right now - it's gone down and if you are selling, sorry but you missed the peak.

Mark (No vested interest whatsoever)