Douglas jack

You better get to understand it if you are comming.

Big_john

Moneylending with lien's attached

thenubiangod

The news presenter in the video was basically saying (literally) that the Spanish bubble has exploded. You may find easier to read these articles from today news:

http://www.larazon.es/noticias/noti_eco5072.htm

http://www.elperiodicodearagon.com/n...sp?pkid=316336

http://www.elpais.com/articulo/econo...lpepueco_3/Tes

And this may well be the end of the game.

thenubiangod

Although you may prefer the English version

http://www.telegraph.co.uk/news/main...5/nspain25.xml

http://www.bloomberg.com/apps/news?p...d=a3CkVkudjbZ0

Does anybody think this is not the end of the game?

Douglas jack

This will hit a lot of people who have bought of plan,builders will not be able to draw down wages for completions,but looks like there could be bargains coming,looks like insolvency for some major players,small builders should still survive.

Big_john

I do not think that this is the end of the game, it may be the end of the game for the major construction companies where they are trying to squeeze everyone into their apartments or thier little house on their 800sq mtrs, but not if you live in the country and have a finca or country house.

It is not as bad as Daily Papers print, as alway's without Papers printing doom and gloom what else would sell, something I cannot stand is reading all of this crap in a Daily Paper.

So what do you suggest everyone does not buy and wait 10 yrs, yes I am sure that the market will change with some drops but I very much doubt if you will see a crash.

Buying and selling houses both here and in the U.K. since 1963 has never hurt me, sometimes it's up a bit more and sometimes it's down a bit but overall it does tend to average out.
And if people were worried about the boom in house prices here in Spain, then they missed out on that some 5 yrs ago, when they were at their peak to make any money after that prices have settled and dropped a bit.

Look at stocks and shares & you will see that there is a cyclical movement and that since the 2nd world war property has outperformed shares peaks and troughs.

This property thread really is all doom and gloom for people thinking about a move to their new country, which will never happen & they might even make a little bit because they will be buying at the right time

Unexpat

Well, if we're talking about a crash similar to the 90's UK crash, then it's a crash - not stagnation, or anything else. People will be left with negative equity. Whether it matters depends on how you funded your purchase, how rich (or poor) you are and why you bought. To ignore the possibility of a real crash is insane, since it implies you don't make contingencies for it. That's not doom and gloom, that's just common sense. No one wants to find themselves stretched to pay for their home in the sun, if they funded it based on a healthy economy and a continuing healthy income.

We all know that long term, it's all roses, but life has a habit of making things inconvenient for one and often there just isn't the luxury of time to ride out a trough, particularly if it is a bad one and other pressures come to bear.

That said, I still think that there are some months to go before the bite really hits. The media has a habit of looking for the sensational and will always distort what, in reality, is dull economics (to many) in order to make it digestable to the masses.

Finally, as discussed previously in this thread, location, location, location will factor heavily into how much of a hit is seen for individual properties.

Big_john

If you are taking out huge borrowings to buy your house in the sun without looking into the reality of proper work, contracts guaranteed over a certain period then you are asking for trouble.

The reason these Spanish contractors have been having it so good is because of the equity that has been taken out of brits houses in the U.K. to fund their house in the sun in the first place, and accepting Spanish prices which started coming down 5/6 years ago, this isn't something that has just started.

I've been building houses all of my working life, and here in Spain for the last 20 years, but unless you already had land and could guarantee a sale the boom stopped 5/6 years ago.

There is alway's location location as you say, and I quite agree with you ....the media I cannot stand the hype that they generate.

In the U.K. when the downturn came was the time that we started to buy land and sit on it in preparation for the next growth in the property market

There are areas here in Spain such as Galicia that is still experiencing a growth in the property market,Lugo had I think the highest growth in this last year and no I am not advertising as I have nothing to do with it.

There are some others as well such as some parts of Asturias, probably Extramadura, but I do think that the Costas are burnt out as regards making money

TheArmChairDetective

Hey Big John,
Surely that means the next phase, if it follows the UK of old, is that you will be buying up Large resale properties that cant sell and turning hem into luxurious apartments for sale?

For evidence I site any canalside redevelopment currently being sold in the UK
Bristol, Birminghum, etc etc.

Big_john

I reckon you are probably quite right ..... someone will pick them up, just look at Wandsworth Bridge both sides of the river in 1976 say and today.
It used to be all old Industrial Units owned by the Jewish family Freshwater Properties I used to do a lot of their maintenance back in the 60's, they also owned a lot in Croydon, Redsan Works, can't remember the name of the road though these day's

Now Wandsworth both sides of the river is luxury flats

Same with your idea urban regeneration schemes

omostra06

TheArmChairDetective

There you go, I knew there was a posh word for it.
Have you started looking around yet?

Big_john

Nah, I've lived & worked here for the last 20 years, the U.K. would be like going foreign again

And all those foreigners who speak a funny language

sortedtoo

Shares in spanish property company's rose today !

jdr

Everyone selling quick to get out probably ;-)