Re: Has the housing crash started yet?
 

I perhaps am in an envious position having sold an apartment very quickly( 6 weeks) at close to asking price but as in England it is down to location and being perhaps slightly out of the ordinary. Ours was a 3 bed 85 m2 apartment in an area where the vast majority are 2 bed 55/60m2 holiday type lets and we were lucky to find someone who was buying a home not an investment.

Working in an estate agents in England I can confirm it is slower but people are buying and are buying homes not a quick return. The entry of HIPS has reduced speculative sellers just trying the market out and the buyers are those who actually need to buy; be it work, matrimonial or downsizing being overstretched. Our Uk house has been on the market now for 4 weeks and have had 4 viewings to date with another second viewing this weekend; so considering the alarmist media we are not disheartened with progress so far nor panicking to reduce for a quick sale.

The big difference as someone has pointed out and why I firmly believe the fall will be less much in the UK in general is there is a fundamental undersupply of property. I think the ratio of new "homes" built in Spain compared to England is 3:1 and there is no way the builders have the desire to ramp up completions at present and by and large the only returns they have made in the last few years has been pampering to the Buy To Let market where they can achieve the units per acre to be profitable. With UK Lenders either refusing to lend on BTL apartments or a maximum Loan to value of 75% this end of the market is going to be out of reach of the casual investor especially as rental rates have not increased with the numbers of properties coming onto the market.

The biggest problem in the UK in the last few weeks has been the big Lenders making high risk lending, and by this they mean above 75% loan to value or those who have had even minor credit problems, just too expensive for the First Time Buyer who cannot borrow sufficient when over 75% LTV plus having top pay around .75% more for the pleasure. Without a scheme to help them will slow the market down but I am sure many builders will now turn to local authorities to offer their surplus properties (apartments) for "social" housing to bail them out which may help FTB's buy at affordable prices and rent the balance as shared ownership.In summary; it is slower in the UK but not as bad as the press make out and don't expect to achieve last years prices just be realistic and check out the competition before marketing and select your agent carefully for being the most proactive NOT the cheapest.

Any monkey can sell on a rising market it's the more established , dare I say Independent ones, who have the experience and depth of knowledge to create opportunities on a falling one and find the elusive buyers.

Re: Has the housing crash started yet?
 

I'm thinking of moving to Spain near the Mediterrenan & an offplan property suits me as I haven't sold my house yet. After reading this thread, I'm not sure now.

Do you know for a fact, that many people have problems with offplan properties or it is just a few? For those having problems with offplan, do you mind telling me which areas/cities in particular?

Thanks.

Re: Has the housing crash started yet?
 

At the end of the day if you buy then all you are doing is moving your equity pot of dosh to Spain....we bought 2 properties mortage free, 4 yrs ago now, one we are just selling and have made a small profit, but also had 3 yrs rent from it, the other we hope to make a larger profit from.
But ultimatly it is our home. We bought both places thinking of the resale points for each, up and coming areas etc, appeal for parking, amenities etc.

The market has slowed down, but then it has in portugal as well it took my dad a year to sell his flat, and his friend has had his house on the market for 2 yrs now and no offers at all. Its possibly not only due to the slip in demand (not helped by the fact everyone has too much debt in their own country) but also by greedy developers, who slap apartments up like their making sandwiches for a cricket match, regardless of the fact the demand has dropped.

Re: Has the housing crash started yet?
 

There are people who have had problems with off plan properties in the UK, so its not strange to Spain

The key is doing your research. Go to the immediate area you are buying and knock on peoples doors and ask them were they happy with the build. Use a totally independent solicitor, if possible a recommendation. Pay by stages.

We bought offplan and have been generally happy. It was finished just a month late due to bad weather at the time.

Re: Has the housing crash started yet?
 

Good advice. Personally we'd not touch new build - having rented a new build apartment when we first came out, they had huge problems. Our neighbours who are renting the house next door to us are waiting for their new build house to be completed.... was due for completion in January... and still waiting... latest date they have been given so far is June.....I told them not to hold their breath!

Re: Has the housing crash started yet?
 

and thats why its important to research fully.

I used to go into new homes by leading builders in the UK and hear the same stories, and added to that the standard sometimes was absolutely dire. Huge snagging lists which took sometimes years to sort out

Re: Has the housing crash started yet?
 

Thanks for your reply. The problem is that I don't live in Spain & can't go round knocking at the doors.

I'm only interested in the Costa Blanca areas (eg. Murcia, Alicante, Almeria).
I want to buy a new villa & it seems that only offplan suits me.

I'm doing a lot of research but hearing experiences from people is a real help in making my decision. I would love to hear from anyone with good & bad experiences with offplan in those areas, please post here.

Re: Has the housing crash started yet?
 

Read the Free Beer thread for all the things you must not do. Biggest no no is do not use a solicitor recommended by your agent if you use one and do not have a solicitor connected in any way to the builder.

Re: Has the housing crash started yet?
 

Why not just buy our house.....:D Its over 400 yrs old, no problems there!!

Re: Has the housing crash started yet?
 

Yes I realise that, but neither did I when we bought here. So we came here and when we actually found a place we wanted to buy we went and asked locals if they were happy with the builder. I did some research on the internet for the builder, and the estate agent we were working with gave us some background also.

You will obviously visit the urb at the time you decide to buy, so at that time you just go to a few houses nearby and ask.

The Costa Blanca stretches right up here to Denia / Gandia / Javea as well you know .... if you look up here I can put you in touch with an agent who has good reviews from others on here as well. Trying to do it on your own is quite daunting, at least we found so. We were coming here for a year or so on our own, and the first time we met this agent he found what we were looking for!

Re: Has the housing crash started yet?
 

Thanks for your offer. I'm not doing it on my own & have an agent. Have you heard of spanishlifeproperties.co.uk? It's just that I want to do more research myself. I think they're based in UK.

Thanks for pointing this out. I've read that thread & I realise that I've to find a different solicitor. This forum has very useful info. Thanks to everyone.

Re: Has the housing crash started yet?
 

We were in the Murcia area recently, You can get a long weekend, flights accom, car hire for around £300 for the two of you. Have a drive round and look at the number of properties for sale - many never having been lived in! Look at the number of developments on the go and the ones planned - there are literally tens of thousands of units planned in the next five or so years.
We stayed on one of the Polaris World developments - I'd guess there was at least 20% of the properties up for sale, and from what we were told the owners would take around the same price they paid at first release - about 75% of the current "off plan" list price.
Personally I wouldn't go within a million miles of an off plan at the minute - or for the next 10 years in that area of Spain.

Re: Has the housing crash started yet?
 

Thanks for your advice. I may do but the problem is that I've not sold my house & will not be able to pay the whole price now till my house is sold.

Re: Has the housing crash started yet?
 

That could work to your advantage - I would say many people are desparate to get any income at all from their "investments" we paid £40/day for a very well specced 2 bed appartment including all bills, sattellite & broadband - if you offered £20/day or maybe less for a few months rental - they'd bite your arm off - especially in the autumn or winter. (You'd very likely make more in interest on the capital from your house in the bank.) While you had a good look round at what was on offer and probably get a better deal than using the guy in the UK.

Re: Has the housing crash started yet?
 

i did have dealings with this company until i came out to spain myself and realised that you need someone on the ground here in spain..you are paying higher prices with your agent i am afaid..
carol