House prices in Spain
#16
Re: House prices in Spain
Of course CGT on the sale but I was pointing out the wealth tax each year thereon on the money then sitting in the bank. There is a potential CGT whenever they sell, but once sold there is a regular wealth tax, whereas unsold the wealth tax was minimal due to the low property valuation.
I know - we were talking about the historical drivers for local Spanish not to realise assets.
I know - we were talking about the historical drivers for local Spanish not to realise assets.
#18
Forum Regular
Joined: Dec 2008
Location: UK
Posts: 145
Re: House prices in Spain
I know this has been talked about, but with the uk house prices in freefall , spain prices must also be coming down, on new build. they like the UK where over priced, but with spains construction industry in a bigger mess than the UKs has anyone seen a big drop in prices. I have looked at estate agents in spain and cant see any reduction in prices, a 130 grand house last summer still advertised at 130 now. I know the older houses that are family owned can wait it out, but the new build dont seem to be coming down in price. Can anyone shed some light on this.
#19
Joined: Dec 2006
Posts: 5,359
Re: House prices in Spain
I know this has been talked about, but with the uk house prices in freefall , spain prices must also be coming down, on new build. they like the UK where over priced, but with spains construction industry in a bigger mess than the UKs has anyone seen a big drop in prices. I have looked at estate agents in spain and cant see any reduction in prices, a 130 grand house last summer still advertised at 130 now. I know the older houses that are family owned can wait it out, but the new build dont seem to be coming down in price. Can anyone shed some light on this.
#20
Forum Regular
Joined: Dec 2008
Location: UK
Posts: 145
Re: House prices in Spain
ya but new build property say a block of 20 flats or even a block of 50, will have been built on borrowed money, which has to be payed back asap, builders have to be payed, banks payed. If spain construction industry was bigger than the UKs, what makes there housing market tick over, 1st buyers. Is it so different than the UK and if so in what way, Im not refering to the holiday hot spots, I m talking about the non tourist places which have also had alot of new housing/flats being built.
Last edited by wilki; Jan 27th 2009 at 5:33 pm.
#21
Re: House prices in Spain
ya but new build property say a block of 20 flats or even a block of 50, will have been built on borrowed money, which has to be payed back asap, builders have to be payed, banks payed. If spain construction industry was bigger than the UKs, what makes there housing market tick over, 1st buyers. Is it so different than the UK and if so in what way, Im not refering to the holiday hot spots, I m talking about the non tourist places which have also had alot of new housing/flats being built.
#22
Forum Regular
Joined: Jan 2009
Posts: 33
Re: House prices in Spain
I know this has been talked about, but with the uk house prices in freefall , spain prices must also be coming down, on new build. they like the UK where over priced, but with spains construction industry in a bigger mess than the UKs has anyone seen a big drop in prices. I have looked at estate agents in spain and cant see any reduction in prices, a 130 grand house last summer still advertised at 130 now. I know the older houses that are family owned can wait it out, but the new build dont seem to be coming down in price. Can anyone shed some light on this.
#23
BE Enthusiast
Joined: Mar 2006
Location: Brussels
Posts: 887
Re: House prices in Spain
For year , after year , from the last one ...and the real recession/depression is only just starting...
#24
Forum Regular
Joined: Dec 2008
Location: UK
Posts: 145
Re: House prices in Spain
This was in the times thismorning, can the same be said in spain, if not why not.
The average price of a house is 16.6 per cent lower than this time last year after a further 1.3 per cent fall in January, according to figures published today by Britain's biggest building society.
The average price of a house is 16.6 per cent lower than this time last year after a further 1.3 per cent fall in January, according to figures published today by Britain's biggest building society.
#25
Forum Regular
Joined: Jan 2009
Posts: 33
Re: House prices in Spain
This was in the times thismorning, can the same be said in spain, if not why not.
The average price of a house is 16.6 per cent lower than this time last year after a further 1.3 per cent fall in January, according to figures published today by Britain's biggest building society.
The average price of a house is 16.6 per cent lower than this time last year after a further 1.3 per cent fall in January, according to figures published today by Britain's biggest building society.
#26
Re: House prices in Spain
It is what i said in my post, they are all wearing blinkers out there and think that the credit crunch is some form of English tradition, and that they are immune to it all, well they better wake up fast because by the end of this year there crunch will definitely hit home, or should i say homes, also only my view but i think the Spanish tourist industry will be wacked this year due to the Pound Euro levels. people are looking to go where they will get more for the pound?
#27
Forum Regular
Joined: Jan 2009
Posts: 33
Re: House prices in Spain
The Dollar is not as good as 12 months ago but a better bet then Euro
#29
Re: House prices in Spain
A far larger proportion of the population buy off-plan - so the builder is (or used to be covered). Also the Spanish are far more likely (or used to be) to pay cash for the family home or extension or mountain/beach escape villa. It's seen as something to keep in the family, not an investment to sell on after 6 years. Lastly, in many places people tend to stay in their family home when unemployed and wait for the next upturn. Valencians stay in Valencia, Malaguens stay in Malaga - well it's not 100% and is changing, but the society isn't quite as mobile as the Brits.
#30
Re: House prices in Spain
A far larger proportion of the population buy off-plan - so the builder is (or used to be covered). Also the Spanish are far more likely (or used to be) to pay cash for the family home or extension or mountain/beach escape villa. It's seen as something to keep in the family, not an investment to sell on after 6 years. Lastly, in many places people tend to stay in their family home when unemployed and wait for the next upturn. Valencians stay in Valencia, Malaguens stay in Malaga - well it's not 100% and is changing, but the society isn't quite as mobile as the Brits.
Off plan is what I meant and why it takes so long to finish an urbanization.
If they only sell ten places then they use the deposit money to start works on thirty say, then hope others will sell later, if they don`t then work will slow down till the kitty is replenished by more stage payments.
Last edited by jdr; Jan 30th 2009 at 7:33 pm.