Cape Blue

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.

graham barnett

Thats right Greed is everywhere!

wilki

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.

crispy

In my experience Spanish property owners pick a price any price and stick with it until they get what they want.

wilki

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.

jdr

No, they con people into paying deposits and use that to build, that is why it takes so long to build and there are so many unfinished urbanizations about now and it will stay like that for a long time.

graham barnett

Like most spanish, until the last brick falls and hits them on the toe they will not act. Since Franco the Spanish have only known upwards and onwards, they have had a few ups and downs but nothing on this scale, so at this present time they are wearing blinkers. As for the Northern Europeans that bought property out there quite a while ago, and saw there properties inflate in price dramatically over the last decade, and were led by the prevailing onslaught of estate agents cashing in on the good times, leading to very over priced properties. A lot of these people are now stuck in catch 22 unable to sell with mounting bills and the credit crunch about to hit Spain this year especially in the tourism area. Just my view

Ray51

Or , maybe : NOT !? ( get what they imagine , they might want , in most astronomical terms , hehehe )
For year , after year , from the last one ...and the real recession/depression is only just starting...

wilki

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.

graham barnett

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?

shirley and anthony hide

The pound is down against most currencies ,not just euro.Everyones hiring a caravan in Bognor this year,so British summer guaranteed to be shite.Next year Spain will be full of Union Jack trunks and Union Jack drunks again.

graham barnett

The Dollar is not as good as 12 months ago but a better bet then Euro

bigglesworth

Love the phraseology!

steviedeluxe

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.

jdr

I don`t know many Spanish that buy off plan, I think they leave that to the loco foreigners. ;-))
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.