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how can the house market possibly get out of this lock?

how can the house market possibly get out of this lock?

Old Oct 26th 2009, 5:47 pm
  #31  
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Default Re: how can the house market possibly get out of this lock?

I read in the SUR that property purchases on the Costa Del SOl are rising??Not sure where they get the figures from.?
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Last edited by chris fisher; Oct 26th 2009 at 5:57 pm.
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Old Oct 26th 2009, 6:05 pm
  #32  
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Default Re: how can the house market possibly get out of this lock?

Originally Posted by whitelinen
Nobody is going to sell their house for 60% less than it was worth in 2007,
especially anyone who purchased in 2007, unless they are desperate.
Sure they will. If they're selling one place to buy another, then prices will have fallen for the property they're buying, too. So the net result would come out even.
So far as who would buy in the current market goes, don't forget that a lot of brits reaching retirement age will still have very generous pension provision - esp. if they've been working for a local authority or the government - and have a final-salary pension. If they take their HUGE lump sum, they can still easily afford to buy in Spain - even if the pound has lost 30% of it's value. The other group who can still afford to buy are the "empty nesters" who's kids have (finally) moved away. They've paid off all their debts, mortgages, kids' uni loans, kids first weddings etc. and have a very high disposable income.
The people who won't be buying are the "start a new life: move to the sun, get a job out there, something's bound to turn up" brigade with no capital and no prospects. Since they were always an artificial bubble in the spanish market, all that's happened is that the market has matured, which ISTM is a good thing.
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Old Oct 26th 2009, 7:43 pm
  #33  
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Default Re: how can the house market possibly get out of this lock?

I read that article in the Sur online as well, but got confused as one other article stated that the construction industry on the CDS has all but stopped.

And future applications for new builds have dropped through the floor.

I guess the surplus is being sold off.

I`m waiting as are many too see how this affects the Spanish banks, as they have a huge amount of assets seized from defaulters.

There holding back until the markets improve.

Although once its made more public there unlikely to increase much.
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Old Oct 27th 2009, 10:20 am
  #34  
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Default Re: how can the house market possibly get out of this lock?

Since less people are buying and going to Spain less money is coming in for the government, less taxes, vat, tolls, notaries fees, and is not going to get better soon.

I’m surprise the government is not coming up with some kind of incentives lets say, a one year amnesty on notaries fees for example to try to bust the market back up and everything would slowly follow?

Since at present, they are no sales so hardly nothing is coming into the pot anyway?
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Old Oct 27th 2009, 10:47 am
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Default Re: how can the house market possibly get out of this lock?

Originally Posted by oliklom
Since at present, they are no sales so hardly nothing is coming into the pot anyway?
Apart from all the usual uncertainty, many Brits are not buying simply because you never know whether what you buy will be legal or not. Whether it will be bulldozed, or whether they demand huge amounts of money to go towards infrastructure etc. We'll always get the "listillos" that say if you do your homework, do it legally etc, you can't go wrong, but of course that has not been the case in the past. Many have gone the legal route, supposedly correct paperwork etc, only to find later that the lying, cheating ayuntamientos have swindled them. I'm one of many that has the funds to buy but no way would I be investing in Spain, you never know what surprises they may have in store for you. I have a great deal of sympathy for the many that have bought in good faith, only to have their dreams ruined.
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Old Oct 27th 2009, 10:57 am
  #36  
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Default Re: how can the house market possibly get out of this lock?

Originally Posted by agoreira
Apart from all the usual uncertainty, many Brits are not buying simply because you never know whether what you buy will be legal or not. Whether it will be bulldozed, or whether they demand huge amounts of money to go towards infrastructure etc. We'll always get the "listillos" that say if you do your homework, do it legally etc, you can't go wrong, but of course that has not been the case in the past. Many have gone the legal route, supposedly correct paperwork etc, only to find later that the lying, cheating ayuntamientos have swindled them. I'm one of many that has the funds to buy but no way would I be investing in Spain, you never know what surprises they may have in store for you. I have a great deal of sympathy for the many that have bought in good faith, only to have their dreams ruined.

The exchange rate at present isnt helping either!!! Of course that then brings another reason why Spanish house prices are falling, cos if you're returning to the UK you can afford to drop your sale price as the exchange rate is in your favour - as previously mentioned, it doesnt help much anymore

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Old Oct 27th 2009, 11:42 am
  #37  
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Default Re: how can the house market possibly get out of this lock?

At risk of talking the thread round in circles, but as someone said earlier that kind of assumes the only people likely to buy in Spain are British.

Not to mention the assumption ref illegals etc that people only buy newbuilds/urbs/developments etc...
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Old Oct 27th 2009, 12:15 pm
  #38  
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Default Re: how can the house market possibly get out of this lock?

Other locations are having an increase in business.

Some friends of ours are in Turkey, they bought last year and are spending there fisrt long stay there.

Although there in a gated community for expats, they bought as the price was far less than the UK and in there words, there was a better class of Expat.

Personally I wouldn`t live in Turkey, but its there 1st second home and they seem more than content with it.

Maybe Spain just isn`t fashionable and unique anymore.
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Old Oct 27th 2009, 1:10 pm
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Default Re: how can the house market possibly get out of this lock?

Originally Posted by chulo

Maybe Spain just isn`t fashionable and unique anymore.
Even more seem to be forsaking the Spanish islands for Egypt and Turkey for holidays as well.
http://www.20minutos.es/noticia/5490...egipto/espana/
Trips to Sharm el Sheij have gone up 142%! Spain seems to be pricing itself out of both markets, property and holidays.

Last edited by agoreira; Oct 27th 2009 at 1:13 pm.
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Old Oct 27th 2009, 1:23 pm
  #40  
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Default Re: how can the house market possibly get out of this lock?

Originally Posted by jojojojojojojojojojojojo
On a positive note, a spanish chap I know was saying that the spanish are really pleased that house prices are falling cos it enables their children to bu property again????????????


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They will have to come down one hell of a lot more for youngsters to be able to afford them, based on 3 x your salary , and being that many people in industry / contruction only net around 1200 p.m.
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Old Oct 27th 2009, 1:29 pm
  #41  
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Default Re: how can the house market possibly get out of this lock?

Originally Posted by snikpoh
Whilst I agree with the sentiment, for some it just can't happen. I have a development property. It's a 550 sq. metre town house with plans to convert to 6 or 7 apartments. It is on the market for a very low figure but there just aren't ANY buyers! We have told the agents that we will consider ANY price - no one has called!!!
Confirms what Ive learnt in over 20 years in business , if people are not buying a product dropping your price is not the answer, you just have to sit tight.
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Old Oct 27th 2009, 5:11 pm
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Default Re: how can the house market possibly get out of this lock?

I`d agree with that, dropping the price just causes clients to question how you can still be earnign a profit with lower prices.

You risk alienating yourselve out of the market.
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Old Oct 27th 2009, 6:56 pm
  #43  
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Default Re: how can the house market possibly get out of this lock?

Originally Posted by Rotor
Confirms what Ive learnt in over 20 years in business , if people are not buying a product dropping your price is not the answer, you just have to sit tight.
I think you are equating apples with pears.
A- property is a speculation. In the UK, a tendency to appreciate for 6/7 years and decline for two or three, stay the same for 5 or 6. In the UK, property swings in a 15 to 17 year cycle. Much of the cost of owning property in the UK has been disguised by inflation. Remove that and it has not always been as sound a bet as people think. In Spain who knows the pattern? Spain has only really ever experienced one long boom since joining the EU. We are not going to get another such boost.
B. As property for most of us entails a significant portion of our capital, you do need to calculate opportunity cost also. With interest rates at close to zero that may not sound like much, but owning a declining asset does require a conscious appraisal of just when it might recoup those losses.
C. The Euro. Whatever you believe as to its merits it has removed several of the stabilisers in the system for national government. On any measure, Spain will be stretched on the rack of German competitiveness for very many years to come.

Sorry to sound so gloomy, but in most commentators opinion, this is only the beginning of a very long hard road.
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Old Oct 28th 2009, 10:32 am
  #44  
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Default Re: how can the house market possibly get out of this lock?

Originally Posted by Rotor
Confirms what Ive learnt in over 20 years in business , if people are not buying a product dropping your price is not the answer, you just have to sit tight.
Well, they do say (though I admit, I have no idea who "they" are) that if no-one comes to look at your house, it's the price that puts them off. However if they view, but don't buy then it's the house.
But this does presume that the agents do actually have people looking and are promoting your house
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Old Oct 28th 2009, 3:41 pm
  #45  
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Default Re: how can the house market possibly get out of this lock?

I came across a rare animal in my local café this morning, a Brit buying in Spain, now. He’d just come from the estate agent a few doors away and had his mortgage confirmed.

He’s working in Spain, earns under the Spanish average, but has a contract. The property he’s buying is a distressed sale, supposedly, valued by the bank at twice the asking price, and his mortgage is therefore over 100%.

His payments will be less than his rental on a much smaller property, and he’s going to rent out half of it.
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