andreavarga

We are a young couple that have dreamed of owning our own home for years. Unfortunately we missed the boat in boom times. Ironically now in these tougher times we are actually making more money and we have a more stable life in Madrid. As 2 self-employed first time buyers we have ZERO chance of a mortgage in the credit crunch.

We are looking for a Brit that is desperately seeking to sell their small house/flat in Madrid but can't find a buyer. We would like to arrange a private mortgage. http://www.wisegeek.com/what-are-private-mortgages.htm
All safety concerns could be hammered out in a contract arranged by solicitors.

ANY OFFERS?

SaritaBarcelona

I really feel for you, it is so hard. Are you absolutely sure no-one will lend?

cricketman

If you're self-employed and have 2-3 years of books/tax returns then you should still be able to get a mortgage on something like 3-4 times joint income

You will have to be earning good money to afford anything worth while in Madrid though! Small 1-2 bed flats will start at around 200k (unless in bad area or in a dormitary town). And looking to only buy from British expats will be like looking for a needle in a haystack.

I feel prices still have a long way to fall. THe Economist this month said house prices in Spain were still 45% over valued vs 30% in the UK and only 5% in the US. I tend to agree and I am holding tight to buy maybe in a few years time.

missile

I can easily understand the advantages of a private mortgage for the buyer. For the seller's it seems like all the risk of renting but none of the benefit

HBG

I hate giving this kind of advice, but most Spanish banks do deals on their repossessions that involve practically no input from the buyers – no deposits, no repayments for three years etc etc.

The trouble is, you’re buying into guaranteed negative equity. But if you’re footloose and fancy free, why not?

poolboy

Sadly I agree Spain (or the Costas) are still overvalued. A fair 2 bed flat (modern, good for small family) is still c 150ke. In the recent auctions in UK there's been 1 bed flats in ok areas for just below 100k GBP, or say 115ke.

These London ones were 50% - 100% more 3 years ago & reflect the desperation of banks for cash. Spanish banks are living a lie, they say they can wait for an upturn but I think times running out.

I wouldn't buy in Spain unless it was a giveaway price & you are v unlikely to find one, the bank managers brother/son/dog will get first dibs.

missile

Costa Blanca: Brand new, two bed flats in Formentera @ 50,000 €

andreavarga

http://www.idealista.com/pagina/agre...6&xtor=AL-40-1[mashup]-3[trovit]-[intext]-[]-[]

I have found properties in Madrid for 80.000 euros and less. With our budget we arnot looking for anything more than a box. we have £10k that we have saved and a few extra for ancillary costs, though in this current stuation I would intent to bargain hard. aiming for at least a third off.

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missile: "I can easily understand the advantages of a private mortgage for the buyer. For the seller's it seems like all the risk of renting but none of the benefit"

well the idea would be to pay more tat what it could be rented at.

steviedeluxe

If you can get a place in Madrid for a good price, it may be a half-decent investment in the long run. At least you can rent out to workers (or even English teachers) if you need to move elsewhere. The IMF predicted the other day that growth in Spain will outstrip Germany's by 2013, so maybe the economy will turn a corner. Even this year tourist numbers have increased in Spain. However what is the "long run"? It may be 10 years, or it may be 50 before we see strong growth in prices again, and before that we're likely to see many areas decline further. Buy a place if you're happier doing that instead of renting; but be prepared to lose money in the process.

SaritaBarcelona

Do you live in Madrid already? I don't want to be negative but the barrio you posted the link to is perhaps not the best investment, look at this link: http://es.wikipedia.org/wiki/San_Cri...s_%C3%81ngeles

especially the part "realidad social". Don't want to get involved in other people's business but if you didn't know this, it might save you a problem in the future

SaritaBarcelona

Plus this one: http://www.belt.es/noticias/2004/oct...ncristobal.htm

steviedeluxe

Obviously every barrio will need investigating if you're buying. I don't claim to know about the barrio mentioned, but I suspect there are always bargains to be had in places like Alcobendas or even Mostoles, if you're prepared to coommute. At least travel cards are good value in Madrid - probably around 50 Euros for a monthly B1 card that includes towns like Alcobendas. I pay nearly £40 for a week's travel in London.
Not always the case that "dodgy" areas are cheap. Lavapies house prices have soared in recent years (as it's so close to the centre) but I'd never carry a large amount of money on my person there.

SaritaBarcelona

[QUOTE=poolboy;8963700]Sadly I agree Spain (or the Costas) are still overvalued. A fair 2 bed flat (modern, good for small family) is still c 150ke. In the recent auctions in UK there's been 1 bed flats in ok areas for just below 100k GBP, or say 115ke.
/QUOTE]

I agree they are overvalued on the coast, but in tourist areas there is always a certain "added value" as they are easier to rent out short or longterm if necessary (albeit not at the prices people were charging previously). On the Costa del Sol it is possible to pay 150k for a 2 bed flat in a nice area, with parking space, trastero, communal pool; the parking and the storeroom adds considerable value (would be difficult to sell separately right now but that's another story).

cricketman

[QUOTE=andreavarga;8964048]http://www.idealista.com/pagina/agre...6&xtor=AL-40-1[mashup]-3[trovit]-[intext]-[]-[]

I have found properties in Madrid for 80.000 euros and less. With our budget we arnot looking for anything more than a box. we have £10k that we have saved and a few extra for ancillary costs, though in this current stuation I would intent to bargain hard. aiming for at least a third off.

Rather you than me!

I wouldnt wish my worst enemy to live in an area like that. I advise to NOT jump in unless you know what you are getting into. There are some horrible neighbourhoods in Madrid with all kinds of social problems like other posters have alluded to.

steviedeluxe

[QUOTE=SaritaBarcelona;8964359] I would say the best places to rent out flats are Madrid and Barcelona - there always seems to be a big demand for rentals in the central areas there. I know in Madrid it was always a hassle for English teachers to find decent inexpensive accommodation to rent especially in the Autumn. Problem with renting out places on the coast (I would have thought) is sorting out paperwork, keys etc every week or two. Plus the off peak season lasts for 6 months?