Many British expats desperate to leave Spain
Aug 15th 2011, 3:49 pm
#31
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Re: Many British expats desperate to leave Spain
The really tragic thing is, that without a bit more off you still might not sell.
My heart goes out to those who have to sell no matter what. We have friends who want to sell, but they can afford to turn away reduced offers as they don't HAVE to sell.
Best of luck with selling it, and hopefully to someone with money.
My heart goes out to those who have to sell no matter what. We have friends who want to sell, but they can afford to turn away reduced offers as they don't HAVE to sell.
Best of luck with selling it, and hopefully to someone with money.
expect I will be able to tell you all about it but not likely for a year or two.
rgds
Aug 15th 2011, 3:50 pm
#32
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Re: Many British expats desperate to leave Spain
As the topic is about property, have a quick question friends of ours are looking to buy a property, on a mortgage payment of about 500e (this is approximately what they are paying in rent at mo) what sort of property price range would that put them in?.
They know what they would like but just how realistic that is is another story. Unfortunately we could not advise them as we rent and estate agents only want to show you properties not give you the advice first, no good looking at what they would like if a ball park figure for their price range is studio flat.
They know what they would like but just how realistic that is is another story. Unfortunately we could not advise them as we rent and estate agents only want to show you properties not give you the advice first, no good looking at what they would like if a ball park figure for their price range is studio flat.
Aug 15th 2011, 4:01 pm
#33
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Re: Many British expats desperate to leave Spain
As the topic is about property, have a quick question friends of ours are looking to buy a property, on a mortgage payment of about 500e (this is approximately what they are paying in rent at mo) what sort of property price range would that put them in?.
They know what they would like but just how realistic that is is another story. Unfortunately we could not advise them as we rent and estate agents only want to show you properties not give you the advice first, no good looking at what they would like if a ball park figure for their price range is studio flat.
They know what they would like but just how realistic that is is another story. Unfortunately we could not advise them as we rent and estate agents only want to show you properties not give you the advice first, no good looking at what they would like if a ball park figure for their price range is studio flat.
have no intention of getting a sp mortgage so have no idea
so what does their bank say?
(there is a feeling that expats may find it difficult to get a mortgage)
what deposit can they put down ?
do they want a local sp mortgage, euro acct mortgage, believe too many questions to get an answer here - so someone will prove me wrong
Aug 15th 2011, 4:16 pm
#34
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Re: Many British expats desperate to leave Spain
what does their bank say ?
have no intention of getting a sp mortgage so have no idea
so what does their bank say?
(there is a feeling that expats may find it difficult to get a mortgage)
what deposit can they put down ?
do they want a local sp mortgage, euro acct mortgage, believe too many questions to get an answer here - so someone will prove me wrong
have no intention of getting a sp mortgage so have no idea
so what does their bank say?
(there is a feeling that expats may find it difficult to get a mortgage)
what deposit can they put down ?
do they want a local sp mortgage, euro acct mortgage, believe too many questions to get an answer here - so someone will prove me wrong
The banks in Spain now ask for a 20% deposit plus an income:value ratio of around 4 (back down to sensible levels). The one exception is if you are buying a distressed property they (or developers) are trying to get rid of. In these cases you can still get a 100% mortgage.
Whatever the case, 500 euros per month is about a 100,000 euro mortgage. What you can buy depends on the part of the country you are in. Some (not very nice) 2 bed flats in the CDS are starting to touch those levels now, so someone may be open to an offer.
But, do remember that interest rates are very low, as they rise (which they will do eventually) then the mortgage payment will increase
It is still a good time to rent in my book, although 2012/13 may be the time to buy. Prices are dropping and sellers are getting impatient
Aug 15th 2011, 4:28 pm
#35
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Re: Many British expats desperate to leave Spain
Many on the CDS don't have to sell so they won't reduce. They will just sit out the crisis. I know one German couple, bought around 1997. They paid £27,000 for a 2 bed apartment which because of it's design is really like a bungalow with a large garden. It has been on sale for 2 years at 250,000 euro and they won't reduce. Because it's a holiday home they aren't bothered.
I don't go with the idea that inland properties are selling. A quick glance and it can be seen that it seems that the whole pueblo is for sale and have been for some time.
I don't go with the idea that inland properties are selling. A quick glance and it can be seen that it seems that the whole pueblo is for sale and have been for some time.
Aug 15th 2011, 4:32 pm
#36
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Re: Many British expats desperate to leave Spain
what does their bank say ?
have no intention of getting a sp mortgage so have no idea
so what does their bank say?
(there is a feeling that expats may find it difficult to get a mortgage)
what deposit can they put down ?
do they want a local sp mortgage, euro acct mortgage, believe too many questions to get an answer here - so someone will prove me wrong
have no intention of getting a sp mortgage so have no idea
so what does their bank say?
(there is a feeling that expats may find it difficult to get a mortgage)
what deposit can they put down ?
do they want a local sp mortgage, euro acct mortgage, believe too many questions to get an answer here - so someone will prove me wrong
I understand that there are many variables but a possible ball park figure may have been possible. I can understand them saying no good applying for a mortgage if they are likely to get say 100,000 e for 500e a month, when they are renting a place that is potentially worth 250k for the same amount and have no hassles should they want to leave, no council bills, no repair bills and at their age it could be the kids benefiting from the property in the long term. But they can see things that they would change but do not want to spend money on a place that is not their's.
Aug 15th 2011, 4:49 pm
#37
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Re: Many British expats desperate to leave Spain
To be honest I do not think they have really thought about it, not sure if they have spoken to a bank as they are not sure where to start getting the information. I understand that there are many variables but a possible ball park figure may have been possible.
I can understand them saying no good applying for a mortgage if they are likely to get say 100,000 e for 500e a month, when they are renting a place that is potentially worth 250k for the same amount and have no hassles should they want to leave, no council bills, no repair bills and at their age it could be the kids benefiting from the property in the long term. But they can see things that they would change but do not want to spend money on a place that is not their's.
I understand that there are many variables but a possible ball park figure may have been possible. I can understand them saying no good applying for a mortgage if they are likely to get say 100,000 e for 500e a month, when they are renting a place that is potentially worth 250k for the same amount and have no hassles should they want to leave, no council bills, no repair bills and at their age it could be the kids benefiting from the property in the long term. But they can see things that they would change but do not want to spend money on a place that is not their's.
For 500e / month, you should be able to borrow about 200K. BUT, it all depends on so many other factors - monthly eurobor mortgage, annual, interest only, repayment etc. etc. And then, as stated before, that's if you can get a mortgage.
IFF you can get a 200K mortgage and if you have to put down at least 20% deposit, then this equates to a property of about 250k euros
Aug 15th 2011, 4:55 pm
#38
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Re: Many British expats desperate to leave Spain
For 500e / month, you should be able to borrow about 200K. BUT, it all depends on so many other factors - monthly eurobor mortgage, annual, interest only, repayment etc. etc. And then, as stated before, that's if you can get a mortgage.
IFF you can get a 200K mortgage and if you have to put down at least 20% deposit, then this equates to a property of about 250k euros
ING are one of the most competitive morgage providers in Spain at the moment, and 500 euros/months comes out at 100k
http://www.ingdirect.es/hipotecas/
Even an interest only mortgage (which noone should be considering in the current climate) wont get you to 200k.
Do you have any sources to back up what you say?
Aug 15th 2011, 4:58 pm
#39
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Re: Many British expats desperate to leave Spain
Just to try and help, although I suspect your friends could work this out for themselves.
For 500e / month, you should be able to borrow about 200K. BUT, it all depends on so many other factors - monthly eurobor mortgage, annual, interest only, repayment etc. etc. And then, as stated before, that's if you can get a mortgage.
IFF you can get a 200K mortgage and if you have to put down at least 20% deposit, then this equates to a property of about 250k euros
For 500e / month, you should be able to borrow about 200K. BUT, it all depends on so many other factors - monthly eurobor mortgage, annual, interest only, repayment etc. etc. And then, as stated before, that's if you can get a mortgage.
IFF you can get a 200K mortgage and if you have to put down at least 20% deposit, then this equates to a property of about 250k euros
I am sure they have a lot of soul searching to be done first.
Aug 15th 2011, 5:47 pm
#40
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Re: Many British expats desperate to leave Spain
Many British expats are desperate to leave Spain. With Spain's crumbling economy, 20% unemployment rate and 40% youth unemployment and the collapsing property market with house prices falling by the day with no end in sight and Spain entering a lost decade and with the weak pound against the Euro and rising inflation many expats are struggling to survive and are deciding to call it quits and are desperate to sell up and move back to Britain.
The big drawback is that the British expats are struggling to find buyers for their homes because there are so many vacant properties in Spain (over 1.5 million vacant properties) and the number of buyers is drying up and house prices have crashed in Spain which means that people desperate to sell will be forced to sell their properties for 100,000 euros below the price they paid for their properties during the height of the boom.
The British expats are now in a situation where nobody wants to buy their property and are stranded in Spain with little money and no job prospects because of the bad economy and cannot return to Britain because of high property prices in Britain.
The big drawback is that the British expats are struggling to find buyers for their homes because there are so many vacant properties in Spain (over 1.5 million vacant properties) and the number of buyers is drying up and house prices have crashed in Spain which means that people desperate to sell will be forced to sell their properties for 100,000 euros below the price they paid for their properties during the height of the boom.
The British expats are now in a situation where nobody wants to buy their property and are stranded in Spain with little money and no job prospects because of the bad economy and cannot return to Britain because of high property prices in Britain.
Desolation that is an interesting user name
Aug 15th 2011, 6:00 pm
#41
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Re: Many British expats desperate to leave Spain
Areas I am familiar with, inland Andalusia white mainly Spanish established working villages where the prices of the homes have always been reasonable, for example a two bed with roof terrace mountain views, €50k half to one hour from the sea have been selling mainly to the Spanish.....
Aug 15th 2011, 6:52 pm
#43
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Re: Many British expats desperate to leave Spain
To be honest I do not think they have really thought about it, not sure if they have spoken to a bank as they are not sure where to start getting the information. I understand that there are many variables but a possible ball park figure may have been possible.
I can understand them saying no good applying for a mortgage if they are likely to get say 100,000 e for 500e a month, when they are renting a place that is potentially worth 250k for the same amount and have no hassles should they want to leave, no council bills, no repair bills and at their age it could be the kids benefiting from the property in the long term. But they can see things that they would change but do not want to spend money on a place that is not their's.
I understand that there are many variables but a possible ball park figure may have been possible. I can understand them saying no good applying for a mortgage if they are likely to get say 100,000 e for 500e a month, when they are renting a place that is potentially worth 250k for the same amount and have no hassles should they want to leave, no council bills, no repair bills and at their age it could be the kids benefiting from the property in the long term. But they can see things that they would change but do not want to spend money on a place that is not their's.
if they discuss with a bank manager\lending mgr they will soon brought up to speed. they must have some idea as to what they want, where they want it, have looked at whats on the market?
perhaps they just want to buy what they are living in and want to know if they can afford it.
sorry, but at the moment there are more questions than answers to give any sort of answer.
rgds
Aug 15th 2011, 7:50 pm
#44
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Re: Many British expats desperate to leave Spain
Exactly
The banks in Spain now ask for a 20% deposit plus an income:value ratio of around 4 (back down to sensible levels). The one exception is if you are buying a distressed property they (or developers) are trying to get rid of. In these cases you can still get a 100% mortgage.
Whatever the case, 500 euros per month is about a 100,000 euro mortgage. What you can buy depends on the part of the country you are in. Some (not very nice) 2 bed flats in the CDS are starting to touch those levels now, so someone may be open to an offer.
But, do remember that interest rates are very low, as they rise (which they will do eventually) then the mortgage payment will increase
It is still a good time to rent in my book, although 2012/13 may be the time to buy. Prices are dropping and sellers are getting impatient
The banks in Spain now ask for a 20% deposit plus an income:value ratio of around 4 (back down to sensible levels). The one exception is if you are buying a distressed property they (or developers) are trying to get rid of. In these cases you can still get a 100% mortgage.
Whatever the case, 500 euros per month is about a 100,000 euro mortgage. What you can buy depends on the part of the country you are in. Some (not very nice) 2 bed flats in the CDS are starting to touch those levels now, so someone may be open to an offer.
But, do remember that interest rates are very low, as they rise (which they will do eventually) then the mortgage payment will increase
It is still a good time to rent in my book, although 2012/13 may be the time to buy. Prices are dropping and sellers are getting impatient
However, looking at Spanish land registry figures for the past few years, prices are set to fall further, and on such a deal you could well be in negative equity in as little as a year's time.
It would make more sense to rent at this stage, until the picture becomes a lot clearer. From memory, the land registry figures show a drop of 17% in the first quarter of this year and those figures are for the whole of Spain, the expat areas having fallen further.
I'm not cheering those depressing property figures, they affect me directly (negatively) as does the value of the pound Sterling. When things reverse, I'll be the first one to shout it from the rooftops to encourage more UK expats to move over into the sunshine.
(And what have you been up to, Cman)?
Aug 15th 2011, 8:32 pm
#45
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Re: Many British expats desperate to leave Spain
Jay, no disrespect intended but suggest your people get out there and start doing some work on this.
if they discuss with a bank manager\lending mgr they will soon brought up to speed. they must have some idea as to what they want, where they want it, have looked at whats on the market?
perhaps they just want to buy what they are living in and want to know if they can afford it.
sorry, but at the moment there are more questions than answers to give any sort of answer.
rgds
if they discuss with a bank manager\lending mgr they will soon brought up to speed. they must have some idea as to what they want, where they want it, have looked at whats on the market?
perhaps they just want to buy what they are living in and want to know if they can afford it.
sorry, but at the moment there are more questions than answers to give any sort of answer.
rgds
It is not my place to tell them not to bother they will have to find that out for themselves. Many thanks.
