Pain in Spain's housing market goes on
Dec 29th 2010, 8:52 am
#16
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Re: Pain in Spain's housing market goes on
I actually think it has a LOT more to do with the British housing and mortgage market. People dont have any equity in their homes anymore that will allow them to buy a house in Spain. How do you think all the British funded their Spanish homes in the first place? It wasnt through having high powered jobs with great salaries.
And new mortgages are hard to come by, require a large deposit and have relatively high interest rates compared to the BoE rate. Couple that with the feeling of pesimism that is worldwide and someone would have to be very brave or foolish to buy in Spain at the minute. Prices still have to come down 30-50% until I'll buy (which I think they will in the next 2 years). In the meantime rents are cheap and seem to be getting cheaper every month
And new mortgages are hard to come by, require a large deposit and have relatively high interest rates compared to the BoE rate. Couple that with the feeling of pesimism that is worldwide and someone would have to be very brave or foolish to buy in Spain at the minute. Prices still have to come down 30-50% until I'll buy (which I think they will in the next 2 years). In the meantime rents are cheap and seem to be getting cheaper every month
Dec 29th 2010, 8:55 am
#17
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Re: Pain in Spain's housing market goes on
No, I know that, but I think people who have the money will spend it elsewhere, or not at all.
We bought our house, for cash, for 51k euros in 2003 and then the one next door for 17k euros in 2004. We do not have any sort of mortgage. I would be loathe, however, knowing what I do now, to invest my money here now. (although AFAIK both houses are perfectly legal). I'd buy a holiday home in the UK instead, albeit a chalet or studio!
We bought our house, for cash, for 51k euros in 2003 and then the one next door for 17k euros in 2004. We do not have any sort of mortgage. I would be loathe, however, knowing what I do now, to invest my money here now. (although AFAIK both houses are perfectly legal). I'd buy a holiday home in the UK instead, albeit a chalet or studio!
Dec 29th 2010, 9:05 am
#18
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Re: Pain in Spain's housing market goes on
Well, if house prices hold up in the UK, which they are doing in the south of England, then Spanish properties may look very appealing again. That 3 bedroom flat for £81k (ok there are added charges I know) looks very appealing to someone in London who'd have to pay 300,000 for such a spacious flat.
You'd be looking at over 500k for one like that in a nice part of London. But that doesnt really matter. London is London, Alora is Alora. We have family who just bought a 3 bed flat in much worse condition in Barcelona for 600k.Most people need to live in the cities to work, and the more people earn, the more it is necessary for them to live in the cities (in general)
Scampicat, 51k euros and 17k euros
Now they ARE prices people can buy with their savings, but unfortunately they are not typical for Spain, or the UK. I would like to buy a house in Asturias, but everything is still over 300k for anything that is good quality and within communiting distance to the 3 Asturian cities.
Dec 29th 2010, 9:10 am
#19
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Re: Pain in Spain's housing market goes on
Well, if house prices hold up in the UK, which they are doing in the south of England, then Spanish properties may look very appealing again. That 3 bedroom flat for £81k (ok there are added charges I know) looks very appealing to someone in London who'd have to pay 300,000 for such a spacious flat.
Dec 29th 2010, 9:14 am
#20
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Re: Pain in Spain's housing market goes on
Well absolutely. I have a 1 bed flat in London that is "worth" well in excess of 300k You'd be looking at over 500k for one like that in a nice part of London. But that doesnt really matter. London is London, Alora is Alora. We have family who just bought a 3 bed flat in much worse condition in Barcelona for 600k.
Most people need to live in the cities to work, and the more people earn, the more it is necessary for them to live in the cities (in general)
Scampicat, 51k euros and 17k euros Now they ARE prices people can buy with their savings, but unfortunately they are not typical for Spain, or the UK. I would like to buy a house in Asturias, but everything is still over 300k for anything that is good quality and within communiting distance to the 3 Asturian cities.
You'd be looking at over 500k for one like that in a nice part of London. But that doesnt really matter. London is London, Alora is Alora. We have family who just bought a 3 bed flat in much worse condition in Barcelona for 600k.Most people need to live in the cities to work, and the more people earn, the more it is necessary for them to live in the cities (in general)
Scampicat, 51k euros and 17k euros
Now they ARE prices people can buy with their savings, but unfortunately they are not typical for Spain, or the UK. I would like to buy a house in Asturias, but everything is still over 300k for anything that is good quality and within communiting distance to the 3 Asturian cities.Have to do the marketing right!
Dec 29th 2010, 9:15 am
#21
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Re: Pain in Spain's housing market goes on
Prices in the South of Spain are generally at 2004-5 levels
Dec 29th 2010, 9:51 am
#22
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Re: Pain in Spain's housing market goes on
I didn't say it was 150k. I said 'less than half of £300k'. This is for both houses.
We would hope to at least make our money back plus the money we have spent on reforming them, the 17k one was completely derelict. If we can do this we will be satisfied.
Ideally we would like enough to buy an apartment in a complex that we know in the UK, these vary between £80k-£100k, but we know at the moment that this is a long shot, so if we don't get that we'll get a small mortgage for the rest.
We would hope to at least make our money back plus the money we have spent on reforming them, the 17k one was completely derelict. If we can do this we will be satisfied.
Ideally we would like enough to buy an apartment in a complex that we know in the UK, these vary between £80k-£100k, but we know at the moment that this is a long shot, so if we don't get that we'll get a small mortgage for the rest.
Dec 29th 2010, 10:03 am
#23
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Re: Pain in Spain's housing market goes on
I didn't say it was 150k. I said 'less than half of £300k'. This is for both houses.
We would hope to at least make our money back plus the money we have spent on reforming them, the 17k one was completely derelict. If we can do this we will be satisfied.
Ideally we would like enough to buy an apartment in a complex that we know in the UK, these vary between £80k-£100k, but we know at the moment that this is a long shot, so if we don't get that we'll get a small mortgage for the rest.
We would hope to at least make our money back plus the money we have spent on reforming them, the 17k one was completely derelict. If we can do this we will be satisfied.
Ideally we would like enough to buy an apartment in a complex that we know in the UK, these vary between £80k-£100k, but we know at the moment that this is a long shot, so if we don't get that we'll get a small mortgage for the rest.
Dec 29th 2010, 10:11 am
#24
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Re: Pain in Spain's housing market goes on
I agree with most of CM's posts....am I ill
I don't think prices will fall much more though. Some of the reductions of 50% these banks etc.are quoting were Developers stupid prices and were probably never worth that anyway. Many on the Costas who have second homes will just wait as they don't need to sell. I know someone selling an apartment in Calahonda priced less than others in the block and they haven't had a viewing in 18 months.
The best bargains will be from those selling who bought before about 2001 as they can afford to reduce substantially.
I don't think prices will fall much more though. Some of the reductions of 50% these banks etc.are quoting were Developers stupid prices and were probably never worth that anyway. Many on the Costas who have second homes will just wait as they don't need to sell. I know someone selling an apartment in Calahonda priced less than others in the block and they haven't had a viewing in 18 months.
The best bargains will be from those selling who bought before about 2001 as they can afford to reduce substantially.
Dec 29th 2010, 10:25 am
#25
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Re: Pain in Spain's housing market goes on
Dec 29th 2010, 10:30 am
#26
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Re: Pain in Spain's housing market goes on
It's in Alora
Its sweltering in the summer, cold in the winter and not much going on at all. A flat in that kind of location should be dirt cheap. This one looks like a nice flat, so I think its up for a realistic price, although if you were going to live in Alora most people would want a house with land rather than a flat. Living in a flat in the campo is a bit weird.
There are some lovely reservoirs close by though to go swimming in the summer
Its sweltering in the summer, cold in the winter and not much going on at all. A flat in that kind of location should be dirt cheap. This one looks like a nice flat, so I think its up for a realistic price, although if you were going to live in Alora most people would want a house with land rather than a flat. Living in a flat in the campo is a bit weird.
There are some lovely reservoirs close by though to go swimming in the summer
Dec 29th 2010, 4:23 pm
#27
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Re: Pain in Spain's housing market goes on
Three years ago, along with a couple of partners we were looking to invest in a small hotel that was going to be the basis for health and wellness vacations. We went to see a hotel in Monda, the location was good, about 20 mins up the coast from Marbella. It was priced at 2.2 Million Euros at the time. We passed on it. Three years later, the same hotel is still on sale. Price? 2 Million Euros. What are these people thinking??!!
And Barcelona is still very expensive. There is nothing decent under 500K Euros.
And Barcelona is still very expensive. There is nothing decent under 500K Euros.
Dec 29th 2010, 5:12 pm
#28
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Re: Pain in Spain's housing market goes on
Three years ago, along with a couple of partners we were looking to invest in a small hotel that was going to be the basis for health and wellness vacations. We went to see a hotel in Monda, the location was good, about 20 mins up the coast from Marbella. It was priced at 2.2 Million Euros at the time. We passed on it. Three years later, the same hotel is still on sale. Price? 2 Million Euros. What are these people thinking??!!
And Barcelona is still very expensive. There is nothing decent under 500K Euros.
And Barcelona is still very expensive. There is nothing decent under 500K Euros.
Dec 29th 2010, 5:50 pm
#29
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Re: Pain in Spain's housing market goes on
No, I know that, but I think people who have the money will spend it elsewhere, or not at all.
We bought our house, for cash, for 51k euros in 2003 and then the one next door for 17k euros in 2004. We do not have any sort of mortgage. I would be loathe, however, knowing what I do now, to invest my money here now. (although AFAIK both houses are perfectly legal). I'd buy a holiday home in the UK instead, albeit a chalet or studio!
We bought our house, for cash, for 51k euros in 2003 and then the one next door for 17k euros in 2004. We do not have any sort of mortgage. I would be loathe, however, knowing what I do now, to invest my money here now. (although AFAIK both houses are perfectly legal). I'd buy a holiday home in the UK instead, albeit a chalet or studio!
I think people would buy them if they were able to borrow the money,the banks are not lending and people are not buying houses for investment purposes anymore to make quick money buying off plan...the prices are being kept high only because the banks are holding on to the repossessions because they know if they were released on-mass the prices would collapse that would hit them hard.
There is too much supply and not enough demand, I don't think we have reached anywhere near the bottom.
Dec 29th 2010, 11:56 pm
#30
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Re: Pain in Spain's housing market goes on
Well here's one that belongs to some friends of ours.
http://www.beautifulyoo.com/
It started off at 163,000 ... after being for sale for four years and them having to go back to the UK it's now for sale at 95,000.
It's a very nice apartment in Alora and it's very surprising it's not sold before now.
http://www.beautifulyoo.com/
It started off at 163,000 ... after being for sale for four years and them having to go back to the UK it's now for sale at 95,000.
It's a very nice apartment in Alora and it's very surprising it's not sold before now.