pjj

having watched a programme last night on itv with trevor mcdonald about the growing concerns of the uk property market quite a few of the critics on there stated that the market will level out this year then over next 3/4 years they predict a massive 35/40% drop! im just wondering guys what your fews/predictions are on the property market in spain

jdr

As every market price, if you only have to sell one place then it doesn`t really matter what the prices are because you will only pay the same price for your next house.
Its only people that have speculated and bought two or three or more for a quick killing that will suffer, oh dear what a shame.

pjj

yes what a shame greedy buggers

lee8

Negative equity is never pleasant, particularly when you need help.

As for Spain, there is a down turn of the good times across the pond, and that will be felt in the EU zone as well as Spain.

The biggy in Spain is the fact many have bought in areas that rely on tourism to boast the economy, if the tourist stop, the income for that area will reduce and house prices will fall further than in a city relying on stability from the general population.

Then that sunny sea property will be left in an area that will miss out on investment and subsidies for local ammenities and services,it will then be reduced to a run down area,it happened in the UK,there are many seaside spots in the UK with large Victorian properties now worth a fraction of there price.Suddenly your 250,000 villa will then be worth 25,000 euros, and the Banks don`t like that.

lee8

Not really.

If interest rates increase, people will find they are outside of their financial ability to repay the loan, selling is not an option and borrowing isn`t either.

And before the situation gets worse the Bank will pull the loan, so as not to lose further, leaving you homless.

If people have been struggling to pay debit or suddenly they lose their income or what ever.

If the loan value exceeds the security, the Banks will still require paying.

If your only say 25 yrs old and you`ve bought your house, and you want to upgrade because of increase in family, how do you do ?

jdr

No you are wrong there, the bank already own the house anyway and would rather have something coming in on the loan than just the house they can`t sell either.

lee8

I may well be, but I wouldn`t want to test it, from what i`m hearing there goin to be tough on defaults.

There isn`t any benefit to the Bank having a house worth far less than the debt and even worse in a market slump when an auction isn`t goin to cover the cost of security in a poor climate.There`s even less in continuing the inevitable.

As soon as they smell trouble, they`ll react, the alternatives of holding onto a building debt in a slumped market is the risk the Americans recently tried and failed.

Northern Rock are know feeling the results of predicting a market that hasn`t gone the way they hoped.

Others arn`t goin to help defaulters and since the goverment cleaned up the market and closed many lenders who were willing to bet on poor credit rated clients for higher returns, there is a feeling of uncertainty.The sub prime market now is over, first sign of worried investers and Bankers.

twyntub

It wasn't the sub-prime loans themselves that led to the house-of-cards type collapse.

Lending money to people that can't afford to pay is one thing. It was what the banks were doing to get rid of those sub-prime loans off their balance sheets so that they could then dole out more sub-prime loans...

lee8

Northern Rock relied on US banks to finance their business.

The US noticed the slump coming, they got in, got off, and got out, something went wrong at Northern Rock, somebody had to much confidence which was not at the same level as there IQ.They didn`t predicte the movements in the US market and change their way of doin business.

The US is a huge Sub Prime business, which is goin to bit back hard, very hard .

Mitzyboy

So ...... £250k victorian houses in the UK are now worth about £25k?

Frankly, I have heard scaremongering of these proportions so many times before over the last 20 years, and although there have been crashes and downturns, there have been as many booms as well.

miguel martinez

the property market in Spain is now stagnant, but only now , until march because elections....

Mitzyboy

You think so?
I thought it was because of overbuilding and overpricing

miguel martinez

I think that what happens was that everybody wants to earns money with their properties, and buy 2.3 or more flats and now they want to sell at time

Calls

Sorry but I have just inherited my later fathers house in spain and I have been told it will take 2 - 3 years to get all the paperwork sorted out and it registered in my name, it could mean I have to pay inheritance tax on a higher value than what it could be when it is eventually transfered.

pjj

i think there is a lot of scare mongering in the uk people are always putting downers on everything to do with the property market always doom and gloom like mitzyboy said they forget about the good times they had ! most the people i come a cross in my job are up to neck in credit i had one guy a builder who wanted finance on a vehicle the other day we done a credit check on him he was 3months behind on his morgage plus his credits cards where at there limits all 4 of them i dont understand why people put so much financial strain on themselves it just madness ! when we moved to spain we are going too see how the first year goes there and if we are happy there , im going too pay my morgage off so if theres any major interest rises or dips in property prices hopefully it should not affects us too much long as we can pay our bills and the suns shineing happy days