Property - More Problems?
 

The property market has been almost non-existent this last year and now the first bank has declared, it looks like something will have to give very soon.
Banco Espanol de Credito, a retail-banking unit of Banco Santander SA said it has 10.4 billion euros ($13.7 billion) of risk linked to Spain’s real estate and construction industry. Spanish banks have “troubled exposure” to construction and real estate of 181 billion euros, according to the Bank of Spain. Madrid-based Pisos Embagados de Bancos has claimed that there are currently 100,000 foreclosed homes on the market and by the end of the year this figure will rise to 300,000.This is an alarming situation and the banks dumping another 300,000 properties with unrealistic values on the market will only support the already massively inflated property values - or will it push the prices down by sheer numbers?
In 2010 the new-build housing sector was just as bleak with new starts in Costa Blanca at the same level as they were in 1952, a tiny % of the starts 6years ago. Municipalities with less than 10 new homes started in 2010 include Benitatxell, Bigastro, El Campello, Castalla, Catral, Crevillente, Guardamar, La Nucia, Los Montesinos, Monforte, Monóvar, Pego, Polop, San Fulgencio, and San Miguel de Salinas, all familiar names in the holiday-home industry.

Re: Property - More Problems?
 

Looks like a bit of cut and paste to me
Are you the master of doom and gloom btw?

Re: Property - More Problems?
 

Once the UK banks start lending again it will pick up, there are still loads with dreams of living in the sun.

Re: Property - More Problems?
 

I don't see too much UK money being pumped into Spanish property in the near future.
In addition to all the present doom and gloom and risks involved, it's looking more likely than ever that UK interest rates will be taking quite a hike fairly soon.

Re: Property - More Problems?
 

A good point Dick D.

Apart from the interest rates, there is also the problems with the reduced pensions that a lot of workers were promised.

Now that the goalposts have been moved and the promised amounts of pensions will not come to fruition, one of the largest chunks of British buyers (due for retirement) have now been frozen out.

With the cuts in what were always thought of "jobs for life" another large group of potental buyers are out of the equation. In the past these were the people who invested in a holday home that was used by the family, but with cuts to child benefit for the earners of 43k, their pot of spare cash seems to have dried up too.

Then there are the people who are in a good position right now, but are thinking of the future and maybe a possible job loss.....they are clinging on to their savings just to be on the safe side.

Also the reports about foreign buyers being unable to sell in Spain, has also put off potential buyers.

In the boom time, a large percentage came out on inspection trips, and were seduced by agents and such, the pound was high and the monthly payments were not excessive.

Most of these companies have gone to the wall, at one time it seemed as though there were more "atllas and Masa" vehicles on the road thean taxis.

Surveys show that great numbers would love to live in the sun or ivest in a property, but due to the falling price of Spanish property many are very wary.
Even a house bought at rock bottom prices ceases to be such a bargain if it cannot be sold on.

Re: Property - More Problems?
 

I thought the banks lax lending system was the main cause of all the problems in the first place.

Anyway, the banks will lend, just so long as you've got a sufficient deposit.

Re: Property - More Problems?
 

No my friend, I am not a master of doom and gloom, this information extracted from a global property portal we receive daily. The source of the information is always reliable and fact! I believe that information such as this should be conveyed to and shared with other members - good or bad. Does it matter if the information is 'cut and paste' if it is true fact and of interest to others? I really can't understand why you old brigade have to have a pop at new members at every opportunity - or would you prefer it if only those with over 1000 posts were to use the facility?

Re: Property - More Problems?
 

Err, no. Cut and past is disallowed by the forum owners, therefore in future you should limit it to a link, thats all. :)

I'm sorry if you thought I was having a pop at you ... not the case at all
I'm not someone who is known for having a pop at new posters :-)

Re: Property - More Problems?
 

no, you wait till we've been here a while:p

Re: Property - More Problems?
 

Sod off








:D

Re: Property - More Problems?
 

My little Spanish friend has just popped in to see us on her way home, here in UK, and tells me she will be moving soon. Not selling the current property, she will rent that out, and is buying another property, she's doing fine here!

Re: Property - More Problems?
 

The Spanish property market is not in great shape, but the attraction of Spain as a holiday, or a permanent living location is as strong as ever. It’s simply a great place to be in, with the weather and people-friendliness at the top of the list.

Why buy anyway? Renting is safe and acceptable and gives you far more choice.

I personally feel that buying anywhere in the world as an investment, at this time and for years to come, is futile.

Re: Property - More Problems?
 

More often than not, that's what they are, dreams. With no better prospects I can't see people flocking here as they did in the past. Anyway, boo to doom and gloom! :thumbdown:

Re: Property - More Problems?
 

True.
But newbies will time to learn who those people really are;)

Re: Property - More Problems?
 

Not necessarily,
I've always found that by far the best time to buy property is at times of little confidence, or during a recession when the market bottoms out.
Signs are that it may happen towards the end of this year or early next.
Too soon yet to be certain, but best not to miss the boat.
Money sitting idle in a bank account is losing money at present looking at present day inflation and almost non existant interest rates
Speculate to accumulate. :thumbup:

Re: Property - More Problems?
 

The trouble is, the experts never fail to get it wrong when predicting either the top or the bottom of the market. I’ve never even got close, but I did have some luck with locations a couple of times, and that’s what it was, sheer luck.

The one thing that could make Spanish properties attractive again for future UK expats would be a sudden rise in the value of the pound. It could happen, everything I’ve read recently points to the pound being too low, and the Euro too high.

I wish they’d get a move on.

Re: Property - More Problems?
 

Any one buying a house in Spain now really needs to think again.

Spain now has as many unsold homes as the US, even though the US is six times bigger!!

It will take a lot more than a rise in the pound a few more brits coming down to spain to changes things.....

Spain is sitting on a knife edge... Keep your cash ready and jump sure when it's the right time...:thumbup:

Re: Property - More Problems?
 

How many unsold homes are there in Spain ?

Re: Property - More Problems?
 

Some estimated 3 million in 2009. Although with all the agents claiming to be selling them like hotcakes the figure should have gone down:rolleyes:

Re: Property - More Problems?
 

What is the exact definition of an unsold home in Spain?

Re: Property - More Problems?
 

Interesting fact. Problem is that unsold houses and dropping prices are not that strictly correlated.

Re: Property - More Problems?
 

Well!!!!!!
I guess if you looking at long term investment not so bad, or like myself just enjoying the culture, people, food, and my home in Spain. Quality of life is priceless:D

Re: Property - More Problems?
 

Think positive, there is a boom on the way, sooner than you could imagine:thumbsup:

Re: Property - More Problems?
 

Well manufacturing is starting to rise in the EU, led by the German sector, but I wonder if a "boom" is really going to happen. Slow growth seems more likely, after the hardship of the last few years, but who knows, you may be right...

Re: Property - More Problems?
 

Just be patient:thumbup:

Re: Property - More Problems?
 

There are over 1 Million NEW empty homes in Spain unsold. Add to that the number of repossessed houses the banks hold the scale of the problem is VAST.

The banks are speculating and holding onto the majority of the properties which is holding prices up....

:thumbup:

Re: Property - More Problems?
 

It has to be said, there are indications of something afoot, if this article (in Spanish) is to be believed. I don't know anything about this Nigel Bolton from BlackRock, but he claims there's a tsunami of money waiting to invest in Europe

http://www.expansion.com/2011/02/05/...1&t=1296987663

Of course it'll be interesting to see how the Germany boom helps the rest of Europe. We've all read how they're looking into hiring Spanish workers, but it's not unknown for Germans to invest in Spanish property (look at Mallorca over the years)

http://www.bbc.co.uk/news/world-europe-12359897

Re: Property - More Problems?
 

This Bolton guy could be right but I doubt it will be in property investment, or even Spain. He would say that though considering he is head of european investment section:rofl:

Don't know if it was this thread or the other property one but someone mentioned agents (trying) to talk up the market. Read a piece in evening standard this week, a luxury development in London claims to have sold 60% of units available, when a reporter checked they had sold two:lol: Same as they have ads for property on the CDS saying last 3 units remaining and I wonder why are they spending all the money for a full page ad for the last 3:rofl:

If these Agents are selling as many as they claim why aren't they a bit more prosperous...commissions aren't exactly low:confused:

Re: Property - More Problems?
 

These things go in cycles, and normally I'd agree that we should be too early in the cycle for things to recover strongly. However I wonder if things like all that QE (billions being pumped into the economy) and the unrest in ME countries diverting tourism and investment elsewhere, may be hurrying things on somewhat? We're starting to see reports like the following (Attic flat in Valencia selling in 4 hours), which while they may be isolated cases that are being publicised to stir up the market, may be an indication of something afoot. All a bit academic to me, as I'm not about to step into the property market, and I still feel we've 2 more years of pain, but who really knows for sure?

http://www.houses-for-sale-in-spain....lls-in-4-hours

Re: Property - More Problems?
 

Which we need to add the vast amount of empty second hand homes waiting for a buyer and the partly finished or nearly finished homes, and off plan projects that are sort of sold, where deposits and have been paid.

So the total rises considerably.

Re: Property - More Problems?
 

The article you share below about Valencia is absolute rubbish.

There have been 10,000s of luxury flats built in Valencia over the past 5 years. All pretty central and at high prices (300k plus). Thousands of them are empty as they've never been sold, leading to depressing soulless neighbourhoods which was the main reason why I turned down a job in Valencia a few months ago.

You can rent nice ones for less than 1000 euros a month though which is good given they are new and nicely made flats, but bad given that the neighbourhoods feel like noone lives in them and there are few decent bars or shops nearby.

Re: Property - More Problems?
 

I have a good friend in the city, and his sister/brother-in-law bought a new built flat in a development close to the "City of Arts and Sciences" area. I've visited the place, and although I'd agree the price felt high (like most of southern England) I'd disagree that it felt like no-one lived there, and there were actually plenty of shops, bars, play areas for children near by. In fact it seemed an ideal place to live, especially now the new AVE line to Madrid is operational, although (again) I'd agree that prices are still too high.

Re: Property - More Problems?
 

Spanish Housing minister appeals to British buyers to return

http://www.telegraph.co.uk/news/worl...to-return.html

I think she's got a hard job here, and doubt the numbers of Brit buyers will return to previous levels. But, what do I know?

I think she'll do better concentrating on the "other northern European countries". The UK's short term prospects look distinctly bleak at the moment as the govt. keeps cutting jobs.

Re: Property - More Problems?
 

That was the same area we looked around, we thought it was soulless, but everyone for themselves :)

Re: Property - More Problems?
 

Another reason why there are so many unsold homes in Spain on the costas and all over Spain, is that the Spanish are not buying like they used to.

I am not saying that it is through lack of funds, of course it has influenced it, but one of the main reasons is that that second homes have lost their shine.

It was very much the norm for people in large towns in Galicia to have a second home in the mountains or on the coast.

Lot of children were left them by their parents, but now people want to travel more to different places, and instead of the weekend escape to the holiday home or back to the village, being a form of enjoyment, it has become a bind.

They have woken up to the fact that all you do is change the kitchen sink, and they would rather spend their free time doing other thinkgs rather than maintaining a second property.

Traditionally their mothers did not mind all the extra work involved, but most under the age of 35 dont want to know and are trying to sell these unwanted properties.

And with the cost of travel coming down in price, relitively, they are heading further afield instead of doing what past generatins did, and who can blame them.

It can be a pain in the butt, packing up your main home, with all that involves (emptying fridge, cleaning etc)to spend a month away and then have to go through the whole process again after the holiday has finished and lots have seen the light.

Re: Property - More Problems?
 

You may be right, but I suspect it's more down to harsh economic circumstances than a reaction to owning a second home. At least the economy looks like it can start to recover now:

http://www.financespain.com/content/newshighlights

http://www.financespain.com/images/S...ic_Figures.jpg

Re: Property - More Problems?
 

I still think that Spanish population have changed in their thinking and this is a bigger influence than people think. It may not be the majr infulence, but causes effect nontheless.

A great number of Spanish second home owners have inherited them, they were houses, that have been passed on through various generations, and used for holidays, in a lot of cases they were the "original" family home, that was left when the family had to look for work in cities etc.

Speaking to the younger population, they have no desire to own "weeken or holiday home". They prefer the easier life of not having the responsibility and expense of the upkeep and enjoy their spare money and leisure time in a different way.

Re: Property - More Problems?
 

That very well may be true especially now money is tight, last thing they want is to have to maintain a property they use 3-4 times a year.

Loads of Spanish families have 2 or 3 homes and this has a huge influence on the market. When you are trying to sell your second home then you can afford to wait for what you think it is worth. There is no reason to sell it cheap like you may have to when moving from your main residence.

Re: Property - More Problems?
 

You dont have to sell it cheap, the main problem seems to be selling it full stop. I know people who have not set foot in their second home for years, they may have it for sale, but as these second homes are not so sought after anymore, as the pull of their "village" is not so strong.

Years ago these places were snapped up by nwighbours who wanted these places for extended family so that they copuld all get back to their roots for holdays etc.
Some of these places were only an hours drive from where they lived, and their horizons only stretched that far in a lot of cases.
The women were content to cook and clean just like at home, now things have gone the other way, most would rather nip on a flight to Cuba than have all the hassle of going to the house in the country, beach, or wherever.