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Property - More Problems?

Property - More Problems?

Old Feb 5th 2011, 11:42 pm
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Default Re: Property - More Problems?

Originally Posted by steviedeluxe
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
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.
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Old Feb 5th 2011, 11:55 pm
  #32  
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Default Re: Property - More Problems?

Originally Posted by cricketman
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.
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.
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Old Feb 6th 2011, 12:54 am
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Default Re: Property - More Problems?

Spanish Housing minister appeals to British buyers to return

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

Beatriz Corredor, the Spanish housing secretary, promised new planning laws to end the confusion which has led to some British home owners being ordered to knock down their properties deemed to have been illegally built.

“Come here calmly, and trust in the system that we have and the transparency we provide,” she said.

“There is a very attractive offer on the table here, with prices significantly lower than two years ago, and you will certainly find what you are looking for.”

Her plea reflects growing alarm in Spain at the huge stock of newly built homes waiting to be sold - of which 400,000 are near the coast - since the country’s economic crisis began. Prices have tumbled by up to 40 per cent and banks and construction firms are desperate to recoup some of their investment.

In recent years, Britons have bought one third of all Spanish properties sold to foreigners. But many have recently been put off by horror stories of planning permission being retrospectively revoked and other complications, and the number of British buyers has slumped.
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?

Over the next few weeks the Spanish government will also embark on a “roadshow” around Britain and other northern European countries to promote the country’s property market. House prices have fallen on average by 24 per cent in the Malaga area and by 19 per cent in Tenerife, Mrs Corredor said. “They are very attractive reductions, especially in properties of high quality. They are properties that are worth the trouble.”
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.
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Old Feb 6th 2011, 5:13 am
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Default Re: Property - More Problems?

Originally Posted by steviedeluxe
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.
That was the same area we looked around, we thought it was soulless, but everyone for themselves
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Old Feb 6th 2011, 5:44 am
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Default 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.
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Old Feb 6th 2011, 5:52 am
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Default Re: Property - More Problems?

Originally Posted by JLFS
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.
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

The Spanish economy picked up again at the end of last year driven by external demand after having stalled in the third quarter, the Bank of Spain said Friday. In its first monthly economic bulletin of the year, the bank said GDP climbed 0.2 percent in the fourth quarter from the previous three months when output was unchanged. Compared with the end of 2009, the economy grew 0.6 percent. For the whole of 2010, the economy shrank 0.1 percent, an outcome better than the government’s initial forecast of a fall of 0.3 percent.

“It is positive that Spanish growth in 2010 — if the Bank of Spain’s figures are confirmed — are above forecast,” Reuters quoted Xavier Segura, the head of the research department of savings bank Caixa Catalunya, as saying.

The National Statistics Institute is due to release its flash estimate for final quarter growth on February 11 and a breakdown of the figures five days later. The economy shrank 3.7 percent in 2009 as Spain suffered its worst economic crisis in living memory. The country eventually emerged from almost two years in recession in the first quarter of last year, but growth has been at best anemic, with Spain lagging behind the rest of the euro zone. The recovery has been constrained by the government‘s austerity drive to rein in its yawning public deficit, with hikes in taxes and duties, an average 5-percent cut in public sector wages and greatly reduced outlays on public works, which has put a damper on domestic demand.
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Old Feb 6th 2011, 5:59 am
  #37  
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Default Re: Property - More Problems?

Originally Posted by steviedeluxe
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
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.
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Old Feb 6th 2011, 6:12 am
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Default Re: Property - More Problems?

Originally Posted by JLFS

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.
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.
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Old Feb 6th 2011, 6:20 am
  #39  
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Default Re: Property - More Problems?

Originally Posted by cricketman
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.
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.
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