Property Prices
 

I am interested in anyones opinions regarding current property prices in Spain, North Costa Blanca area in particular compared with the UK?
I know its on a downward spiral still in the UK and feel it may from what I have read continue to drop steadily over in Spain?
Anyone got first hand experience of having to drop drastically in order to sell up?
I spoke to one estate agent last week and they reckoned the banks had more properties on the market than them! Repossesions
Superpot

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Ive read somewhere that bank head offices are telling branch managers not to reposess as they cant sell them ,better to get the client signed up for an extra 5 years on the morgage!!:thumbdown:

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My Bank manager said the same thing!

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According to Pedro Solbes (Spanish minister for the economy) Spain is going to avoid recession and continue growth. But he would say that wouldn't he?

I don't think it's good news anywhere in the world at present, economically anyway. If you are looking at investment property then I reckon your money is best off in the bank, however if you are after moving home I think there are some bargains around on the CBN. If you try to time the market you could end up living out your days watching the news and pondering, if you want to change your life then do it, just make sure you have a plan and the numbers stack up.

Todays negative equity is tomorrow's (give or take a decade) 50% profit.
Property is always a good investment long term, as Paul Getty Jnr once said, 'land is a commodity that they ain't making more of'. Or something.

Ste.

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Yes he would!

Truth is they are all trying to pretend that they've hit bottom, when there is sooooooo far left to go.

I wouldn't expect the real crunch until after Summer 2009, after what will probably turn out to be the worst year Spain has had for ten years.

rising unemployment means defaulted debt, which means write off at the bank, which means money taken OUT of the economy, which means, a whole lot of shit..... and it seems that some of us brits are moving out to France or even back to the Uk, which in turn means more houses on the market and more unlettable property

In the UK we'll all have to get used to cheaper houses, we've lost a big chunk on ours, the Spanish market is simply taking it's time coming to the realisation that they will have to do the same.

Estate agents round here have either shut or are hanging on by their fingernails

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So are the spanish banks lending any money for second homes ?

I have paid a 20% deposit down and in reality with the house now worth less i am concerned that I will have to try and find another 20% deposit !

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I have carried out buyer surveys all through this summer. I have more Dutch and Irish clients than usual but Brits are still buying. Most are getting good deals at around 20% less than they might have paid last year, (many vendors were being a bit cheaky with asking prices anyway) though some desirable properties are still commanding big money. Don't forget that the number of Brits planning to purchase or move abroad is at an all time high, it's only the credit crunch that is delaying those plans, rather than a change in desire for improving their lifestyle (lifestyle improvement is a major factor that must be considered, rather than just trying to make instant property gains). It's a buyer's market and sensible property hunters can still make good long term investments. There is a serious glut of apartments, mainly because of thoughtless over supply rather than a major change in demand. Any property type (even an apartment) in the right established area is still potentially a good buy. Detached well located villas are always sought after, but no one will be paying over the odds in this market. Banks are now more sensible often offering up to 60% instead of 100%!

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So hows the restored cortijo with land market looking?

Rgds

Rotor

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For honest answers about property markets its really not wise to ask an estate agent...

akin to asking the prime minister about the state of the economy..

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True but the UK treasurer has just admitted the UK is stuffed:rofl: perhaps we are going through a phase of honesty amongst professionals!!
:rofl::rofl::rofl::rofl::rofl::rofl::rofl::rofl::r ofl:

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when a politician admits something.. you know the reality is at least 10 times worse..

so the UK is triple f@*?ed

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True so very True

also ROFLMAO

Superpot

As I am in the process of trying to buy a 3\4 bed house with garage or land to build at a garage in Benitachell \ Javea area I just hope the peole selling become realists with their asking and accept they have to drop in order to sell like over in the UK.
I keep my eye on the news many times daily and its getting worse and worse and yes Mr Darling has opened a big can of worms. Is he banking on honesty being the best policy? I don't think so somehow.
Superpot

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I have been saying to most bored enough to listen for the last two years that the UK market has a long way to go down - likely to be 2010/11 before the bottom starts to get scratched in the housing market there..

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And whatever happens in the UK always has an effect here, it's not rocket science, and another estate agent closed this week round our way

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Hi

I keep an eye on all matters financial. I believe that we will not hit the bottom until xmas 2009, and we will bump along the bottom until the "War Boom Babies" come on song in full force (say people born 1947 to 1949 - means in 2013 the average one will be 65).

So if you are thinking of buying a house then my advice would be don't do it now. If you have an income without working then rent now and keep an eye on prices. If you have a safe job in the UK, then wait until you either have a separate income, or until the rise happens.

Spain has too many houses having built 800,000 every year when realistically 300,000 is what should have been built. That housing stock will take time to sell, say two years minimum.

Dave

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That still won't undue the damage done by stuff like this

http://spanishshilling.blogspot.com/

When you buy in the UK/France/Italy/Cyprus/Morocco, etc your investment is generally safe.

When you buy in Spain you should do it where you hope no-one wants to build a road, or upgrade a road, or build a golf course, extend a marina - or build a supermarket, or a private clinic, or, well, just about anything that might make someone with the right connections a couple of extra euros.

A Risk Assessment would probably rule out buying in Spain altogether.

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I had a quick look at the blog and it seems to be about a compulsory purchase order in the future ?? These things could happen anywhere, and have happened in the UK with residents getting compensation if their property is in the way, but perhaps not if they are affected by extra noise.
I am not 100% clued up on all things Spanish, so perhaps it is more serious than I think. I intend to buy somewhere in a town centre, probably an apartment, so hopefully won't be affected.
As regards not buying yet, I will need a place to live and rather than pay rent for a year or more, it seems better to me to buy after I have lived in the area for a few months to get a better feel of exactly where is best. I will of course make a ridiculously low offer on 2 or 3 which appear suitable, and if one owner wants my cash then a deal will be done. As I will be buying at the bottom of the price scale, then I can't see that a property now at a reduced price of around 70,000 euros will be a bad buy if I can pay perhaps 60,000 or a bit above. Surely a basic property won't drop from an original price of 80,000 to 50,000 or less ? Hard to say without discussing a specific property I suppose, but just my thoughts.

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I think you'd be wiser renting for the first year, because most people agree that prices are set to drop.

You'd feel pretty sick if you bought a place that you didn't like after a while and then couldn't sell it.

It's very easy to buy - not so easy to sell.

But after living here for a year you'd find that out for yourself, I promise.

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The Land Grab laws have been causing misery to everyone who is affected.
It's not like the Uk where you have a reasonable prospect of compensation in a reasonable time, and you can negotiate.


Here there is no negotiation, and very little compensation if any, that will take anything from 5 or even 10 years to come. In the meantime you'd have to find somewhere to live, perhaps still be paying the mortgage on the property you've just lost.

Bulldozers have turned up without notice, although those in power have sworn that notice was given - this has happened many times before and to some very smart people - they have used the legal system and got nowhere.

Remember, this is Spain not the UK - it's different out here.

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Bets? In South cambs, plus Oxford, I think, they take 50% of your land for social housing and then devalue what's left.

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I think you'll find that the majority of people who move here do so sucessfully. Yes, there are problems with the Valencia Land Grab Laws (which incidentally, Spain are being taken through the European Court at the moment), but I do think its being a little overstated here.

When it goes wrong it goes wrong big time for sure as illustrated by the Priors disaster, but equally things like this can happen in most of the countries you mentioned.

Extremely good research is what is needed most of the time ... yes, if you like, a risk assessment. :)

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That's absolutely right, the majority have bought and still live happy as can be, I probably should have put that in my rant, err.. post:).


But it's still a possibility that should'nt be ignored, because if you happen to be one of the unlucky ones, then your dreams and your investment will turn to dust.

I suppose I must sound like a real doom mongerer; to be honest it makes me angry when I think of those people who have fallen victim to a form of legal theft.

Well there you are, perhaps it's a subject I should avoid, sorry, just couldn't help it.

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Yeah, well from personal experience being land raped in the UK ain't much fun either!

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Did you get ANY compensation?

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No not at all ... although the majority live happily with their property ..... the pain that people like the Priors must be going through is immeasurable and its difficult to understand how unfeeling the authorities were.

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yes, it's unfair, and most spanish people would agree.

But we love it here, warts and all.

I wouldn't change my spanish vecinos, it's like having an extended family!:D

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If anybody is looking to move back to the UK I know where there is a superior 3 bed semi for sale complete with a building plot with planning permission :)

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As if. We even have to pay to supply the services , roadway, etc to them.

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Hi Carefreebirit,
I hope I have misunderstood your reply. Are you buying at that price bevause you can't afford any more, or just because at that price you can buy a servicable property? There have been many warnings about changing countries without doing the sums right. I hope that you don't mind me askng, the intentions are the best honest.
Dave

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Good advice,having checked out the legalities of all of the documents etc,---check the classification of all the surrounding land and then study the location of the site and consider its possible potential to developers or road builders.

Regarding the land grab I think its fair to say that quite a few Spanish have also been affected,though maybe not quite so much,as they tend to live in more established areas.

I am out of touch with the situation at present,but two things crossed my mind.
1.-Is it not possible to slap an embargo on land which may wrongly have been taken,limiting its further use,in view of the fact that it is an on-going case in the EU Court?
2.-If the Court finds in favour of those who have had their property taken,is their any possibility of those responsible having to pay fair compensation at some time in the distant future?

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As I understand it the outcome of any action concerning the activities of the Ayuntamiento rather depends on who you are, or more importantly, who you know.

For example, it doesn't matter how many local people DON'T want an extension to the marina at Javea, someone well connected with very deep pockets does.

Now I know that that can happen anywhere and does, but there are certain characteristics of the Spanish political environment that haven't changed for a long long time, and without transparency never will.

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Apart from the docs, spend some time wandering about where you are buying. Ask the neighbours if they have had any problems. Go to the town hall and ask there if there is anything you should know, take an interpreter. Gather information! If a newbuild, research the builder. Check on bonds. Leave no stone unturned :)

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At least 2 properties we saw in April are still for sale and at reduced prices but I am not at all surprised.

We have most certainly been convinced of the need to rent for at least 6 months and probably a year.

We were looking around North Costa Blanca

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Hi, we have been looking for about 2 years now and we have rented a villa over in toscal area of Javea for 2 years come Christmas.
It is very sensible to rent for a period so at least you can get out and about to view loads of proeprty and decide upon a particular area you really want to be in.
Als otalk to the locals, find out where they actually live.
It is highly unlikely they live on the urbanisations where the residents are predominantly english\french\dutch or german.
Maybe you want to be amongst the brits?
I am not too bothered as I am married now to A spanish lady.
You will find the properties up in the hilss ,ay have fabulous view but sometimes its impossible to sit by and enjoy the pool because of the biting winds! Als some remote areas do not have landline services.
Are you retiring here or plan to work?
Have you got any particular areas in mind yet?
So many questions.
Good luck in your quest.
Jeff