Economic situation in Spain

Dear All,

The value of the forum is information, but of course that information has to be correct and current.

Perceived wisdom at the moment is to rent not buy as the market has not yet reached stability.

The market has to obviously recover form the bubble and as Maria says..............

(fruit of an uncontrolled over expansion promoted by the crazy financial guys)

I of course have little direct experience of "realistic" mortgage "valuations" but the few that I have seen have not been valuations at all, realistic or otherwise.

They have been simple build cost estimates with no direct connection with value.

They were "independent" in that they were sub-contracted out but could have been produced by any schoolchild from a simple building cost schedule book.

If these figures are mistakenly used as values it may well account for the government figures which show a modest fall in value rather than the crash that has occurred.

Additionally they have been falsified by corruption to include stairwells, balconies, terraces etc. to inflate values.

The lady auctioneer has also told us and referred nationally to the corruption of  everyone with a pulse being granted a mortgage based on these "valuations".

Georgia has also confirmed the state of the market with an excellent comprehensive post.

So there is no "ranting and raving" here it is all distilled forum wisdom.

Regards

Norman

as with most things it boils down to opinion eg: "perceived wisdom at the moment is to rent not buy as the market has not yet reached stability"

another could interpet this statement as "its not going to drop any further now is a good time to purchase"

in regard to purchases people purchase for imo one of three main reasons

a)love the property and are happy to have it as their full time home or holiday home (dont care whether it goes up or down in value)

b) it,s a good deal at the right price (hoping to buy it maybe use it but to sell at a profit)

c) much as a) above but feel that it will cover a large part of its costs re rental income and should not lose money in the long term

as for information being correct and current sadly when discussing property one is never going to know if this is the case unless they have the benefit of hindsight!

It would be a sad place if we had to assume that all vlauations etc were falsified etc etc!

Oh Dear,

the salesman has had a change of mind, he is no longer prepared to wait for the UK economy to be "fully repaired", he has decided to prove that the salesman "joke" is not a joke at all.

He has decided to spin a way out of his problem of not planning for the end of the bubble.

Sad, very sad.

Regards

Norman

Advisor raises some important points which shouldnt be brushed aside without some thought / consideration. Thank you for your comments Advisor

My hubby and I love our property in Spain and whilst it may have lost some value over the last couple of years, we have no intention of selling it. For us, its a longer term investment and holiday home which we are very happy with. We hope to move over to Spain permanently at some point in the future.

Property prices may reduce some more but at some point, they will increase and I have faith in this statement. The general economic climate in UK, Spain and other EU countries will improve eventually. It may just take a few years.Property booms and slumps are prevalent the world over and are not exclusive to Spain.

Normansands

if your post refers to my comments perhaps you would like to clarify it thus making it understandable for all?

Advisor... I wouldn't hold your breath. We've had nothing intelligible from NS to date...don't see why he would start now...although matbe as a New Year resolution....

Dear All,

all perfectly normal and part of what the forum is for as long as it does no harm and no "ordinary joe" is encouraged to over extend themselves.

enthusiasts will always encourage others with their stories and indeed why shouldn't they?

their stories are often enjoyable to read and though they are strangers, to applaud their satisfaction.

Normal human stuff.

hungry traders spinning is a different story, even if it does "boost" the enthusiasts hopes.

however, given what Advisor has already stated, what Maria, Georgia, Techno and others have confirmed, Wend691 is perhaps understating the crash more than somewhat.

She is of course priveleged to do that since in her position financial value does not mean much, unless she has a mortgage and has any concerns about inheritance etc.

I have no expertise but cannot foresee the return of the bull market, unless of course the banks are forced to offload their property portfolios at silly prices. As Advisor has also said there is always a buyer at these prices.

Wasn't it rumoured that Alan Sugar did something similar with a hotel in CDS?

I hope that is understandable.

Regards

Norman

Just been reading about the IMF's latest growth predictions for Spain

the International Monetary Fund predicts growth of 0.6 percent this year, 1.7 percent in 2012, 1.9 percent in both 2013 and 2014 and then 1.8 percent in 2015.

Source: AFP

It looks like unemployment is going to stay high for the forseeable future. 2% + growth is usually the rate needed to create jobs isn't it?

imf,s global predictions generally give a better insight than that of particular country an example being;

if the UK and Scandanavian and German economies became bouyant that is highly ;liekly to lead to future house purchases in Spain thus increasing work thus increasing gnp etc etc

with the world todau being "such a small place" most highs and lows are the ultimate result "knockon effects" etc