House prices

Hey, i am new to eye on spain! We are looking to move out there this year and was wondering if anyone had a crystal ball and could help with what house prices are gonna do??? To rent or to buy... that is the question??!!!

I wouldn't expect a short term return on property, so from that perspective rental makes a lot of sense, especially with the high purchase costs. However there are some good deals to be had at the moment, and the mortgage rates are low, meaning that your living costs may be cheaper if you purchase. It depends upon how long you think you may be there, and what the impact of tying your cash up on Spanish property would be if you decide to return home.

Not a straightforward choice..... I guess most people would start by renting and take it from there. 

The obvious answer is to rent somewhere in the area you are thing of buying and do your research then buy ,I do not think that house prices will fall anymore but there will always be some people that are desperate to sell due to family and financial circunstance

Good luck whatever you decide if I can help just call

Thanx guys, any info helps!!

Hi Nizzle - Spain is a very big country and you will need to think firstly about what kind of area you want to live in - beach, inland, town, country, etc.  Then I would recommend a holiday before even committing to a rental contract.  When you are ready to move out, you will find lots of choice in most of the areas popular with Brits, both for rent and to buy.

Purchase prices have fallen up to 50% in some areas and this has had a knock-on effect on rentals.  In this area (Costa Blanca south) I don't think we will see much more in the way of reductions in prices, but I'm afraid I don't have that crystal ball you asked about!

You will see lots of posts here about different areas and there are community forums for particular developments too, when you begin to narrow it down a bit.  That should help.

You don't say if you need to work or not, but be aware that it is very difficult to earn a living here at the moment - most jobs are commission-only sales jobs and times are hard.  Make sure you have enough money to last a couple of years before you take the plunge, unless you have a guarantee of work here.

Whatever you decide, I hope it goes well. Do keep us posted with your progress!

i personally think prices still have a little further to go in certain areas,if you decide to buy take a close look at whats happening in the political circus intrest rates are about to start to rise.my advise would be to rent and watch

This post, although long, has some well argued points to ponder upon and is well worth the time to read it.

http://www.eyeonspain.com/forums/posts-long-2075.aspx

Portugal has just gome to the ECB for a bail out, the ECB has raised it's interest by 25 basis points today. Most commentators seem to feel that Spain is safe from needing an ECB bail out but, after Portugals situation, I'd let the dust settle on that. Don't believe a word the politicians say. The Greek, Irish and Portugese politicians all swore blind that their country did not need a bail-out. In fairness, they have to. Good idea to see what economists and economic reporters have to say.

We've had a place in Spain for 10 years and want to buy somewhere different which will need more capital sending from the UK. There's no way I'd commit to buying anything as things stand. I think the renting advice is good advice as rents are very reasonable and it'll give you chance to assess the housing market in teh area you want to settle in and also to see where the Spanish economy is heading.

Some banks are doing a rent 2 buy deal, they will take off what you have paid in rent if you buy the property.

 We are in Playa Flamenca and have noticed over the last couple of months that one by one the properties on our urbanisation have sold, for just under 50% of peak prices. However, two have recently gone for more than that. Still lots of people coming to see properties. Maybe they have hit bottom and at least it seems possible to sell, albeit at a vastly reduced price from the peak. If you see a good priced property I would be tempted to buy. Kevin

Well we ve gone on the rent to buy scheme with a certain bank, we are very happy with the price of the property and the monthly rent. It might be an option for yourselves,  worth looking into.