Are People Willfully Blind?

Please note this is not an anti Spain thread, just buy a anti buying a house thread

Why in God's name would any be stupid enough to buy a place in Spain after reading horror stories posted here and elsewhere. Are people willfully blind, it is the only reason I can think that anyone would be stupid enough to buy a property in Spain, particularly when you can rent for far less money and ZERO risk to life and limb.

For example (yes not the coast but same idea) we are moving into a beautiful chalet in the north of Madrid, rent a grand a month or less than a third the cost of buying it. Not only that had we followed conventional wisdom and decided not to throw our money and buy (at a higher cost) we would have missed an opportunity to move to a far nice place. Still in spite of that several friends can't understand why we won't buy.

I can understand someone buying during the boom, we all make mistakes but buying a house in Spain now (particularly if you're paid in pounds) is utter foolishness and you have only yourself to blame if things go south.

BTW I can understand why no here wants to talk about this as forums like this make their money peddling real estate. 

 

 

 

 

 

 

 

 

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 Just a little piece of economics for you that will maybe answer your question.

For Example; if you rent the home you are talking about for the next 10 years it will cost you 120,000 Euros.

At the end of that period you will have absolutely nothing to show but a few memories and a bank account minus a very large amount of money.

You can buy a 3 bed 2 bath Villa with a pool including all taxes and fees for exactly the same price........after 10 years you will have a property outright and i would imagine a small profit taking every other property cycle into account.

If you and the person whopurchased, both cash in after 10 years who would you guess to be the happier??

Maybe that answers the Thread title for you.....but with a different outcome than you predicted!

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And the person who originally bought the property for 2-3 times that price, I'm sure they're really pleased with their purchase, and of course you're assuming that you're buying the at the bottom of the market. Don't forget interest cost taxes and upkeep that's all money down the drain as well. Innate a friend from SA who is mistified why we won't buy (more on that latter) but when you talk to him you find out he is struggling financially because his house has been a huge financial drain on him. If he ran the numbers, downpayment, upkeep taxes, interest paid and deduct the that from what he nets. Form the sale of the house you'll find he's deepen the red. Renting I would imagine would have been much cheaper. Everyone says renting is throwing away your money away but they covet about interest, taxes upkeep and if you bought in the last few years seriously negative equity. Personally if we had bought as per conventional wisdom we'd be stuck in a house that we over paid for with a 30 year mortgage And in negative equity Even worse we wouldn't have been able to move to a large villia like we're doing Yes generally owning is preferred to renting long term but to say you're throwing you're money away by renting is simply not true Btw what does the villa rent for short term long term

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Pardon the lack of page beaks, did this on my iPad, does funny things sometimes. Also I'm referring to people who move to Spain to live not so much holiday home buyers

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