Hello Everyone... Urgent Advice Needed for a New member Please

Hello from a New Member


Sorry if I may have also posted this in the  Estate  Agents Forum.


We are in the process of purchasing an apartment on the Costa Del Sol and paid the 6,000 initial reservation deposit a month ago.


Our intentions were to rent it out long term for a few years and take holidays there.  

We would then move over to live in Spain when our child gets to say 11 years old.

The process has been ongoing for a couple of months now and we are close to paying a 10% deposit to secure the deal.

Considering what has been happenning recently with increasing prices for Mortgages, Food and Fuel, we are having serious second thoughts.

Does anyone believe it is a good time to buy now or am I better off playing safe, cutting my losses { 6,000 euros } and walking away.

We have secured a substantial mortgage which has high monthly repayments so if the Credit Crunch gets worse and prices continue to rise then we will be in serious trouble.

Wlii we be better pulling out and looking to buy in Spain in a few years time when the prices and the economy are hopefully more stable?


Any advice would be appreciated.


Thank You

Jamiejedi

 Spam post or abuse? Please let us know

When I was looking to buy a property on the CDS in 2002/3 I did a lot of research.  Prices then were rising in huge leaps and I had to think about raising extra funds.

When I asked about mortgages I wanted two quotes, the rate now and a worse case scenario.  That way I'd be able to work out if we could afford to finance our dream.

I was searching in an area I knew well as we were regular visitors, I knew the prices of apartments but with the Euro changeover prices nearly doubled.

I recently looked at one of the old websites I used to use, same apartments were there and  priced now at £150k.  These apartments were advertised for between £30-40k prior to Euro. 

I did find an articule about the price crash on the CDS in the late 80's, property prices halved then when people were defaulting on their mortgages.  I initially put the price rise down to the market getting back to what it was prior to the crash.

Personally I think the prices on CDS are too high, people have been caught up in the property explosion there and have bought hoping to make a quick profit.  Too many properties now and too few buyers.  

You say that you will have a substantial mortgage, will you have to rent out the apartment to pay some of it/all of it?

If the latter then I'd seriously think about pulling out, there will be a lot of competition out there so you might find it difficult to find a tenant.

It's a lot of money to loose but you could end up loosing a lot more if you carry on.

 Spam post or abuse? Please let us know

Hello

I am in similar situation. I have had an offer approved and mortgage going through, although nothing signed yet. I never paid the deposit as i don't see why we should have to make that commitment with the market being as it is, it is now a buyers market.

I thought i got a good deal however after reading through this web-site i aint so sure now! I was planning on int only mortgage for a few years and holiday rentals to pay some of mortgage, i would then holiday in spain.

The advice from many people on here is that there will be significant drops in prices in next few years and to wait until then before swooping in like a vulture to pick up a place at half price. That sounds good, but the interest rate will obviously be a lot higher. 

i am unsure if i just to buy and weather the next few years out, with up turn in the next few years. Or wait and hope to find the right place with a good saving, but high mortgage rates in a year or two?

 Spam post or abuse? Please let us know

It has to be a personal decision as no one can predict the future

From past experience over 30 odd years you have to look medium to long term

there will be some very good deals and some owners will be desperate to sell but for most they will just hold until the EU property markets start moving again

General opinion seems to be 2010 for a start of a normal market,,,,,,,next boom is probably circa 10 years away

if you are a 'life style ' buyer with a touch of investment, then if you like your location, it is legal and the development will be completed , the price is reasonable and you can afford it , then why not buy it and enjoy using it 

People buy boats which depreciate or caravans...... or spend more on holidays per year  than the finance cost of buying a holiday home in Spain

If you are a property dealer then you can look after yourself....that's a business!!!

But a life 'style buyer' ......it's your money and if you want to enjoy it in Spain...life is for living!!!

Ps: I am also a buyer...not CDS too expensive for me.......Almeria near Huercal Overa.....get a 3 bed Villa for the price of a small apartment in CDS.....all facilities you want, not as busy and they say more sun!!

 Spam post or abuse? Please let us know

Hi,

It is not all doom and gloom on the rental side.  However there is a glut of 2 bedroomed/2 bath apartments. Avoid these like the plague!

Properties (preferably villas) that have 3 +  bedrooms, and have a 'sellable' feature ie on golf course,sea views, private pool, well furnished, etc will have a healthy rental return. 

 Spam post or abuse? Please let us know