The Market - Bottomed Or still more to come???

Only take you 4 days [if that ] to decide that Spain between Aguilas and Mojacar is 'the place'  

It actually took us 1 day to decide and buy  as an investment and then after regular visits we have bought a home for the winter

It is just the best location if you want a Spanish environment and all facilities

No semi motorway to drive on!

Everything is cheaper and even the Expat community is more friendly because it is smaller

But good luck

No use looking here if your ' new life style ' is in Costa del Sol 

Hi All,

I have recently been back to the UK and while visited a couple of old friends that have been agents over there for years.

I wanted to know the views on the Market there and what there perception was of the Spanish market at the moment.

I was quite suprised to hear that they expect house prices to drop by 5-10% over the next 2 years,of course this is only speculation and there was no sign of a crystal ball so i took it with a pinch of salt,what is more worrying is that lenders are now agreeing on up to 20 times salary and 125% mortgage to keep the market moving.

This surely is the road to ruin,they also added they the number of repossesed property is astronimical due mainly to the factors above.I was quite suprised with the prices in their windows after being off the ladder there now for some time,i really do not know how first time buyers stand any chance of buying property.

What they also said is that they expect the rental market to come back as people are forced to rent rather than searching for a huge deposit and crippling monthly payments.

It is always good to know the UK market as our own market is affected by this with the large amounts of Brits descending on these shores.

On returning to work this morning i find a list from a bank that we have been working with closely for the last year.

I know there has been posts on here concerning bargain properties and on how they do not exist and obviously this maybe area dependant but sorry guys i am going to have to disagree.

The list i received was of 115 repossesed properties,now you would think that this would be all ex-pat owners that have over stretched themselves,not at all,many of them are Spanish owned,so obviously the 100%increase in interest rates over the last 2 years has hit more people than is apparent.

In speaking with the bank today the general concencus is that interest rates will drop here but not by much,and again no crystal ball so only speculation.

I personally think that certainly in this area(Costa Blanca) prices have dropped back at least 2 years and are now ready to inch slightly ahead with more realistic increases due in the future,for example we have recently sold 4 properties from vendors at their purchase price in 2004,and as for agents always selling for more than a private sale i have just sold an apartment for €20,000 less than an identical one advertised on this forum.

I think people have heard the doom and gloom, shaken their heads and still quality of life is rising to the top.

Regards

Georgia 

UK market is flat as so is most of EU It will probably remain so for most of next year

The credit crunch has hit confidence and it will be a while before it returns

The UK market is unlikely to drop significantly if at all but there will be pockets....today the press report a drop if there has been no annual increase!!!

Mainly because the fundamentals of the UK economy is fair and whilst the mortgage market is getting a little tight interest rate falls will compensat

A house bought in UK now will still be a good investment for the future

Asking prices may fall but that is not 'values' falling.....just vendors expectations!!!

Your experience of the Spanish market is not unexpected...The Spanish market is in many ways similar to UK market and again set for a slow down not a crash.....same reasons, the fundamentals of the economy are fair

Also the majority of buyers from UK and elswhere do not have big mortgages and no rush or need to sell, after all they have bought for a 'Life Style ' reason and that has not changed

If the  Spanish get in to mortgage payment problems ,traditionally the family help out , so Spanish mortgage arears and re possessions are not expected by the Banks to be a major problem 

There will be some inexperienced investors who have bought to ' flip' [ often with poor advice!!] but not enough to have a major impact on the market

Agree with Georgia, that if you are buying for a 'Life Style' change why wait, now is as good a time to buy as any and get your enjoyment....in a few years you will look back and see that you have made a good buy

But be selective, buying in the right locations are always medium to long term a good buy   

Im not holding my breath on that one!

My crystal ball looks a bit more cloudy than yours and whilst people who bought for lifestyle will be able to complete - who knows what the future holds and just what everyones finances are.

People sell for all sorts of reasons, not just because they are 'flippers' and unfortunately 'flippers' make up some 50 - 60% of each off plan!!!

After forcasting this mess from 03, I doubt there will be much change for a few years yet!

Rixxy,

Is an "off plan flipper" a dolphin that may never materialise!!!???.

Sorry,seriously i know what you are saying.

Georgia

Actually that does conjure up a thought!!!

Gosh its busy today - I hate mondays! And I hate secretarys off with flu! And I hate....being inside when its sooooooooooo nice out there!!!!  

Hi Rixxy,

I have new staff,which is brilliant!!!!!!!!!!!!!!!

I have had quite a good monday for a change!!!!!!!!!!

And i have been in the UK for 4 days so staring at the sun through the window with the air con on does not seem that bad.

OOOOOOOOOOOOOOOh it's good to be back.

Hi Rixxy,

I have new staff,which is brilliant!!!!!!!!!!!!!!!

I have had quite a good monday for a change!!!!!!!!!!

And i have been in the UK for 4 days so staring at the sun through the window with the air con on does not seem that bad.

OOOOOOOOOOOOOOOh it's good to be back.

But be selective, buying in the right locations are always medium to long term a good buy"   

Great advice!

My baby sister has just had a baby that's the only reason i went.

Beleive me if it wasn't for having family still there it would not worry me if i ever went back again.

Im lucky - I moved out after my parents saying for 11 years before me they were fed up with UK and were going to semi retire and move to Spain

After big row Imoved out - and they followed me!

Still at least they are close and now no reason on this earth to go back to uk - specially as I can get Cadburys choccy here!

Congrats on the neice!!