Anyone planning to take advantage of buyer’s market in 2008?

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This topic contains 28 replies, has 15 voices, and was last updated by Profile photo of Anonymous Anonymous 8 years, 11 months ago.

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  • #53563
    Profile photo of Anonymous
    Anonymous
    Participant

    Is there anyone out there planning to take advantage of the buyer’s market in 2008? If so please get in touch ASAP by PM as I would like to talk to you for an article I am writing.

    Thanks

    Mark

  • #77090
    Profile photo of Anonymous
    Anonymous
    Participant

    No Mark, wouldn’t touch it with a barge pole.

    There’s no such thing as cheap while you can have no confidence that your building licence can be declared invalid, your home demolished (have you seen the news in Vera and Albox this week?) and every corrupt REA/developer/translator/advisor/notary/politician/lawyer is queuing up to get their hand in your pocket.

    Don’t sound jaded do I?

  • #77091
    Profile photo of Anonymous
    Anonymous
    Participant

    I will buy sometime in the future, but not next year. Had a narrow escape last year when nearly reserved a property in Granada; apparently these properties have not even been started and my guess is that they never will, even though this area has been more bouyant than the coast.

    My hunch is to wait about 3 years and then re-assess the situation. I have also decided not to get involved with off-plan, as the risks to my capital are in excess to any potential profit made.

  • #77097
    Profile photo of Anonymous
    Anonymous
    Participant

    We’ve just signed a contract to sell one of our properties and will sit and wait to see what happens…. Today we had a client (vendor) phone and say they want to sell at cost price in order to get rid….

    Things seem to hotting up, it will be very interesting for those with money to invest in the downturn…!

  • #77099
    Profile photo of Anonymous
    Anonymous
    Participant

    @ian_ok wrote:

    We’ve just signed a contract to sell one of our properties and will sit and wait to see what happens…. Today we had a client (vendor) phone and say they want to sell at cost price in order to get rid….

    Things seem to hotting up, it will be very interesting for those with money to invest in the downturn…!

    Very interesting ideed, i have one investor who is currently rasing money in the city to buy up any units at 50% of bank Valuation and the bottom line is that a lot developers would probably take that money. We’ll wait and see if he gets his money. As ive said before a terrible time to sell and a great time to buy and people have to remember that a property price is made up of 3 major things ie cost of land, cost of build & builders profit, so when you can buy a villa for say 550k and you know that even if you were to build it yourself that it would cost the same or more then you know you’ve got a good deal

    Most people buying now that I know are buying and not planning to sell for 3-5 years but they can afford to do that

  • #77100
    Profile photo of Anonymous
    Anonymous
    Participant

    There is, thank goodness, much much more to Spain than illegal ugly new builds on the costas…there are plenty of bargain legal resales to be had “inland”…if I had spare cash that´s what I´d be buying this year…

    According to the Spanish Ministry of Housing (MVIV), just 25% of property purchases by foreigners in Spain in 2006 were new builds i.e. three quarters of foreign buyers chose to buy resales.

  • #77105
    Profile photo of Anonymous
    Anonymous
    Participant

    Feast for the Vultures.

  • #77106
    Profile photo of katy
    katy
    Spectator

    I wouldn’t invest a cent in spain at the moment. I would especially steer clear of anything built during the last 5 or 7 years ago because they are inferior, just built because they were easy to sell. I have rented property in the UK and Paris…no void weeks and doing far better than anything would here even if bought at 40% below the “asking” price!

  • #77112
    Profile photo of Anonymous
    Anonymous
    Participant
    mark wrote:
    Is there anyone out there planning to take advantage of the buyer’s market in 2008? If so please get in touch ASAP by PM as I would like to talk to you for an article I am writing.

    As they say it, it does not matter if you could not buy right at the bottom,
    a 5% increase from the bottom is still a good deal.

    NOw, what is it going to be the bottom and when will the bottom be reached? This I do not know. Unfortunately we might go through a nasty global recession before that…

  • #77117
    Profile photo of Anonymous
    Anonymous
    Participant

    I have had my eye on a property now for eighteen months it started out at 499k has dropped to 469k then 459k and now it is at 420k I was going to put an offer on this summer but I think I will wait and hold out longer.
    I would hate to miss out on this villa as I really love it but at the same time I don’t want to pay more than I need to.
    So maybe winter 2008 or early 2009 I will get my villa.

  • #77122
    Profile photo of katy
    katy
    Spectator

    Why don’t you just try an offer? someone else may have their eye on it too 🙂

  • #77124
    Profile photo of Anonymous
    Anonymous
    Participant

    The property in question has been on the market for a total of 3 years so I’m hoping it will still be there. There was a villa exactly the same but no pool sold recently for 299k The owner wanted a quick sale to go back to UK. I did think about buying that one but it hadn’t the same privacy.
    I would like to add that this would be holiday home for long term I am not buying as an investment and won’t be renting it out either so the lower the price the lower my monthly payments on it as I am going to have to get a mortagage for about half of the selling price I can’t afford to buy outright.
    I would like to get it for around 300k do you think I am being unrealistic?

  • #77125
    Profile photo of Anonymous
    Anonymous
    Participant

    Getting a mortgage seems to be a stumbling block for many at the moment.

  • #77126
    Profile photo of Anonymous
    Anonymous
    Participant

    I can raise the money no problem at home here. I own 2 properties outright at home here, one is worth alot which I live in the other is a small property which I rent out. The monthly payments would not be a problem as I have no other mortgage. Although I will not borrow on the strength of my own home I would not be willing to risk it. You never know what is around the corner

  • #77127
    Profile photo of Anonymous
    Anonymous
    Participant

    Lucky lady. 😀

  • #77133
    Profile photo of Anonymous
    Anonymous
    Participant

    @Claire wrote:

    Getting a mortgage seems to be a stumbling block for many at the moment.

    Not surprising considering the out and out fraud thats been taking place by English Mortgage brokers based here

  • #77134
    Profile photo of Anonymous
    Anonymous
    Participant

    I would go in at 290.000€ and make certain they know that funds are available. Also, set a time limit that your offer will be available for.

  • #77135
    Profile photo of angie
    angie
    Spectator

    I would not touch Spanish property with a bargepole either especially on the messed up Costa del Sol and Costa Blanca.

  • #77136
    Profile photo of Anonymous
    Anonymous
    Participant
    joellie wrote:
    I would like to get it for around 300k do you think I am being unrealistic?

    You can offer now 300K for it. You pay anyway 15% more now due to the week £, as compared to 4 month ago.

  • #77138
    Profile photo of Anonymous
    Anonymous
    Participant

    Joellie,
    By not borrowing sensibily you are planning to hand the financial benefits
    to the TAXMAN.

    If, hardtimes comes the same government will hand you £65 pw. Aster asking all and sundry paper and every obstacle will be placed in your way to not to pay you the £65.

  • #77139
    Profile photo of Anonymous
    Anonymous
    Participant

    “By not borrowing sensibily you are planning to hand the financial benefits
    to the TAXMAN”
    Most sensible advice is that if it is a luxury item that you are buying, be it a holiday home, jewellery, etc., DON’T borrow.
    If you can’t afford it out of you own funds, don’t buy it, work a bit harder and obtain the funds.
    It is different to borrowing to buy your main home, as it is only the minority who can buy without borrowing.

  • #77153
    Profile photo of Inez
    Inez
    Participant

    Joelle – go in at 300k – you can always up the offer, but personally I would advise you to mortgage out here for inheritance tax purposes – unless you are not bothered about that.

    Good luck.

    Mortgages are also harder because banks have had their knuckles severely rapped for being too lax with their checks. Some are even requesting Cirbe searches now!

  • #77156
    Profile photo of Anonymous
    Anonymous
    Participant

    Thanks for all the advice. I am going to spain again in July, I was there in november ’07 so i’ll be able to see what difference in the market if any.
    It will also be interesting to see if the same houses are still on the market and at what prices.
    I have been keeping tabs on prices for the last 18mths in the area I am interested in.
    When I was there in November there was even more houses up for sale than the previous year and hardly any had sold.
    Some had dropped a bit in price but in my opinion alot of people are still asking silly money.
    I’ll give you and example the villa I have discussed has dropped a few times in price but other villa’s the exact same are on the market for 100k more!
    How these people can ask this price is beyond me who valued there houses at this price? Do they not see the exact same property on the same road for 100k less and it is still not selling.
    I will not offer any money until I have been out again in July and see the situation for myself.
    I’m sure I’ll be asking for lots of advice nearer the time, you are all very helpful.

  • #77157
    Profile photo of Anonymous
    Anonymous
    Participant
    joellie wrote:
    Thanks for all the advice. I am going to spain again in July, I was there in november ’07 so i’ll be able to see what difference in the market if any.
    It will also be interesting to see if the same houses are still on the market and at what prices.
    I have been keeping tabs on prices for the last 18mths in the area I am interested in.
    When I was there in November there was even more houses up for sale than the previous year and hardly any had sold.
    Some had dropped a bit in price but in my opinion alot of people are still asking silly money.
    I’ll give you and example the villa I have discussed has dropped a few times in price but other villa’s the exact same are on the market for 100k more!
    How these people can ask this price is beyond me who valued there houses at this price? Do they not see the exact same property on the same road for 100k less and it is still not selling.
    I will not offer any money until I have been out again in July and see the situation for myself.
    I’m sure I’ll be asking for lots of advice nearer the time, you are all very helpful.

    Usually the agents try to keep prices high to protect their commissions. A friend of mine dropped the price of her flat from 185k euros to 170k euros, she lives in UK so asked me to advise an agent she has left it with, they immediately put on 5% I asked the Spanish girl in the office why they could n´t drop their commission from say 5% to 3% as my friend had dropped 15k euros, she looked at me as if I was mad and said it was n´t worth their while to cut commissions ,my reasoning that a sale at 3% is better than no sale at 5% fell on deaf ears.

  • #77159
    Profile photo of Anonymous
    Anonymous
    Participant

    I agree a sale at 3% is better than no sale.
    I’m in business myself and any business is better than none.
    They are not selling any houses at these prices so therefore getting no commission . If somebody decides to lower there house price to get a sale then the agents should also agree to lower there commission.
    If I were an agent in these unsure times I would of course lower my commission to attract more business and stay in business.

  • #77162
    Profile photo of Anonymous
    Anonymous
    Participant

    My husband thinks we should wait until the very last moment to put an offer in but I am frightened that the villa I love will be gone by then.
    He seems to prefer the older properties in the old town that have alot more ground around them where as I prefer the new part as it would need alot less money to keep.
    I am 38 years old and he is 41 but I think he is thinking towards retirement where as I am thinking of the now. If we bought in the new part we could use it straight away and maybe in ten to fifteen years time we could sell and then buy in the old part of town and retire there when we would have enough time to do it up and also look after the extra ground. I know this is something we have to sort out ourselves but it is good to let rip so too speak.
    I think I will push him towards the newer villa in the mean time as we have to grown up sons and two young sons. The newer villa would be more ideal for the younger sons as there is more children for them to play with in a safer environment than the older part of town.
    I am sorry to have gone on a bit but I am thinking out loud so too speak of the pros and cons.
    Also to repy about the mortgage vs buying out right
    we could not afford to buy outright but as I said previously we have no mortgage at home and are both working our own business’s so we can afford the payments on a mortgage no problem and why wait till we our too old. We are not at the advantage to buy outright but we can put a substantial amount down as a dowm payment.
    Of course like anybody we would like to get our holiday home at rock bottom price so the million dollar question is should we go for it summer 2008,winter 2008 or wait until 2009 I have even seen some peple saying wait until 2010 but that seems a bit too long away for my liking.

  • #77163
    Profile photo of Anonymous
    Anonymous
    Participant
    joellie wrote:
    I am 38 years old and he is 41

    Have you travelled enough around the world and then decided that that villa in Spain is the only one in the world you like?

    Maybe Italy, Portugal of France might have another villa you might be interested in.

    My advice: follow this site and other sites, I am sure people like Inez and others will be able to tell when the bottom will be reached (with some error of course, but not bigger than 5% in prices).

  • #77171
    Profile photo of Anonymous
    Anonymous
    Participant

    Ralita
    We have travelled and although France, Portugal etc. are lovely places we have decided on spain for a number of reasons.
    The weather is great almost all year, short cheap flights, people are friendly and we also have other family members who have bought there.
    I know we are only 38 and 41 but we have been married now for 21years
    so I think we know what we both like.
    If we buy now while still youngish 🙂 we hope we can pay it off before we retire and still keep a place at home here.
    I would not want to have too sell my home here to buy in spain as I would always like to be able to come back whenever I wanted.

  • #77175
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    Anonymous
    Participant

    I think it is always wise to keep a bolt hole in your country of origin when buying a retirement home in another country.

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