- March 3, 2013 at 1:43 pm #57314
The 100 billion Euro EU bail out of the banks will only make matters worse because it will make the banks more intransigent and evict people who cannot keep up their mortgage payments because now they can count on financial support and the EU bail out money will only try to maintain the housing bubble that was created during the boom years.
- March 3, 2013 at 4:59 pm #115863
I am receiving e mails from banks agents offering 75% discounts for cash sales. They still look a negative investment because there is no hope of any return sufficient to cover the costs. Perhaps if you have the advantage of time in your lifetime but be prepared for a very long wait. 🙁
There are easier ways to make money.
- March 3, 2013 at 5:31 pm #115865
I would advise investing in a decent spam filter, Logan. And don’t give out your bank details to anyone.
- March 3, 2013 at 6:17 pm #115866
It’s not a negative Rocker. I accept any genuine investment opportunity that comes my way because it allows me to see market forces in play. However I do agree my spam box it littered daily. 🙁
The banks are currently trying to rid themselves of property under 100k value. The remainder go to the SAREB. So for example golf apartments in Valencia/Murcia are selling for around €40k when their original price was €180k. Bargain? Not really.
Any less investment aware punter may well think that was an opportunity. Until you add the purchase costs and maintenance costs. Estimate a maximum 10 year period before any decent risk return can be had, and annual costs of at least €5k to have them standing empty, then reduce that estimated return with a minimum 16% capital gains tax.
What profit is left in a market that stagnant and likely to remain so? The answer is very little or the banks would do the same. I realise I’m a professional speculator and their principal intention is to off load these properties to foreign holiday home buyers but really in truth it’s the same result. Except you have a place in the sun to use if you want it. 🙄
- March 3, 2013 at 7:30 pm #115871
I’ve been advising people for some five years not to buy in Spain at this time. It’s a falling market and the evidence is all around. And that’s without the other dangers of illegality and corruption coming at you from all angles. And worthless bank guarantees as well as failed banks. The whole Spanish property market is an unholy mess.
The Sareb angle has now hung the sword of Damocles over all of us in any way involved in the market, even the holiday home owner paying a heavy price for his few weeks in the sunshine every year. A timeshare would have made more sense.
But still they come, the lure of the sun, sea and sand is just too strong.
I had a short break back in the UK recently, for the usual family reasons, I enjoyed the familiarity and greenness of England, but was still glad to land back in Spain. Once it gets you, you don’t want to leave.
- March 3, 2013 at 8:26 pm #115872
Timeshare. I remember that, gangsters selling an idea which was as daft as holiday homes. Then it was the high cost of maintenance charges which eventually did for it.
The same is happening now for holiday homes. People wake up eventually.
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