Times article

LoadingFavourite

This topic contains 8 replies, has 7 voices, and was last updated by Profile photo of Paul Paul 10 years ago.

  • Author
    Posts
  • #52464
    Profile photo of Anonymous
    Anonymous
    Participant

    Britons thinking of buying a place in the sun should think twice.
    La Caixa, the Spanish saving bank says that Spains decade long housing boom has peaked and is on its way down.

    http://property.timesonline.co.uk/article/0,,14052-2453459,00.html

  • #67491
    Profile photo of Paul
    Paul
    Participant

    👿

    And many of the ‘dodgy’ estate agents have moved the bulk of their operations to places like Bulgaria, Turkey and Cape Verde for example and will be catching the unwary Brits all over again!

  • #67492
    Profile photo of Anonymous
    Anonymous
    Participant

    For some, a Spanish downturn is more anxiously awaited than the Second Coming. Many prophets have been predicting an imminent crash for the past three years and while a downturn is increasingly likely, a crash in prices is less likely.

    Many UK buyers are not primarily motivated by the prospects of overnight profits and are more interested in improving their quality of life by obtaining a a retirement or holiday home. For these buyers, the immediate economic outlook is not crucially important and many will continue to buy.

  • #67493
    Profile photo of Anonymous
    Anonymous
    Participant

    The doom-and-gloom merchants in the UK predicted the same thing here. Didn’t happen though did it?
    All that happened was the over-priced properties wouldn’t shift because everyone started to realise that the agents were more than a little responsible for the hikes in the past.

    stevmk2

  • #67494
    Profile photo of Paul
    Paul
    Participant

    If the predicted crash or large downturn happens in Spain, will their greedy Gov’t who make fortunes out of their often corrupt property industry look to raise other property taxes from foreign homeowners there to make up for their losses?

    The same problems will switch to other countries too!

  • #67496
    Profile photo of mike
    mike
    Participant

    @Rawlins wrote:

    For some, a Spanish downturn is more anxiously awaited than the Second Coming. Many prophets have been predicting an imminent crash for the past three years and while a downturn is increasingly likely, a crash in prices is less likely.

    Personally, I started to question whether the market was sustainable about two years ago. I didn’t expect the whole deck of cards to collapse the next day but I decided that I wouldn’t invest. My main reason was that I was meeting a few investors and on asking them why the market would continue to boom they didn’t really have an argument, simply that it would because it always had. I wouldn’t invest in those circumstances.

    @Rawlins wrote:

    Many UK buyers are not primarily motivated by the prospects of overnight profits and are more interested in improving their quality of life by obtaining a a retirement or holiday home. For these buyers, the immediate economic outlook is not crucially important and many will continue to buy

    I agree. However, in the US every state is now showing reductions in property prices. That’s important because many Americans have been releasing the equity in their property to fund their consumption and with no further increase in property prices then consumption must slow or wages increase sufficiently to take up the slack. The American economy is the main driver of the world economy and if it falters then it will impact the world. I hope that those who are buying to improve their quality of live are not relying on future earnings which might not be as reliable as they thought once we enter a recession.

  • #67500
    Profile photo of katy
    katy
    Spectator

    All the off-plan market was never on solid ground, prices over the last few years have only been increasing because the developers have increased the prices. Its just on paper because no-one can sell them at these prices. Not just in spain either all the other places have seen a downturn. Whatever the agents may say the cheap properties will always remain cheap. If I were to be investing I would go for the commercial property, probably UK or Paris.

  • #67511
    Profile photo of Anonymous
    Anonymous
    Participant

    All i can say is that here on the Costa Daurada and its hinterlands it is business as usual. The building boom in L’ampolla, Hospitalet and Sant Carlos de la Rapita continues just the same as in Mora d’Ebre, Mora la Nova et al.
    Okay, the dodgy properties don’t shift the same as they did before which can only be a good thing. But there are still people coming over from the UK and just buy. Also, there are a lot of Spanish people from Barcelona and Madrid buying here as the weather is much better than on the Costa Brava and the prices are still that little bit lower than up North. The landgrab on the Costa Blanca has also shifted interest to the Costa Daurada. Two of the trustworthy estate agents we know here are so busy, they hardly find the time to return our phone calls or go and view new property to take onto their books…….

  • #67525
    Profile photo of Paul
    Paul
    Participant

    I agree with Katy that most quoted price rises on the Costas are on paper and hardly achievable.

    The usual suspect agents will tell clients their property has increased off-plan during construction, but try and achieve that is nigh on impossible. They might list it for more money but that ‘extra’ is only their commission anyway, the client doesn’t get it. The agent scores twice with their commissions even if they list the property for less money.

    Same old scams now being perpetrated by same agents in other ’emerging’ markets. BUYERS BEWARE!!!!!

You must be logged in to reply to this topic.