- September 16, 2008 at 9:24 am #54320
By something I mean a good apartment in a good location of Spanish Costas (preferable Costa del Sol or Costa Tropical or around Sierra Nevada) with decent facilities.
Will it be in 2009 or later?
- September 16, 2008 at 3:31 pm #86212
- September 16, 2008 at 3:35 pm #86213
Hudson, in Almeria I expect to get a (legally built) villa for 50K Euros after the crash finishes.
But remember, I said HARD cash. 50K Euros counted on the table. They might get to
63K in 4 years with the 6% ISA account…
- September 16, 2008 at 3:55 pm #86214
exactly, dream on!! then again, there is an area near roquetas del mar called dos cientas casas (30,000 illegal immigrants of which 10,000 are black north african – try there!!
- September 16, 2008 at 4:09 pm #86215
OK, so there are at least two person in denial on this site.
Let’s talk again in 2010, I shall give you a list of good properties for under 50K at that time.
Till then, hold your prices high so nobody bothers you with an offer.
- September 16, 2008 at 4:12 pm #86216
You can get dumps anywhere but you won’t get a decent well-built villa in a good location for €50,000. I don’t mean to be rude and maybe our interpretation of decent property and location, etc will differ.. but that aside it just isn’t gonna happen. If the property market was to crash to that degree the knock-on economic effects would be so bad that all of us would find our savings gone!
- September 16, 2008 at 4:15 pm #86217
BTW – I have just bought my Spanish dream home & have no intention to sell. I expect to take a hit on my London home but am still hopeful it will bag me more than £50,000 🙄
- September 16, 2008 at 4:24 pm #86218
We sold to rent in August 2007 and moved to a much bigger and better located house with a rent as big as the previous mortgage rate. I decided to put the money I save into a deposit for a house in Spain. I have enough time to wait till the prices come down to the amount of money I save.
I expect that in 2010 I shall have enough. If not, 2012 would also be OK.
- September 16, 2008 at 5:37 pm #86219
- September 16, 2008 at 7:34 pm #86220
“but that aside it just isn’t gonna happen. If the property market was to crash to that degree the knock-on economic effects would be so bad that all of us would find our savings gone!”
I think a lot of people do not understand the scale of the global credit/debt/banking crisis that is unfolding before us. Tens of millions will find their saving gone but unfortunately their debts still here. Spain is one of the most vulnerable economies. When we emerge out of the back of this, the property landscape will be very differant, that may be very difficult for people who have not experianced very good properties in very good areas strugling to sell at -50% of their previous highs (as they did in the UK in the early 1990’s, this time it will be much worse in Spain). I have stated before that many villas/appartments will be effectively worthless and by definition many good ones will have vendors only too willing to take circa E60k. When? My guess late 2011/12?
I’m not going anywhere so lets see.
Pablo Silver or Lead?
- September 16, 2008 at 7:38 pm #86221
I’ve got to say that your post has put a smile on my face. 8)
Where do i begin…
First of all you talk about purchasing a well built villa in desirable spanish locations for E50K. Granted you acknowedge that if you received 6% over 3-4 yrs your equity, compounded, would grow to E63K. Fair point.
What confuses me is your lack of descrioption about what you consider a well built to be, nor do you describe the size in sq st or bedrooms or added amenities such as a pool, terrace etc.
Thus even if prices where to collapse 50% from the current day market value, your present day total for purchasing your dream villa in today’s market would be E126k. Hardly a kings ransom… then again if you are after a single bedroom Villa, inland, with no pool in the areas that you prefer then you’ve got a chance… (assuming a 50% drop). So i suppose the point is that it is all realative to each indiviaul buyer.
In todays prices, i would consider a decent Villa (imo 3bed, pool, surrounding land etc) will set you back minimum £300k – upwards to a £1m depending on what your preferences in location and style (modern, traditonal etc) are. But this may vary from your own desires.
You say that you sold to rent in August 2007 (gold star) and moved to a much bigger and better located house with a rent as big as the previous mortgage rate.
So, you sold up and moved to a better location/house, albeit you are paying your landlords mortage instead of your own. Given that you are willing to wait around until 2012 i can only image that the landlord will be rubbing his hands at the thought of you paying off his mortage over the next 4 years.
Anyway, you mention that you decided to put the money you save into a deposit for a house in Spain. But how are you saving anything when you say that the rent was as ‘big as the previous mortage rate’? Maybe i misunderstand? What i gather is in fact you are spending money on rent rather than paying off a mortage, albeit in a better house. Granted you are guarded against any current property price falls through lack of owenership at this time. But do the sums again. 4 yrs paying rent which means you’re paying off nothing of your own debt – just someone elses. And as your rent = previous mortage you are not making any additional savings.
Maybe i’ve missed something – but i think that you are readind too much into the current property crisis.
Always remember the old phrase – location, location, location.
If your Villa is in a desirable location there will always be demand. So whilst prices will certainly drop over the coming years… the declines that are required to turn a £500k dream Villa (av. price) in to £63K are a tad over estimated imo. That’s almost a 85% drop in prices!! Are you serious about this?
But then again – you know as much as everyone else. We are all guessing. But good luck with the villa search!
- September 16, 2008 at 8:08 pm #86222
You write a lot of sense. Also lets not forget at the end of the day the property first and foremost should be a home – then over time if ur lucky maybe an asset. This is my philosophy.
- September 16, 2008 at 8:47 pm #86223
Let’s not get carried away, Hudson – considering properties as a home – whatever next? 😆
This is one of the main issues that affects this forum (and many others connected with Spanish property) – too many people have bought property in the last 5 years as investments, expecting some degree of profit.
If all of those that have bought new build disasters had done the same research as when buying their “home” many would not have encountered the same issues as they currently face.
I have people calling me who have bought a property who don’t know the address or even the village name that they’ve bought in!
As with all investments, there is a chance that they will fall – only time will tell where it stops.
- September 16, 2008 at 9:15 pm #86224
It’s hardly worth posting a reply to someone who thinks 50k after 2 years @6% turns into 63k !!!
And selling in 2007 and then renting a much bigger and better located property costs less than his previous mortgage.
I don’t think maths is his strong point!!!
(50k after 2 years @6% is 56k)
(Give or take a bit, at today’s rates the rent on a property is approximately the same as the interest payable on the property:- mortgaged @100%, maybe you haven’t appreciated you are paying capital off your loan!! Otherwise I would like to know which mythical part of the UK, the laws of economics do not apply)
- September 16, 2008 at 10:18 pm #86225
- September 16, 2008 at 11:13 pm #86226
Why do you want to put your money into a bank when they are all going bust? Surely it’s much better to own some bricks and mortar. At least you’ve got something for your money, whereas money in the bank is there one day and gone the next!!!
Also, 50K at 6% = 56.13K over 2 years, but, oh dear, the tax man wants a cut of the 6.13 profit. so you will probably end up with 54.09K.
It will probably buy you a caravan. 😕
- September 17, 2008 at 11:52 am #86234
Marcoloco10, I am not sure what you are talking about. I shall give some cold mathematical facts, maybe they help.
I needed to move because my kids start school and I wanted them to go to the best schools in the area.
The house that I sold was £150K. The rental in that area is about £700/month.
The house I rent was on the market for £250K. The rent I pay is £750/month.
The landlord could not get more that this 3% return so he is hardly rubbing his hands…
So I am simply happy to take advantage of the glut of rental properties.
I could have borrowed an extra £100K and I would have paid about £666/month extra (at a good 6.25% mortgage rate).
In 4 years you pay about £13K out of the principal.
By renting instead of paying I save £666- (£750 – £700) = £616/month.
In 4 years I shall save about £30K.
So I shall be better of by £17000.
Besides, the £100K price difference of 2007 is now a £85K difference so I gained another
£15K by renting instead of buying.
I expect the difference to be about £65K in about 3 year from now.
About the Spanish property. I expect 50K-60K Euros to get me a 1 bedroom apartment close to sea or Sierra Nevada, well built and in a good area. I would want to pay as little community fees as possible so do not expect big pools, etc. I would pay a 50% more fir a 2 bedroom apartment.
The 50K Euros for a villa was an exageration, sorry about that. I would pay about 150K Euros for a 2bed, pool, surrounding land etc. I can but it now in Polaris World (Sabina or whatever the name) but I am not interested in that region of Murcia as I do not like either
Mar Menor or La Manga Strip.
Anyway, it was a pleasure reading your message.
- September 17, 2008 at 11:59 am #86235
Sorry jp1, I meant 4 years.
Thank you for pointing out.
About renting a much bigger and better located property, see the other message.
The difference in cost to buy was £100K. The difference in rent is £50/month.
Even for a 25 year interest only £100K mortgage, you pay £520/month (at a good mortgage rate of 6.25%). If you want to pay capital off your loand, you pay at least £666/month (at the same good mortgage rate of 6.25%).
I did all the math in the previous posting. If you have any other comment, I would be happy to discuss.
- September 17, 2008 at 12:21 pm #86236
flosmichael— Can you tell me which Sabina you can buy now for 150k euro NOW. if you can i will buy it ,and you will also benifit.
- September 17, 2008 at 12:31 pm #86237
Lindmark, look on Kyero.
There is a site advertising 2 Sabina for 185K Euros.
I know somebody who put an offer around 150K Euros for one of them and has not been refused yet.
If you can get it at around 150K Euros, please send my finder’s fee. 🙂
Don’t get me wrong. I enjoyed staying in Sabina once, but not being a golfer I could not enjoy all La Torre had to offer.
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