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Some people are only realizing that life is much harder than they thought:
1)”She and her partner Rod bought it three years ago for £147,000.
A year ago, it went on sale for £195,000.
Today, it is on offer for £143,000 – with all its furniture. “
“Everyone tells you that property in Spain is such a safe investment, but that’s just not true any more. I’ll be grateful if we can just break even.”WOW, they wanted £50K gain after 3 years???????
2) Citing Inez: “I could see how many properties were going up, 70 per cent of those buying were looking to flip on and it was obvious that they weren’t all going to manage to do that.”
70% flippers? WOW, what happened to the sun lovers? All got into flipping business?
3)” Benalmadena – bought for £198,000 and on the market for £143,000. She has also just accepted an offer of £253,000 on a flat valued at £396,000 a year ago.
“I can’t believe I’ve accepted such a low amount,” she says.
“It’s ridiculous. It won’t even cover the mortgage, but I want to get it taken off my hands.”What is so ridiculous about it? Some investments succeed, some investments fail. Ask people holding .com businesses in 2000, did they believe when they lost thousands and thousands?
4) “Everything here has gone wrong in the space of a few months.
“And I fear things will get worse rather than better in the future. Spain is definitely not the sunshine paradise I thought it was.”She thought it was?? Do people really move to another country because they think they like that country???
5) Inez Rix is trying to put a brave face on it: “People will start to come in and scoop up the bargains which will create another peak in three or four years’ time.”
Sorry Inez, I got lost here. Do you believe that in 3-4 years things will fall, will reach the bottom, then will rise and will also touch the peak?
All in 4 years?
http://www.dailymail.co.uk/pages/live/articles/news/worldnews.html?in_article_id=565763&in_page_id=1811&in_a_source= -
Hi Ralita – yes at least 70% of buyers on estates were buying to flip and these were taken from statistics I worked on a few years ago and more recently with some of the developers.
Scary stats but nonetheless many have sold, others have opted to keep and its the ones who are stuck and whose circumstances have changed that have the problems.
These problems arent new and I knew of cases back in 2000 where speculators bought several then couldnt sell on as agents were preferring to sell the off plans!
I wouldnt say I was poutting a brave face on it – nothing sold on the day at auction but Im trying to tie 3 up from after. There wre bids, just not high enough for the sellers.
What I meant was as the prices are dropping on SOME but not all properties, the good stock sells quickly. If its bought more cheaply then it can be rented for a reasonable amount and a desireable property wiill alwyas be wanted. Hence I think – and it is my opinion only – that these good props and a dropped price will become more accessible and known about, thereby creating a mini demand. BUT it will be limited.
Unfortunatley estates in the middle of no where will not really get a look in – unless of course Disney does come to town!
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Inez wrote:Hi Ralita – yes at least 70% of buyers on estates were buying to flip and these were taken from statistics I worked on a few years ago and more recently with some of the developers.
Reading that article, I was thinking about what some people say on this Forum: “most of the people are happy with the purchases in Spain, the whining ones on this forum should be discarded”.
What about rephrasing this: “the people who are on this Forum are among the only ones who would not get burned by buying property at stupid prices in Spain”?
They should read the article in the sheeple oriented Daily Mail and contact specialists like Inez before throwing money out of the window.
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Owner of Direct Auctions in Marbella, Inez Rix set up her company four years ago, anticipating that many owners would come unstuck and be forced to sell their properties at heavily reduced prices.
“It wasn’t rocket science,” says the British mother-of-two, who moved to Spain 13 years ago.
“I could see how many properties were going up, 70 per cent of those buying were looking to flip on and it was obvious that they weren’t all going to manage to do that.
“People who come to us are generally desperate to sell, but in some cases the bank valuations on their homes are less than the outstanding mortgage.”
Inez, you’re famous…………… 😀
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I have read many times about illegal construction and houses being demolished. But if the buyers have gone through a “notario” process, why should they have the burden on their shoulders? I mean, shouldn’t it be the builder, or the “notario”, the ones to pay to the owners?
I am Spanish, and I have never seen anything like that.
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But if they checked into it and it WAS for all intents and purposes legal – why should it be demolished?
The Priors will be compensated, but it will take years for it to go through the courts
Why should they have to do that?
And why should they be paying rates on something illegal? Why have water and electric connected when allegedly its illegal to do so?
No, Im sorry. If they bought legally with a lawyer acting for them and all seemed ok at the time, then it should be legalized and be done with it.
Cant change the rules halfway through!
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I don’t think the priors will be compensated. I think there should be lots of demolitions bearing in mind an illegal block in marbella which has taken the view and light from a legal one, also the ones built on public land which was allocated for schools, parks etc. Only with full compensation paid in full by the Junta, let them collect it from the crooked developers/Mayors.
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Katy 🙂
Agree 100%
Now lets have the properties being made legal or illegal.
Legal? Then lets have a carpet issueing of licences.
Illegal ? Then knock the lot down and the government pick up the bill and issue compensation now for the corruption they have allowed in their country.Let them embargo assets.
Properties that we have editorial where somone paid X and what they are selling for now is normal in any up turn or down turn in any market.
Just could be they paid waaaay over the top in the first place if they loose and pay under the odds when they win.
THATS LIFE
Just Frank 8) -
@Inez wrote:
But if they checked into it and it WAS for all intents and purposes legal – why should it be demolished?
The Priors will be compensated, but it will take years for it to go through the courts
Why should they have to do that?
And why should they be paying rates on something illegal? Why have water and electric connected when allegedly its illegal to do so?
No, Im sorry. If they bought legally with a lawyer acting for them and all seemed ok at the time, then it should be legalized and be done with it.
Cant change the rules halfway through!
But it was not legal! the problem is that the lawyer, the “notario”, … did not realize (or they hide the information). Due diligence was not proper. But this does not change that the house is built on rural land.
When a professional does not do due diligence as he/she is supposed to do, he/she should pay for it. Not the client. But the land is rural, and it should stay like that.
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Farstar –
the main problem in this case was the local planning office did give them a building licence. It was the regional Government who later overturned this.
It’s all the same problem as in the Marbella scandal. Hence the onus should be on the local council (the corrupt officials) and the developer/builder who bribed them, not with the purchaser.
The ‘bribers’ – the developers/builders – seem to be getting away with it in all of this, and now act the innocent.
But yes, with hindsight, a good lawyer should have checked the original PGOU and if the local planning permission went against this – he should have advised his client accordingly.
Am sure this procedure is now being undertaken rigourously by all good lawyers. Local council decisions on planning should be taken with a pinch of salt until all the corruption is sorted out. -
@charlie wrote:
Farstar –
the main problem in this case was the local planning office did give them a building licence. It was the regional Government who later overturned this.
It’s all the same problem as in the Marbella scandal. Hence the onus should be on the local council (the corrupt officials) and the developer/builder who bribed them, not with the purchaser.
The ‘bribers’ – the developers/builders – seem to be getting away with it in all of this, and now act the innocent.
But yes, with hindsight, a good lawyer should have checked the original PGOU and if the local planning permission went against this – he should have advised his client accordingly.
Am sure this procedure is now being undertaken rigourously by all good lawyers. Local council decisions on planning should be taken with a pinch of salt until all the corruption is sorted out.Again, the fault should be on the professional’s shoulders: who is the responsible of making sure everything is legal? (which is equivalent to who is getting paid for that?) This one should be the responsible, and should pay for that.
I do not know if it is the local administration, or the lawyer, or the notario, or whoever. But I am sure the law requires due diligence. It cannot be that it is left on the owner’s shoulder. Otherwise, why should the owner pay the local administration, the lawyer and the notario?
I am sure if all these owners get together, they will be repaid. It is so obvious. The only problem is to fight legally until the end.
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@farstar wrote:
It cannot be that it is left on the owner’s shoulder. Otherwise, why should the owner pay the local administration, the lawyer and the notario?
I totally agree with you. Also remember there is the irony that the regional govenment were happy to collect all the taxes on this ‘illegal build’ – until they decided to overturn the licence and pull the house down.
Hypocracy? Refund these taxes?@farstar wrote:
I am sure if all these owners get together, they will be repaid. It is so obvious. The only problem is to fight legally until the end.
In my view, as I said, the ones who need taking to court are the corrupt Town Hall officials and the developers who bribed them.
They are the ‘conspirators’ in all of this.
But unfortunately trying to take them to (civil?) court would require someone brave…and wealthy. -
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Notice that there may be corruption, but justice is justice. A few days ago, several local policemen were arrested for corruption in Coslada, a Madrid town. Many people in the town knew about the illegal activities, but nobody denounced. Only when somebody did it, everything was discovered.
Maybe it is only needed that somebody makes the first step.
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Farstar, said :
have read many times about illegal construction and houses being demolished. But if the buyers have gone through a “notario” process, why should they have the burden on their shoulders? I mean, shouldn’t it be the builder, or the “notario”, the ones to pay to the owners?I am Spanish, and I have never seen anything like that.
Farstar, I am surprised that you being a Spanish making such a statement. Whislt I agree with you reasoning as it is fair & just. People should be compensated in good time & additional amount for the stress, anxiety.
Spain does not or have never worked in this manner. Indeed when the Councils, Notarios, Lawyers, colegio de abagados, behaves in the manner & take no responsibility, why would they worry to be diligent.
This lack of nobody taking responsibility for their action is Spain has to be revisited, shrugging the shoulder is not the way.
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