June 11, 2009 at 2:07 pm #55052
We are behind on a mortgage ( who isnt ) in Mojacar on a 3 bed ground floor on a front line complex 300 m from beach with 3 pools tennis and our own store room
We have 2 options
1) Rearrange the mortgage adding the arrears on – fixed 400 euros Int Free for 3 years – get a tenant which we think we have for 475 per month
2) Sell ( yes we have a potential buyer ) for 165000 euros and make nothing after fees arrears to cover and everything else but at least we are out of it
They want it to let out as its a lovely complex – the buyer is an estate agent and I think they recognise that this complex has a future
I havent a clue what to do but after all the payments we have made thus far / mortgage /air con /rejas /furniture we would make a huge loss if we sold
I know everyone is desparate to sell but I just want to take a deep breath and get a considered opinion as I dont want to rush in and regret it later as this has all happened over the last couple of days
They are willing to move in until december anyway and look again – will the market sink further or has it levelled out – will it ever recover – I think this buyer thinks so – help !
Thanks so much for reading
June 11, 2009 at 3:34 pm #92574
No one can tell whats happening with the market but it wont recover fast and it has a long long way to get back to the heady highs it has been. If you can hang on then do so, but the prices wont be going up for a few years yet, meaning you still have mortgage and community fees to cover. The problem with tenants is they get into difficulties and leave or dont pay leaving you in a worse way.
So, only you can tell whether to bite the bullet, get rid of it and the stress, or to hang on and hope. Good luck in whatever you decide!
June 12, 2009 at 10:43 am #92591
Take the money, put the losses down to experience and move on with your life.
June 20, 2009 at 1:24 pm #92740
You really have to decide for yourself, as only you know the true situation and the effect it has on you.
My situation was somewhat different, but I sold this year for a total loss of around 90k Euros (having bought in 2004) and this is how I reached this situation.
1) Apartment not used, unfurnised, no ultilities (I have a second holiday home)
2) Renting would be a complete waste of time, as income less costs (water, electricity, damage etc ) would probably make me worse off, as well as an extremely high probablity of the tennant not paying
3) Situation in Spain is only going to get worse, with devaluation of around 20% required to compete with the global economy, this will drag house prices down further.
4) Sold property significantly below market value to sell quickly, because in 2 years I think the price I sold at will be market value!
5) Glad to trade a loss against less stress.
I think one thing is clear though, it will be a long time before prices start rising. I would not expect to see Spain seeing house price inflation for at least 5 years.
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