Re: Re: Let’s hear you guestimates, the Spanish property market.

#98222
peterhun
Participant

I ask myself why I still do it Why I waste my time trying to second guess when timing may be right or wrong. Reading this into that and going round in circles when the reality is the end game.

I can to the same conclusion, I took out a five year personal loan and bought a farm in Poland instead. At 8.8% its not far from what I expect mortgage’s to be at shortly, there is no charge against the property (its unsecured) and I expect it to have significantly increase in value. In five years time Spain maybe – just maybe – worth looking at again. In the meantime I expect to double asset value in (Euro’s) and being a farm it also provides a cash income (plus tax advantages).

Look at what happened in the last UK property crash, five years is being optimistic given the massive over hang of property. You have to look at the fundamentals – where is the money going to come from to support current prices, never mind the significant increases needed to cover the cost of buying? It simply isn’t there, in the UK, Ireland or Spain (and the French are not going to be much interested either). Many other countries have better potential, for instance when Greece gets kicked out of the euro there will probably be an instance devaluation of 40%. Other countries don’t hammer you with taxes and cost to buy. Spain’s attitude is that foreigners are a cash cow, now they have got millions of them stuck there it will be ‘tax tax tax’ in one way or anther.