@Chris McCarthy wrote:
Well good for you, but you are in the minority of people who can afford to to throw money away for a life style choice. With the high prices in Spain it certainly isn’t a good investment and its doesn’t make sense to buy when you can rent.
A tad disingenuous don’t you think – assuming that one person’s choice is them throwing their money away on a lifestyle choice.
I wonder Peterhun, what car do you drive?
Would another person, less fortunate than you owning a lesser value or more ordinary car perhaps believe that you had indeed thrown your own money away on that for a lifestyle choice? Why have car when you can use public transport I wonder?
Is your car a good investment?
Please also don’t simply assume that there is no property that is a potentially good investment in Marbella or Spain right now, there are many potentially excellent investments, and the world doesn’t stop because you say it should, that’s not what makes the world go around.
It is the people with optimism, hope and belief in themselves and their potential that make the world a better place, it is their drive and desire to improve their lot and reward themselves for doing so that makes the world go around, not those who simply say freeze and do nothing, what was the well worn Warren Buffet phrase that has been used here before “Be fearful when others are greedy and be greedy when others are fearful” might not that apply at this or some near point?
Or what else did dear old Warren say… something about not following the sheep, going into a market where everyone is, because by then it is already clearly too late.
Just because a poster says he has made his choice and bought, I don’t think it is fair for you to simply denounce him or her for being an idiot who has thrown their money away.
Again, perhaps you might want to sell your car and take up public transport and cloth yourself in sackcloth and ashes if that is how we are all going to proceed.
I don’t have a car. Never had one either, I passed my motorcycle test twenty years ago and have never passed my car test. I don’t need one so it would have been a very bad investment in time and money, living in London it saved me a large portion of my waking hours travelling by bike rather than a car. When I needed a car I hired a taxi or van. Now, I need a car, and it will be an old Discovery for me.
You will always get someone to buy property for whatever life style needs he/she wants; it does not mean that is a good or wise financial decision.
For a start, why buy in Spain at all? I looked at what was available in Spain and then looked at Krakow in Poland. Here I bought a farm with 2.5 ha, 160m house and a barn in beautiful farm land with a pleasant view. It takes 35minutes to the centre of Krakow and getting there via public transport cost 70pence. The land produces 5000 dollars of wheat per year, the house needs work, but at £35K it puts a two bedroom apartment at 140k euro’s in Spain in rather sharp contrast. Sure Poland’s winters are cold, but short so renting in the Canaries for six weeks a year will be easily financed by the 100K I’ve saved by buying in Poland. Tax? £180 income tax per year for a farmer in Poland and about £60 per year rates.
My choices, and a lifestyle choice that may not suit many others but it emphasises that Spain is by no means the only or best second home option. Its got terrible future growth prospects and foreigners will be milked dry for years to pay for Spains debts.
As for the reference to sheep, yes buying in Spain in the past and future few years will be for the sheep (or ‘lifestyle buyers’ who hare happy to lose money. Ha!).
Smart people, most people who have avoided listening to lying estate agents and their irk will ask the question; what is the upside and downside of Spanish Property investment? Will it (as my Polish Farm as it moves to the Euro) likely increase in value 100%, 200% or decrease by 10, 20%, 30% (like Spain – property prices always come down in unison, do give me the Marbella is special ****)? Can you put your hand on your heart and tell me that an apartment costing FIVE times the UK average wage, in Spain, will increase in value in real terms in future? If not, rent. Its cheaper and more flexible.