[Nautorius]

Two recent pieces of news are in my opinion, very worrying for the spanish land/home owners. The first is the recent spanish economic contraction of 15.1% in November compared to 2007 and the German Unemployment up for the first time in 3 years.

Together with the UK problems this must have seriously dented demand to the level where holiday homes have a negative demand. Then add in the lack of credit and cash buyers keeping out of the market and the 100,000's of new holiday homes built but not sold this is dire! Also I believe a lot of people are heading back to UK leaving even less demand.

Any latest news from those on the ground in relation to Sales, Prices and Rents? Moving to the Gib/CDS area in a few weeks so I have an interest!

Cheers

N.

[markinspain]

Nautorius, on Jan 9 2009, 11:50 AM, said:

Two recent pieces of news are in my opinion, very worrying for the spanish land/home owners. The first is the recent spanish economic contraction of 15.1% in November compared to 2007 and the German Unemployment up for the first time in 3 years.

Together with the UK problems this must have seriously dented demand to the level where holiday homes have a negative demand. Then add in the lack of credit and cash buyers keeping out of the market and the 100,000's of new holiday homes built but not sold this is dire! Also I believe a lot of people are heading back to UK leaving even less demand.

Any latest news from those on the ground in relation to Sales, Prices and Rents? Moving to the Gib/CDS area in a few weeks so I have an interest!

Cheers

N.

Pretty comprehensive info and links here...........

http://www.spaineconomy.blogspot.com/

[Nautorius]

markinspain, on Jan 9 2009, 11:00 AM, said:

Pretty comprehensive info and links here...........

http://www.spaineconomy.blogspot.com/

Thank you for that. I am getting quite worried about what I will find. Just got offered a new build furnished 3 bed terraced at euro 400 month to rent and all units and landscaping/pools finished. It is starting to look apocolyptical. I wanted a slow down to get reasonable accom...not a total collapse. I would like some neighbours/freinds to have a beer with....mind you looks like there may be no bars left open!

Shocking....

N.

[markinspain]

Nautorius, on Jan 10 2009, 06:22 PM, said:

Thank you for that. I am getting quite worried about what I will find. Just got offered a new build furnished 3 bed terraced at euro 400 month to rent and all units and landscaping/pools finished. It is starting to look apocolyptical. I wanted a slow down to get reasonable accom...not a total collapse. I would like some neighbours/freinds to have a beer with....mind you looks like there may be no bars left open!

Shocking....

N.

I would avoid new builds if I were you as you can't be sure all services are connected, have been paid for and will continue to be paid for and work for the foreseeable future. Also, don't get somewhere too isolated - you have to make sure you find civilisation quickly if the car breaks down.

Another piece of advice is to be very careful who you make friends with. I have learnt from experience it is better not to give too much away as it can be used against you. You have been warned!

[ajay]

markinspain, on Jan 10 2009, 08:26 PM, said:

I would avoid new builds if I were you as you can't be sure all services are connected, have been paid for and will continue to be paid for and work for the foreseeable future. Also, don't get somewhere too isolated - you have to make sure you find civilisation quickly if the car breaks down.

Another piece of advice is to be very careful who you make friends with. I have learnt from experience it is better not to give too much away as it can be used against you. You have been warned!

Hi mark, what is the job situation for expats like in spain, i read on brit expat forum that we have 45% unemployment in spain.

[markinspain]

ajay, on Jan 10 2009, 09:37 PM, said:

Hi mark, what is the job situation for expats like in spain, i read on brit expat forum that we have 45% unemployment in spain.

Answered in anecdotals.

[Peter Hun]

Nautorius, on Jan 9 2009, 10:50 AM, said:

Two recent pieces of news are in my opinion, very worrying for the spanish land/home owners. The first is the recent spanish economic contraction of 15.1% in November compared to 2007 and the German Unemployment up for the first time in 3 years.

Together with the UK problems this must have seriously dented demand to the level where holiday homes have a negative demand. Then add in the lack of credit and cash buyers keeping out of the market and the 100,000's of new holiday homes built but not sold this is dire! Also I believe a lot of people are heading back to UK leaving even less demand.

Any latest news from those on the ground in relation to Sales, Prices and Rents? Moving to the Gib/CDS area in a few weeks so I have an interest!

Cheers

N.

I've been checking prices for quite some time now, and there is a definite collapse in Euro prices - especially from UK sellers. Spanish agents quote ridiculous prices and apparently you should offer at least 30% below any advertised prices.
The problem is that the Spanish market is basically corrupt from the government downwards. You can't believe any official statistics or trust what Local or National governments have or may do. If they deem you to have underpaid for a property they will charge you for the difference on the assumption you paid cash to avoid tax, Who knows what new tax they will introduce to get more desperatly needed income, but foreigners will definitely be the ones to pay. T

Then there is the whole illegal build issue, lack of planning permission, water, sewage rights etc and scams of the community charge variety.

check out the forums on here
http://www.spanishpr...-property-news/

Price trends and for sale here (seems to be one of the biggest sites)
http://prices.kyero.com/

Basically, don't buy property in Spain to make a profit, it isn't going to happen. Sales fees are too high and there is a million empty flats unsold to compete with future sales.

[Nautorius]

markinspain, on Jan 10 2009, 08:26 PM, said:

I would avoid new builds if I were you as you can't be sure all services are connected, have been paid for and will continue to be paid for and work for the foreseeable future. Also, don't get somewhere too isolated - you have to make sure you find civilisation quickly if the car breaks down.

Another piece of advice is to be very careful who you make friends with. I have learnt from experience it is better not to give too much away as it can be used against you. You have been warned!

Thanks for the advice! Have sorted a short term rental in gib until we understand the market more. I know some guys in duquesa who should help me out. I know the Costa Blanca well as have a house up there (now rented to parents full time) so I am aware of regular pitfalls. Just no knowledge of CDS!!!

[costalot]

You´ll still be able to have a drink but choose where you go carefully as you might be on your own! Too many people at the moment and not enough jobs ...

[Nautorius]

costalot, on Jan 12 2009, 09:15 PM, said:

You´ll still be able to have a drink but choose where you go carefully as you might be on your own! Too many people at the moment and not enough jobs ...

Yes, That is the risk, hence why we are basing ourselves out of Gib for a few months (have job there anyway).

We really do not want to end up living in an empty ghetto......surrounded by leaches!

[costalot]

At least in Gib you won´t have to worry about the poor exchange rate.

And you can visit the CDS whenever you like

[Peter Hun]

There is now 1.6Million unsold properties in Spain, demand was 220,000 units in 2008.

http://www.spaineconomy.blogspot.com/

Links to here http://www.bloomberg...id=akGONZPNY7Wg

Situation is extremely bad.

This post has been edited by Peter Hun: 13 January 2009 - 10:37 PM

[Nautorius]

Peter Hun, on Jan 13 2009, 10:33 PM, said:

There is now 1.6Million unsold properties in Spain, demand was 220,000 units in 2008.

http://www.spaineconomy.blogspot.com/

Links to here http://www.bloomberg...id=akGONZPNY7Wg

Situation is extremely bad.

Thank you for the update. This is not good news for anyone. The spanish dream is disappearing. My Parents are back this weekend from Spain so I will catch up with them about real life....

Cheers

N.

[soldintime]

Nautorius, on Jan 10 2009, 05:22 PM, said:

Thank you for that. I am getting quite worried about what I will find. Just got offered a new build furnished 3 bed terraced at euro 400 month to rent and all units and landscaping/pools finished. It is starting to look apocolyptical. I wanted a slow down to get reasonable accom...not a total collapse. I would like some neighbours/freinds to have a beer with....mind you looks like there may be no bars left open!

Shocking....

N.

Nautorius,

That is very cheap. Can you tell me what area and the specs of the house. I would be interested myself. I can be the neighbour to have a beer with.

Soldintime

[kakamolly]

Hi everyone, sorry if you are experienced investor's but why invest in Property at the start of a world wide recession.

I used to work for a Property investment company and buying abroad is never straight forward.

Spain's economy is basically built on holiday maker’s primary us and other Europeans buying holiday homes and golf trips.

A lot of that will be stopping over the next few years. If you buy a new build you will have a shortfall on your rent and if you buy a used property you’ll probably have the neighbors and mayor on your back.

I'm now investing my money into CFDs going short on the property market which is basically betting the market will fall.

I feel it makes more sense than buying a property at the moment, which is betting on the market going up sometime.

I went to a few seminars first, the main ones are CMC, IG, Saxo and Stirlingchase, which were by far the best as they seem to be a smaller outfit. They give you a good insight on what it’s all about.

I hope this helps.

All the best

mrk