[soldintime]

I will soon be talking to some Spanish banks that have loads of unsold property on their books. According to a friend of mine they are now much more flexible to do deals and drop the prices.

If you were in the market for a holiday home in Spain how much are you willing to pay and for what type of property.

[Trampa501]

soldintime, on 18 November 2011 - 10:02 AM, said:

I will soon be talking to some Spanish banks that have loads of unsold property on their books. According to a friend of mine they are now much more flexible to do deals and drop the prices.

If you were in the market for a holiday home in Spain how much are you willing to pay and for what type of property.

You'd have to be more specific about location - it's a big country. Doubt you'd get much of a discount (if any) in Ibiza. Nor in Madrid or Barcelona (although to be fair not everyone would want a holiday home there). Always likely you could rent out property there most of the year - ask any English teacher how keen the market is for rentals.
But in places like Almeria and Murcia - yes, big bargains are possible. But what are you looking for? a sea view? Access to facilities eg shops, bars, banks etc. Or do you need the ability to rent out to holidaymakers? In that case maybe Marbella or Sotogrande are better bets - but the prices will be high.

[soldintime]

Trampa501, on 18 November 2011 - 10:23 AM, said:

You'd have to be more specific about location - it's a big country. Doubt you'd get much of a discount (if any) in Ibiza. Nor in Madrid or Barcelona (although to be fair not everyone would want a holiday home there). Always likely you could rent out property there most of the year - ask any English teacher how keen the market is for rentals.
But in places like Almeria and Murcia - yes, big bargains are possible. But what are you looking for? a sea view? Access to facilities eg shops, bars, banks etc. Or do you need the ability to rent out to holidaymakers? In that case maybe Marbella or Sotogrande are better bets - but the prices will be high.

I am asking people that question. It is probably more targeted to the holiday market. With the glut that is there i do not expect good long term rental prospects. basically home in the sun that you rent out maximum 5-8 weeks a year.

Looks like Santander is trying to offload a chunk of its poperty portfolio - http://www.ft.com/in...l#axzz1e3GlxrgY

Morgan Stanley looks likely to get it at a 60% discount.

[soldintime]

soldintime, on 18 November 2011 - 10:37 AM, said:

I am asking people that question. It is probably more targeted to the holiday market. With the glut that is there i do not expect good long term rental prospects. basically home in the sun that you rent out maximum 5-8 weeks a year.

Looks like Santander is trying to offload a chunk of its poperty portfolio - http://www.ft.com/in...l#axzz1e3GlxrgY

Morgan Stanley looks likely to get it at a 60% discount.

This 60% discount is already based upon a portfolio which had some write downs. This could mean if you bought at peak you look at a 70% loss. Bad if you try to sell.

[The Next Pele]

soldintime, on 18 November 2011 - 10:37 AM, said:

I am asking people that question. It is probably more targeted to the holiday market. With the glut that is there i do not expect good long term rental prospects. basically home in the sun that you rent out maximum 5-8 weeks a year.

Looks like Santander is trying to offload a chunk of its poperty portfolio - http://www.ft.com/in...l#axzz1e3GlxrgY

Morgan Stanley looks likely to get it at a 60% discount.

60% discount from what though ? The figures the banks have in their books are nonsense but left there otherwise the house of cards falls in on itself. Ask yourself if Santander or the other banks will be writing down their retained property values by 60%!

Yes there are some 'bargains' out there but maybe before people jump in they might want to ask why they are a bargain.

As for buying in Spain remember the government's relationship with property. They provide statistics that suggest the market has not fallen too much, tax on property sales at not necessarily what price you buy but what they think the value should be, allow new builds then decide they did not have the required consents, look to fill the gaps in the numbers with other property related wealth taxes etc.

Unless I was offered one in the main cities or was thinking of living there no thanks to a second home on the costas - renting for holiday seems the sensible option for now.

[soldintime]

http://www.bloomberg...ller-banks.html

[Trampa501]

According to this report (in Spanish) 13.2% of residential property in Spain is unoccupied.

Idealista - unoccupied property in Spain

The biggest surprise (or perhaps not) is that Barcelona is the province with the highest number of vacant properties. I suspect it's a bit like Docklands where speculators have flooded in, and are content to leave property unoccupied, in the hope of gains further down the road.

[Trampa501]

Wow! Some bargains starting to appear now in Valencia city. A 3 bed apartment for 35k for example! Obviously it may need a little attention, but I never thought prices would come down so much in a big city there.

35k 3 bed room flat

Almost convinced my better half to migrate when I showed her that (and she doesn't speak a word of Spanish). Rather tempted to take a mortgage on it (the site is quoting 118 Euros a month) and do some English classes to pay the bills.

Main problem in Valencia is the water is foul. You have to buy loads of the stuff to drink and also for coffee. tea etc. Great climate though.

This post has been edited by Trampa501: 06 December 2011 - 02:35 PM

[sesim]

Trampa501, on 06 December 2011 - 02:20 PM, said:

Main problem in Valencia is the water is foul. You have to buy loads of the stuff to drink and also for coffee. tea etc. Great climate though.

Main problem in Spain is that the authorities don't think twice about taking your property off you... ie all the land grab / getting the victims to pay for the destruction and removal of their own properties.

In a SHTF situation (eg. leave EUR/devaluation/civil breakdown), the spanish would just declare that all property rights belonging to non-spanish citizens are null and void / are now the property of the spanish state / you will be forced to sell to the state at cents to the new peseta. Once outside the EU law, they can and will do whatever they want to protect their own citizens. As to be expected.

[Peter Hun]

Trampa501, on 06 December 2011 - 02:20 PM, said:

Main problem in Valencia is the water is foul. You have to buy loads of the stuff to drink and also for coffee. tea etc. Great climate though.

This will become more of a problem in the future, Spain is going to get less and less rain making agriculture impossible and drinking water expensive.

[Trampa501]

Peter Hun, on 07 December 2011 - 10:26 AM, said:

This will become more of a problem in the future, Spain is going to get less and less rain making agriculture impossible and drinking water expensive.

Are you really sure about this? Spain has had far more rainfall in the last few years, compared to the 90s. I'd hate to predict rainfall 2 weeks ahead, never mind 5 years!
Plenty of wet mountainous areas in Spain for the drinking water.

[Jamespaddle29]

The north coast where I am living at the moment Santander area has a lot of rain.
Also, comment about property grab etc in worst case scenarion, Im sorry thats a bit far fetched really isn't it?
Just dont look at Almeria etc.
If a problem like that occured in Spain, it would be Global and owning a house in the UK would be just as unsafe.

I am seeing now on sites like Thinkspain a lot more lower priced properties etc.
More affordable on the north coast now, Extremadura a lot of cheaper places but its a bit out of the way.

One problem is I can forsee is deciding you like a house, transfer your money to Euros to buy then the Euro collapses!

Trampa501, on 07 December 2011 - 11:59 AM, said:

Are you really sure about this? Spain has had far more rainfall in the last few years, compared to the 90s. I'd hate to predict rainfall 2 weeks ahead, never mind 5 years!
Plenty of wet mountainous areas in Spain for the drinking water.

[24gray24]

If it floats, flies or f1cks: rent it.

Do you really want to go to the same place every summer for year upon year? I can't understand it.

[Peter Hun]

Might be an idea to wait until after the Euro collapses

This post has been edited by Peter Hun: 12 December 2011 - 08:03 PM

[Peter Hun]

Trampa501, on 07 December 2011 - 11:59 AM, said:

Are you really sure about this? Spain has had far more rainfall in the last few years, compared to the 90s. I'd hate to predict rainfall 2 weeks ahead, never mind 5 years!
Plenty of wet mountainous areas in Spain for the drinking water.

Global warming predicts severe water shortages for Spain