Seems A Place In The Sun wasn't such a good idea after all - for those hoping to rent out their apartments to holiday makers - now the market is flooded.

http://travel.timesonline.co.uk/article/0,...1696271,00.html

I have just returned from the south of Spain where my niece works in real estate.

The markets in Andalucia have stalled and there has been a huge amount of speculative building. In the past this was mostly purchased by the British, but work on a lot of these devlopments has been suspended because the buyers have stayed away. There is also a huge quantity of finished housing unsold.

My niece, who obviously knows the market, says that the Spanish property market is heading for a big crash - 40-50% she reckons. We also heard stories about British buyers who bought 'off-plan' last year desperately trying to 'flip' these properties and taking big hits in the process.

My advice would be to steer well clear for at least 3-4 years until the bubble has deflated.

"Spanish property market is heading for a big crash - 40-50%"

Wouldnt be a surprise, would it?
I went to a "Spanish Property Seminar" two years about and was struck
how speculative hype was mascerading as analysis and strategy:
c.f. they were teaching people how they could become millionaires by
pyramding there profits. I could help but ask, "What happens if the market falls?"
People looked at me as if an idiot was speaking, and went on to explain that
prices had been rising steadily for X years, and "all the experts expect a 3-5%
per ennum growth rate."

When I repeated the question, they looked really irritated. I left early.

DrBubb,

Get with the the programme.

The funny thing is if the Spanish market breaks big time it will unleash another cohort of UK exiles to make the break whilst they can - either before the UK drops really significantly or the £ does or both.

I have a friend who has been buying cheap student accom in Coventry by using the equity from one to pay the dep on the next etc etc. Ended up with 3 places all on int only mortgages. With an income of about 30k a year I suggested to him some time ago that int only was a bit risky and that mybe he was over stretching.

Then he decided last year to buy and renovate a place in Slovenia (90k sterling split with another friend) by selling one of the houses. The idea was to use it for holls and rent out the rest of the year. Trouble is the Cov house didn't sell. So he borrows the 45k from ANOTHER friend. One year later Cov house still not sold, so what does he do.....borrows ANOTHER 25k off ANOTHER friend and has just bought ANOTHER place in Slovenia to do up.

I have given up trying to tell him he's making a mistake.

I often listen to him complaining how hard he's "working". By this he means borrowing, sorting new places to buy and then paying builders to renovate (he does not do the work himself).

Lord help him when it unwinds. Don't know if he's received any money for renting the Slovenian places out. His Cov house has now been empty and unrented for over a year.

Meantime I am sitting on a 100k deposit and growing.

Dubb, you and I seem to be in total allignment with all your posts....kepp em up!

jp.,

it seems these "friends" may be risking more than they know

I had the misfortune of spending some time in Coventry, the market to outside investors may look tempting, ie 3 bed terrance for 100K, trust me the most you'll get on the rental market is £300PCM, thats makes £60K overpriced.

Avoid it like the plague.

If we here beleiving in the crash are all right. My god it is not a crash we are heading for. It is a, well there are no words to describe it..
I thought evting was ok in spain and that it was still good to by in France.

By the way it is fantastic new for the French they also wait for their buble to burst if buyers of summer holidays house are putting back on the market their house sure it is going to make really nasty.

Did you write that pi$$ed ? or are you 5 ?

Perplexed you are a rude and ignorant twt.

TWT welcome to the forum, your post is most welcome.

Anybody who can give us experiences of HP movements abroad are most welcome here.

Yeah, welcome to the forum TWT!

I just admit I found your post a little difficult to read smoothly and I laughed at the "pi$$ed" comment!

JP.

Perplexed has worked out that no one is taking he/she seriously,

hence the descent into outright rudeness

Sounds to me that maybe English is not their first language - so you make allowances. How many other languages do you speak well enough to enter discussions in a forum?

I have mentioned on other threads that you are a w@nker - stop proving me right over and over again.

Hello to all,

True, English is not my native language (well I think it is obvious now ).
Thanks for your understanding.

However I recon I should and can do better: I need to write in English on a regular base for my publications (I work in research), it is not easy and it takes me time. I try to progress.
I have not been careful at all in my message, sorry about it.

Anyway if anything good comes out of it, it is the confirmation of what kind of person Perplexed is... just rude and not constructive...

Perplexed, to answer your question, it is no, I am neither a 5 nor pi**ed. I let you know that the bad writing was also very much due to the HPC excitement (it makes me a bit euphoric those days).

Sooner or later it will crash ! Perplexed, like me in English you have to learn a few things

Thanks to all others for the welcome.

TWT

twt

There is nothing wrong with your english at all, you were just introduced to this forums village idiot( dont all forums have one)


infact your written word is better than mines.im a very lazy writer, and just type whatever.if needed i can do a very nice letter, but this is a forum as long as its understood thats good enough, and in no way reflects any intelligence or education.

its not a cv or buisness plan or a phd paper ffs its a forum perplex



welcome twt

lot of good people on here, and smart too, there not doom mongers they just understand which way the wind blows and when things bottom out will be the first to predict another boom.

its not about where you wish the market to be its more where you think its going, thats the thing most bulls like perplex cant understand, there to vested to think rationally.They dont understand the diffrence between what you want to happen and what is going to happen are two diffrent things.


heck i want scotland to win the world cup but i aint gonna stick my money on it , but then if i had stuck 300k down at the bookies on this outcome i would be screaming that they will win to all that will listen.

thats the crux of the problem with some bulls they just havent figured yet that the gamble they rook is not gonna pay off anymore.Well they havent admitted it yet to themselves.

Anecdotal.

Just spent the w/e with the rellies.

Went to a 'baby shower' with the GF, all her friends have popped now.

One of them lives in s. spain with her hubby (but came back for a short break). She's a sweet kid, but hardy Einstinian in her grasp of *anything*, including economics.

To cut a long story short, her and hubby went off to Spain 3 years ago, on the back of a house they sold in the UK. They bought a big plot of land and built a little house on it. Hubby now works by knocking out small houses etc.

I asked her how the market was, and the reply was 'Fine. Its nowhere near as bad as people in the UK seem to imagine'.

So I asked her what hubby was up to. 'He just finished a duplex - 800sqft, 2 beds, nice view of the coast. Been on the market for about 6 months now'.

Sold yet? 'No... no interest of any kind'

6 months and counting, in a post-peak here-comes-the-crash market. 'But its all right, cos it will sell soon'. Even though the big boys have put a half-finished massive developemnt right in front of the 'nice sea view'.

Like yeah. 190,000 euros for a 2 bed duplex. ohhhhh dear.

And incidentally, another of the girls (a HUGELY fat ginger haired walking fridge with a baby sized to match) said that she and her on-off-on boyfriend are gong to buy because 'the market has started going up again, and it always goes up in the long term and this is a good time to buy'.

For once, I didnt even bother commenting - dole chavs anyway - how the hell will they find 250 big ones for an average house in the area???

Hear that? POP.

Freind bought 2 2 years ago and turned then a few months later for 80000 euro profit each. Easy money. He's not educated but he turns easy profits like this all the time. He's currently investigating Cape Verde.

CIUW, what you describe is still happening across far too many parties. We think sentiment is changing, but as described before its more of an aircraft carrier turning than one of its F15's.

Another simily maybe that HPC members have spotted a distant meteor hurtling toward the Earth, and to anyone who can't move to Mars, they face a nasty jolt.

The evidence is quite clear through our telescopes, but the rest of population keeping looking skyward with a naked eye and not seeing a damn thing.

We are being called doom mongers.

Its true that a few more people have looked down the lens, but continue to ask if it isn't just a spot of mud obscuring our view.

I wouldnt sweat it Gav.

in a month (maybe 2) the figs will be YOY negative.

Argue with THAT, vi's....!

Welcome TWT, take no notice of Perplexed. In any event, writing is an abstract petty activity.

This is not a p1ss - take, but I cant resist telling u all the name of a Turkish owned internet cafe thats opened round the corner, its called "Time To Internet'".

Ah , Dogbollx. He of the tiny mind and smaller heart.

Writing in all its many forms is the very basis of our extelligence. Although you, as someone who prefers his reading material 'illustrated', obviously don't understand why that might be important.

And what exactly do you think is 'funny' about a cafe called 'time to internet'?

How about 'Time To Raise A Rentboy's Staff Of Life'?

Or... 'Time To pump and dump my sad little portfolio of flats above kebab shops to helpless newbies by lying cheating and stealing'?

Your place in hell is reserved, Dogbreath. Don't take to long.

Perplexed,

Lots of HPC'ers have ganged up on quite a few bulls over the time I've been frequenting the site, and in my view, many bulls have been unnesseccarily harrassed into submission.

However in your case, I'd really wish you'd get the message and P**S off, because your posts are uninformative, and abusive!

I'm here on the Costa Blanca and it is fact - have friends who rent villas and they are renting far less weeks for less money. It's ok if they bought when prices were so much lower - they can't go wrong but the people who bought to let quite recently must be feeling the pain unless they put a lot down.

More and more villas going up but I am seeing a number of sold signs so it isn't all doom and gloom quite yet.

A very hot (and loving it)
Mark