Hi all.

My mother owns a property in Spain which has been on the market for some time now. It is not getting any interest, nor selling. She will basically lose out regardless on the value it is up for but she just wants it of her life.

What would happen if she were to walk away from it, let it get repossesed? Because she cannot afford the monthly mortgage on it and it is currently bringing her finances down here in the UK.

Would getting it repossesed effect her in the UK? any advice would be greatly appreciated, we are all very distressed and cannot wait for it to be gone.

thanks.
Nick.

Nick,

Can you give a bit more information? For example where is the property, what type of property is it, what percentage is on the mortgage, and which bank is the mortgage with etc.

Hilarious - fantastic post Mark!

Maybe Brian should show them this one too:

http://www.youtube.com/watch?v=-Zxqz7dBj0c...feature=related

Perhaps the best time to buy??? Who for Brian, you the agent?

Yes, disgusting isn´t it? It's a real shame that greed has destroyed parts of the country in such a way - sadly there are pockets like this everywhere in Spain.

I still can't get my head round why agents want to try and flog their **** on a site like this - absolutely no integrity. I could understand it at 'letsconanotherstupidexpatoutoftheirretirementsavings.com' but here? Asking for trouble!

It reminds me of the old joke someone told me before I came.

Mark, aren't you worried about all the sharks on the Costa del Sol?

No, I'll be fine as long as I stay in the water!

I don't understand why agents would post on here either - but Brian Rowland posts on numerous boards touting for business, hiding behind the respectability of being a "chartered surveyor" while peddling his "best buys anywhere in Spain".

The man beggars belief.

Further thoughts after reading Times today about the growth in USA economy and how it will affect us....possibly EU will make a dash for growth to match them!!!.....reduce interest rates!!!

Dec and Jan are the slowest sale months in Spain and in 2008 this may extend in to Feb so anyone looking for a 'new life style purchase' it is a good time to have a look . make an offer and see how you get on....extras with new builds and a good price with re sales!!

There are bargains to be had in Spain. My neighbour just sold his villa in Denia for 50% less than he paid for it in 2004. He decided that it was best to cut and run. Not a bad investment for somebody.

Whereabouts in Denia and how much did he sell it for? And why the fire sale??

The market is stagnant in Denia with some reductions, but 50% loss to cut and run????

PS If he bought in 2004 he probably paid too much for it anyway.

Well one reason could be Denia faces the wrong way - northeast? Why would anyone buy a villa facing this direction. South or west facing is where it's at 'man'

Don't know much about the details. He seemed pleased to be rid of it for some reason. The pics looked nice. Wished I had gone and looked at it myself.

If you had been on other boards other than "Spanish Property to drop" boards then you would have noticed that Daftboy is a wind up merchant. He just makes things up and this is clearly no different.

Costa Blanca is dropping but prices are on average 5-10% less than they were in 2006.

Personally I dont agree that this is the right time to buy in Spain. I have been trying to buy for the past 4 months now and have had very little luck. I have been outbid or too slow on about 12 properties. Anything in the nice areas is getting snapped up almost immediately.

Could you give us 1 or 2 examples of prices for areas you were interested?

Which are nice areas in Spain?

Why on earth would I make things up ? Give me an example. You must have a VI in Spain. You must be the only person on the face of the earth who is continually getting gazumped in Spain. Property getting snapped up immediately ? Properties in most areas of Spain are dropping like a stone. You have just got to be a EA dealing in overseas property.

Hi again

Apologies for the delay in responding, I have been busy all weekend trying to help sort out the mess my mother is in with it all.

OK basically if you can have patience with me i will explain the situation:-

My mother and father, sister and her husband + 2 kids , my cousin and her husband + 2 kids all get on great and decided to move to Spain to live and work 2 years ago. They loved Nerja (Costa del sol) and together found an ideal place, it contained 3 villas, and a guesthouse.

It is situated on a mountain from Torrox coast towards Competa, and contains 2,000 sq metres of land. the 3 properties are seperately owned and all contain there own land amount. So all 3 families have there own escitura for there property, however they share the same entrance but still keeping there privacy.

My sister bought the one bed villa
My cousin bought the other one bed villa
My mother bought a 2 bed villa, with detached studio on her same land, has sauna, jacuzzi and spent aload of money laying out a further terrace.

Anyway I will not get into everything as I am not trying to sell it (well i am! as it is urgent) but basically, within the move, straight after the sale my father got cancer, since then he died and the dream of them all moving NEVER happened and so they have all been left with properties they spend money on per month for basically nothing, it is a constant outgoing and expense. My mother needs it sold, they cannot maintain them now as they are not living there.

Renting seems stale and hard for the prperties. So we have it up for sale with alot of agents at the moment

What would happen if they were to walk away from the properties??

Altogether it was purchased for 680,00 euro.

My mom has hers up for 320 euro now
and the other 2 for 150 euro each.

go visit : www.fincajacaranda.co.uk

I created this site for the properties recently, for the agents to get access to location and images and a PDF doc about properties.

This is already at a loss and may need to drop again, so i am thinking well if they wont make much then what is the consequences of walking?? can anybody help. It is difficult, my dad was always on the ball for this stuff and would have a plan, my mom dosent know what she is doing and i am just starting to understand!

Thanks
Nick

Hi Nick,

I´ve looked through all your information and I´m assuming that everything is genuine and above board so I am happy to give my opinion from my experiences here.

Firstly, I´d better make it clear that I´m not an agent, I have no interest in making any financial gain from you or any advice that I may give and I certainly don´t want to buy it myself. Besides, I´ve got enough problems trying to get rid of a flat that I no longer want!

Right then. My first observation is concerning the location. While for me it´s a little isolated, it would concern me about having all that spare undeveloped land around me. Do you know if there are any plans to build a new motorway, other homes, or any other constructions in the area in the near future as this could affect peoples interest?

Secondly, you do have a lot of work to maintain a property of this size and I'm sure you've found out by now that renting property out here is a complete nightmare even if you live elsewhere in Spain. Even if you can find a relatively honest agent you can never be sure that they are completely looking after your interests, so I imagine that given your current situation, renting the property out is not an option.

Thirdly, from the pictures, I would imagine it would be difficult to sell them separately due to people requiring their own access/privacy. You've also mentioned the prices of the property, but you don't mention how much is your family money and how much is borrowed. While I don't expect you to put too many financial details on an internet forum, the percentage you have invested may influence your decision whether to cut and run. And, is any borrowed money from UK or Spanish institutions as the rules concerning repossession etc could vary significantly?

Finally, do you have a good English speaking lawyer here? Have you spoken to him about your situation and the impact of any decisions you may make?

MIS

I think from recent information I have seen Spain is one of the worst buy to let markets in the World let alone Europe.
High prices of properties, that are coming off thank good ness.
Non resident rental tax high
Not that many if any interest only mortgages in the market, ie. expensive mortgages.
Low rental demand.

People can talk it up, but no buy to let in Spain is a real dog market. Then you have running costs, wealth tax etc etc, Really bad BTL market, avoid in my opinion. There are much better deals globally than Spain.

Great place to retire though.

Most buyers are looking for a retirement home , winter home to live part time or holiday home and you are quite right...Spain is a great place to do this....perhaps the best!
And because it is and the population of the northern EU is ageing all the time the demand from this type of purchaser in the long term will increase
Naturally the growth of the EU economy overall dictates the effective demand at any one time but long term anyone buying now will do OK besides enjoying their life in the meantime!!

http://www.rte.ie/business/2008/0117/spain.html

"Half of Spain's estate agencies closed in 2007

Thursday, 17 January 2008 13:10

Half of Spain's estate agencies closed their doors last year amid a sharp downturn in the sector, according to figures from the nation's main estate agents' association API. Of the roughly 80,000 estate agencies that existed at the beginning of 2007, only 40,000 have survived the slump in sales, the figures show. "

BrianR do you really think that a '2nd hand car salesman's' type concept such as 'lifestyle' is really going to stop and reverse the property price crash that is now in full motion in Spain (particularly the Costas), and sort out the situation of vast over-supply of empty unsaleable flats, villas and terrace house that are of very poor quality?
You must be truly desperate to be trying to drum up business on this website.
Have you read the research papers that document the high levels of alcoholism and mental health problems amongst British expats on the Costas? Many turn to drink, become depressed, etc. because they are cut off from the community (don't learn Spanish and/or the local dialect + live on the sides of mountains with no shops or other community facilities), and are cut off from their families and life long friends. Boredom is another major factor in the high incidence of drink and mental health problems. Research also demostrates that expats, particularly the older people, tend to suffer from illness more frequently and for longer due to not accessing health facilities in Spain - this is not due to bad health facilities in Spaiun but rather a reluctance to access the health care available, or indeed lack of knowledge how to - again language is a major factor here. Research also shows that people run into money prolems because of the British pension rules for people living overseas.
In the last 2 to 3 years British expats that have decided to sell up and return to the UK from Spain have found that they cannot do so. Why? Because of the vast over-supply of property in Spain and falling demand and falling prices they are unable to sell - and this is combined with the knowledge that if they do manage to sell the property in Spain they will not be able to afford very much in the way of property in the UK and will see their quality of life take a massive nose-dive.
Yep, the concept of 'lifestyle' will save the day!

A recent article in The Sunday Times (Jan. 20th.) featured the following;

6 bed villa in Javea, reduced from £1.4m to £830K.

4 bed villa near Marbella down from £900K to £620K.

3 bed apartment in Murcia was £240K, now £145K.

What about 2009 or 2010? Prices will be 20%-30% cheaper by then in good location and probably 50% in places you advertise.

http://property.timesonline.co.uk/tol/life...icle3203491.ece

Many members of my family live in Spain (South of Barcelona). Property has been a dinner table topic for the last 6 or 7 years, however, views expressed have really changed of late with everyone noticing a decline of prices. It's not that surprising either given the sheer volume of building which has been going on over the last few years.

The fact is that nobody who I know is expecting the value of Spanish property in that area to increase in the short to medium term. Yes, Spanish property may be a good long term investment, but even if it is, why buy now? Given the inevitable sharp dip which the market is embarking on surely the best policy is to wait a couple of years. Yes, you miss out on use of the property, but the volume of rental properties available means that holiday villas can be rented for very reasonable prices in the meantime.

Yes, you could buy now and make money in 20 years, or you could wait a few years and potentially make a whole lot more money.

Brian, with all due respect, are you unware of the oversupply situation in Spain? Or do you have a vested interest in seeing demand increase?

Nothing but bad news coming out of Espana.....

SPANISH SLOWDOWN DEEPENS, RECESSION FEARED

by Andrew Hay

Spain was hit by a wave of bleak economic news on Tuesday, five weeks before national elections, and economists feared the euro zone’s fourth-largest economy might fall into recession now a housing boom is over.

Spain’s real estate-driven services sector, which powers over 70 percent of the economy, suffered its sharpest ever fall in activity during January, a survey showed.

Consumer confidence also fell to a record low in January as inflation hit a 12-year high, existing house prices fell and unemployment claims rose more sharply than during any month on record, according to Spain’s public credit agency.

Capping bad news for the Socialist government was data showing industrial output suffered its sharpest fall in 5-1/2 years during December as house sector woes spread into the rest of the economy.

Spain’s Ibex blue chip stock index fell around 4 percent as investors cut positions in firms like fashion retailer Inditex and construction company ACS, exposed to weaker consumer spending and private investment.

“At this point the risk of a recession is significant,” said Veronique Riches-Flores at Societe Generale.

“The Spanish situation begins to have increasing influence on the euro zone and the European Central Bank, reinforcing our forecast the ECB will have to ease its policy in coming months.”

ROUGH RIDE AHEAD

Of most concern to economists was a fall in the Purchasing Mangers Index (PMI) for Spanish services to a record low of 44.2 from 51.0 in December, marking the sharpest fall since the survey began in 1999.

“This makes absolutely dreadful reading,” said Chris Williamson, chief economist at NTC Research, adding that financial and consumer services and anything connected with construction and the property market were the worst performers.

“I’m amazed. I’ve never seen anything like this and I would think the economy is in for a very tough ride on the basis of these figures,” said analyst Jose Zarate at 4Cast in London about the fall in the PMI.

The rapid deterioration of Spain’s economy worries European policy makers as it drives around 11 percent of euro zone economic growth and created 40 percent of new jobs in the European Union between 2004 and 2007.

With an election imminent, Socialist Prime Minister Jose Luis Rodriguez Zapatero regularly rejects talk of a crisis and says Spain is protected by a high public sector budget surplus that can be spent if necessary to keep growth above 3 percent.

Economy Secretary David Vegara said he was not worried by the data.

“When the economy was growing at 4.1 percent in June we forecast growth for the following year at a rate a percentage point lower, so we were giving a clear indication of the tendency,” Vegara told reporters.

Private sector economists have cut their growth forecasts towards 2 percent as the economy struggles to offset a slump in construction investment and consumer spending.

The Socialists have a lead of 4-6 percentage points in most opinion polls, but the conservative opposition has now seized on the rapid economic deterioration as its main campaigning point.

Spain’s problems accompany fears of a recession in Italy and slowing growth in Portugal and could pressure the ECB to cut rates to avoid a crisis spreading across southern Europe, said David Brown, chief European economist at Bear Stearns.

“The ECB should be tipping the policy pendulum to easier interest rates a lot sooner than expected,” said Brown.

Spaniards openly talk of a crisis as they pay higher mortgage costs on homes that, according to property website Facilisimo.com, lost one percent of their value last month.

Not all sectors are affected but practically everyone knows someone who is suffering.

“Our sales still haven’t suffered from the crisis, but we’ve seen it hit customers,” said Jesus Lopez Gago of bookshop chain Booksellers, adding that big banks and other firms are cutting staff training.


http://www.chronicle.gi/readarticle.php?id...tar%20Chronicle

Concerns over Spanish government's housing rescue plan

By Ambrose Evans-Pritchard, International Business Editor

Last Updated: 1:43am GMT 05/02/2008


The Spanish government is reportedly considering a rescue package to "refloat" the housing market and slow job losses in the construction sector, raising concerns over investor appetite for the country's sovereign bonds.

Premier Jose Luis Zapatero is eyeing the Public Credit Institute for a €10bn (£7.5bn) credit line to help developers and homeowners weather the squeeze following the partial closure of the capital markets, according to the financial daily Expansion.

The Credit Institute is an arm of the Spanish treasury, used to promote technology and green energy.

The government has also proposed a tax rebate of up to €400 per person, comparable in scale to the new fiscal package proposed by George W Bush in the US.

The bail-out scheme has caused a serious rift in the ruling Socialist party. Finance minister Pedro Solbes has reportedly warned that use of public funds could cause markets to reassess Spain's credit-worthiness, triggering a further rise in spreads between Spanish and German 10-year bonds.

The Zapatero government is holding a series of meetings with key property and construction groups to discuss the scheme, which would reportedly involve loans rather than direct subsidies. However, even this could fall foul of EU state aid rules.

Pedre Perez, head of the Spanish G-14 property trade group, said the reports of a state bail-out were untrue. "We do not reveal who we talk to but we are not asking the government for a rescue. No such thought would cross our minds. Commercial property is still doing magnificently. This can be resolved by market forces."

Bond spreads have already widened from four to 20 basis points since June. BNP Paribas said they may jump to 60 basis points this year as the boom deflates and investors take a closer look at Spain's current account deficit, near 10pc of GDP.

Spreads have risen even further on Italian bonds since the collapse of Romano Prodi's government, settling at 37 basis points yesterday. Investors fear months of political turbulence and backsliding on economic reforms. While the rise in debt costs for the two countries poses no threat to state finances, the spreads are nearing levels not seen since the launch of the euro.

Spain has a better debt profile, but faces a more immediate threat, after unemployment jumped 132,000 in January, the sharpest one-month rise in a decade. Car sales were down 12.7pc.

Jean-Michel Six, Europe economist at Standard & Poor's, said Spain is now clearly in the grip of a severe downturn. "House prices peaked in June and are now falling month on month. The construction sector is 12.6pc of GDP, the highest in Europe. Even so, Spain has a nice fiscal surplus so we don't think there is any threat to its rating unless something really awful happens," he said.

Expansion reported that Mr Zapatero is determined to avoid the collapse of a major developer before the elections on March 9. The property groups Llanera and Ereaga have both suspended debt payments, while the share price of developer Astroc is down 96pc this year.


http://www.telegraph.co.uk/money/main.jhtm.../cnspain105.xml

Property Group International is a leader of buying and selling property Egypt - Italy - Dubai- Portugal - St Lucia - Cyprus - Spain - Bulgaria. For more information regarding property. Please click here: overseas property

more spam please

Hi all.
I'm new to the forum and have been reading through the posts (nothing on the tellingvision). For some reason the posts are generally very polarised. If you say something good about Spain then you are wrong. An agent is a spammer. Otherwise, it's a good time to buy and a great place to retire.

I would imagine that the truth is between these extremes.

For example, nowhere is free of crime, greedy people or bent politicians. Certainly not Spain. Certainly not the UK.
House prices may well drop some or remain about the same for years. There could be a 'crash' as many seem to want (to make houses cheaper, or to punish those richer than themselves?) but this would be politically unexpedient so they (politicians) will do everything to engineer an economic 'soft landing'. Therefore I see the latter scenario as more likely.
Is it a good or bad time to buy? Well either of course, because it depends where and how much you buy for, and why you are buying, and your financial situation. Or for the same reasons and if one is prepared to take a longer term view, one could say more probably neither good or bad. Some people may buy tomorrow and may make a gain one day. But if they have a mortgage that they expect to pay with rental income they may well lose out.
To be conservative I would say do not buy in Spain (but this really applies to buying anything!) unless you can afford to lose the whole investment.
Then you can't go wrong.
I have an apartment in Almeria and am entirely philosophical about the situation. It doesn't really matter to me what its value is - I'm interested of course, hence this forum - but ultimately it makes no difference. If prices fall I say good news for my children; if they rise I say this as well because they get the property when I die.
In the meantime: more San Miguel and tapas. Buena suerte!

Politicians cannot do anything about prices in Spain, they are now falling like a rock. Cobined with the very low Pound/Euro rate, it is financial suicide to purchase as a Brit in Spain in 2008.

There are tens of thousands of rental properties.

I am not sure where you live in Almeria , but if it is between Vera and Mojacar then you really are unlucky as that area is one of the ugliest one can imagine and prices will go down by 80% in the next few years.

Living in a Spanish area on the south side of the Sierra Gador, I would agree entirely. It is also the British Expat triangle so unless you like that type of thing look elsewhere.

True, however I think it has been taken to a fine art in certain parts of the Costas! A unique blend of dodgy developers, dodgy politicians and dodgy government backed policies (ie the land Grab). Result - the southern coast is a complete blight from Malaga to Algeciras... "villas" that are little better than terraced housing, shortage of water supply (well all those well watered golf courses!!).....wouldn't touch Spain with a barge pole!

[I am not sure where you live in Almeria , but if it is between Vera and Mojacar then you really are unlucky as that area is one of the ugliest one can imagine and prices will go down by 80% in the next few years.]
Rondy I shall respond but I am not going to get into a slanging match with you or anyone else. Beauty is in the eye of the beholder and so too is ugliness, but everything looks nicer in the sun. It's also difficult to believe that the Mediterranean Sea is ugly; even Homer only called it wine-dark. But if you think it's ugly then I advise you not to go to any English city centre, the shock could be too great.
After a few years I shall speak to you again and if you are right about the 80% fall I shall offer you a drink, clever chap. That you have written it as fact instead of opinion does you no favours as you are almost certainly going to be wrong. Anybody who deals in figures or percentages are speculating, which is a foolish pastime.

Reference the 'very low Pound/Euro rate', I accept that this will influence demand from the UK but on the other hand doesn't that mean that my euros are now worth more pounds?

Going simply by what has happened in the past, property will go up and go down by various degrees at various times (so what). However, over the long term it has been rising rather faster than inflation.

By the way, I am domiciled in Kent because I don't believe in 'putting all my eggs in one basket'. Happy days.

Mediteranean Sea around Vera-MOjacar was extremely beautiful before Spanish developers decided to destroy the area and built the junk that it is such an eye-sore in that area.

If you want nicer areas go between Aguillas and San Juan, where human beings have not managed yet to wreck the nature.

If you bought in Vera-MOjacar area, then you are really going to lose lots of equity in the near future. But as you said, you do not care so you will be fine.

If you have bought in a brit domintaed over-developed area then I don't have much sympathy, buying into areas that are completely unintegrated, sometimes deliberately so, with the original local communities is a dangerous game.
The coast from Malage to Algeciras has indeed been ruined, but if you keep going, just round the corner there is another world waiting from Tarifa to Cadiz.

Those comments are much more realistic and I wouldn't bother to argue with them. You say that one part of Spain is preferable to another, which of course is is true although also subjective. Some people want a Brit-in-the Sun lifestyle and I think that is their choice. Even Rondy says that equity loss will 'only' be "lots" (in the near future). Rondy, a few questions please: 1. In your opinion, where do you think prices will be in 10 years time, 20 years time? 2. Your opinion of property values seems very set, but why is it that you want everyone to know these opinions? I mean if you have some alruistic reason, for example you're worried about people losing money, then what if you actually are wrong? Finally Rondy, what are your investment tips for the future?

Incidentally, I have some wine investments that did very well indeed last year but I don't remember anyone predicting that particular outcome.

The thing about a crash (or boom) is that eventually there will be one (at least locally); of course nobody knows when it could be. Perhaps a year, fifty years or a hundred years time. Again, there are degrees of crash. In retrospect, some crashes of the past, said to be 'painful' at the time, now look like minor market adjustments.
Now, if I had set up a website called HousePriceRise.com a few years ago would I have been justified? Stay happy.

Rapidly getting trashed just as badly as the other side (sadly).

buy in mallorca , north /east, best value . best investment i have ever made no crime best beaches cheap flights good roads great golf ,you will enjoy your investment.

Spanman please tell me what parts of east Costa de la Luz do you think are being trashed at present?

Conil, Chiclana ( in particular the abomination of Novo Sancti Petri and the desecration of the cliffs at Roche), the plans for Trafalgar northwards are horrendous - the usual hotel golf course complexes Carrying further on from Cadiz Valdelagrana - a mini malaga, hordes of new builds around Puerto de Santa Maria, Rota more high rise flats almost to the beach, the "EL Dorado" complex at Costa Ballena. Don't get me started on inland like Arcos and Jerez De La Frontera.
The master plan is to concrete strip this side of the country as well.

Oh and I forgot to mention the entire area blighted by wind turbines as far as the eye can see.

I can't fault you on your distaste of Novo Sancti Petri but as far as desecration of the cliffs at Roche goes I assume you are referring to the proximity of the properties to the sea? The architecture is hardly offensive is it and the initial plots were sold over 20 years ago so its not exactly new build high rise sprawl? As for Conil I have to take you up on that one, most of the construction is at the back of the original town, a fair amount of which is social housing which is needed, there are no frontline developments in Conil, hasn't been for a good few years and the local council are extending the distance from the sea which urban development is permitted to 200m. They have also protected the land at Castilnovo from development.

Conil is resposable for Sancti Petri and also Roche. If you haven't been there for a while you will now find an obtrusive large hotel built right on top of the first cala. Adjacent to the hotel quite a few new houses out of keeping with the rest of the urbanisation. The remainder of the cliffs have been set aside as protected - the day the sign went up the majority of the trees and bushes were destroyed. When there is money to be made Conil are as bad as the rest of them.

I don't know if we are at cross purposes here, if someone torches their land because the council refuse to authorise development on it there isn't much the council can do about it? Is your gripe with the ayuntamiento or the people of Conil or both? I know the hotel you are talking about.

Sancti Petri belongs to Chiclana and has nothing at all to do with Conil.

Got no gripe with anyone in particular. Just hate to see beautiful places destroyed for profit. The land on the cliffs is public land (Conil's) and I believe it was the council that cleared it (don't mind being wrong). Also fairly sure that the majority of Novo Sancti Petri that has been built in the last three years falls under Conil's jurisdiction.
My original point was that although at the moment De La luz is not too bad the eventual plan is to build it up as badly as the concrete strip on the east coast and they are progressing steadily in that direction.

I agree there will be development but I disagree it will resemble anything like the Costa del Sol. Sancti Petri is 100% Chiclana.

Not worth arguing over. I guess not much going to happen for the next few years anyway.

ok. Lets get down to the nitty-gritty.
Obviously the thing about buying property is to get it when its at the bottom of a cycle, just as selling it should occur at the top. If you only have one property however it really doesn't make any difference if you think about it. If you are getting on the 'ladder' for the first time you do want property at the bottom of the cycle but would be very lucky to time it that cleverly. The over-riding concern would be to get on the ladder. Sell to rent? You're having a laugh. Rental money is gone forever whereas if you can secure a mortgage you are investing in an end product. If you choose not to believe in any of this then lets just say you are in the minority.
People who experience financial suicide in this market do so because they have over-stretched their personal finances i.e. they cannot afford the mortgage repayments. This happens mostly when interest rates rise; this in turn puts downward pressure on house prices.

Excuse me for going back to Almería, as I know a little about this area. Of course you can argue that it has been 'spoilt' as many wanted in. A limit of three stories had been imposed though. You could cite the curse of development - a victim of its own success. And this is ongoing. There is a new road going out of Vera through the marble lands to Granada. Then there is an AVE (HST) link going in to link Murcia with Almería with a station at Veramar (Gracias, Señor Zapatero), although it wont be finished for seven years. These improvements (if you allow the term) incidentally have already been budgeted for with the national SURPLUS. Also the latest rules regarding building homes in the province of Almería, an order known as the POTA originating in the Junta de Andalucía, make for interesting reading (strict limits).
So it looks like following the terrible crash and the slack having been taken up, there could be scope for property price increases in the future.

By the way somebody just rented my apartment for the summer.
Tinto verano or whisky and fanta?

http://www.typicallyspanish.com/news/publi...cle_15830.shtml

Record inflation in Spain for the advance figure for harmonised inflation in March

The increase in oil prices is being blamed for a new increase in the harmonized inflation index in Spain. The advance figure for the year to March from the National Statistics Institute has come in at 4.6% the highest ever seen for the index since it was started to be published in 1997. The harmonised index is the one which compares inflation rates across the European Union.
Reuters report that the increase was not expected with most analysts expecting the index to have remained at 4.4%

The Spanish Economy will increase by only 1.8% this year, according to new official reports. It compares to the current growth rate of 3%.

El Mundo newspaper claims today that the Prime Minister has seen an internal report showing the slow down in the economy this year will be unexpectedly intense.

The indications are that the last quarter of the year could see the largest fall in growth seen in a three month period in Spain since the Olympic Games in 1992, and unemployment is likely to increase to back over 10% by 2009.

The changing economic circumstances will lead the Prime Minister, José Luis Rodríguez Zapatero, to speak about the economy and the Government’s plans during his investiture speech.

Meanwhile the number of real estate companies and builders who have filed for bankruptcy protection in Spain is increasing. The mixture of fewer real estate sales and the banks closing the taps on easy mortgages have combined to complicate the landscape. The first large company to admit problems was Llanera last October, and others such as Habitat, Martinsa-Fadesa or Detinsa have had to refinance their debts. Valencia builder Encoval presented its problems last Friday at a time where the company is building 950 new homes.

Latest figures indicate that more than 60% of the credits awarded by banks and savings banks in Spain are linked to construction and real estate, with the bad debts in such companies increasing by 130% over last year.

Despite all this bad news the 35 companies listed in the Ibex – the main index in Madrid are showing record profits in absolute terms. The average profit increase was 14% last year, reaching 25% in the textile firm Inditex.

Spain is expected to employ 1,500 immigrants in the fishing industry over the next two years. A new training program under the name of Forpex is designed to strengthen the Spanish fishing fleet. The scheme has the support of the Ministries for Foreign Affairs, Employment and Social Affairs, as well as for Agriculture and Fisheries.

A new study from the IESE business school and Navarra university has shown that 95% of pension funds are less profitable that ten year state bonds. The study showed growth in 2007 for the state bonds of 5.76% compared to just 3% for individual pension plans.

The price of a gas bombona in Spain, the bottled butane gas used in many parts of the country, is to increase 9% tomorrow, April 1. It will take the price to 14.1 € compared to the current price of 12.94 €.

And finally,
Good news for the Spanish wine industry with a record for exports both by volume and value last year. The 15 million hectolitre barrier was broken with a 6.6% increase over the year to reach a value of 1.833 billion € - up 12.4%.

I went to Spain 5 years ago looking to invest, back then prices were alot more reasonable than what they are now, I did actualy put down an offer on a 3 bed villa which I thought would make a nice holiday re-treat for my family and I. The offer was rejected and I really struggled to find a property within my budget that ticked all the boxes. My estate agent in Spain then mentioned that they had an office in Turkey and that for my same budget I could invest in 3 properties! Long story short I went to Turkey, loved it, invested in the 3 properties over two years ago in a small bay (Turunc) in Turkey I have recently sold the last one and I have made a total profit of £150k..!

There are definately deals around if you look hard enough, stay away from large resorts or invest in small villages or bay's close to large towns. Best time to invest is november or March-April and use a good agent, stay away from locals who are trying to sell their uncles house, they are all on comission so use the professional and go for small agents with a UK base, this way you will be able to contact them in the UK and they will be able to give you a close personal service rather than these cattle pushers like MRI or Parador..

I put a deposit down on a futher 4 properties last November have sold 1 already with a £20k profit. As I mentioned before I have mainly invested in Turunc 20k from Marmaris becuase it is easy to spot a deal and much easier to re-sell, the agent I used was a company called LST Real Estate there website: www.londonspanishturkish.com there are a few other agents in the area like 'Homes etc' but I found them to be quite pushy and without experience.

Hope this helps..

This topic is about Spanish properties not about ramping Turkish properties.

Create your own thread if you want to write about Turkey!!!!

The place to invest at the moment in Spain is definitely Vera Playa which is an area close to Mojacar and Garrucha in Almeria. Let me tell you the reasons why this is the case:

1. Zapatero has recently bought a home there. Apparently he has holidayed there for years.
2. The AVE which is the high speed rail network will actually have a station at Vera Playa. This will be the only beach resort to have an AVE (as Lionarm rightly states this is because of Zapatero's influence). This means Madrid will be 2hrs away and Barcelona just under 4 hours. This area of Spain has always been very popular with people from Madrid and the AVE will add to this demand. Think Brighton and London.
3. Restrictions have always been in place to do with the height of buildings and this is currently 3 storeys for residential and 4 for commercial.
4. Vera Playa has 5km of fantastic sandy beach and an EU grant has been recently signed means more than 20million euros will be put aside to protect the beach from erosion and to add a watersports centre/lake at the Villaricos end of the playa. The lake has already been started.
5. A motorway has been recently built between Murcia airport and Vera. This is a toll road but means you can reach Vera playa now within 40 minutes from both Murcia and Almeria airports. Alicante is 1hr 40mins away should you require it.
6. Plans to construct 1000's of holiday homes inland from Vera Playa have recently been squashed (Thanks again Mr Z). Instead plans have been placed with the Junta at Vera to build high grade family homes and improve infrastructure (ie office blocks, shops etc).

Now I have to declare my vested interest. About 7 years ago I bought a house in Vera Playa. I paid cash so no problems there but I had spent years looking for the right location. I lived in the house for 2 years and since then have rented it both long term and short term. Fingers crossed up until now I have only ever had the property empty for a week in the past 7 years.

I find it interesting on here listening to the arguments about Spanish Property in the context of HPC. When somebody in the UK tells me that where they have bought is immune to HPC because it is so desirable I tend to disagree but when it comes to Spain I find that I raise a similar argument.

When somebody approaches me and says "i cant sell my house in Spain" or "Im having a nightmare with land grab etc" or "The area is going to the dogs" I ask one question.....Its not Torrevieja is it?. Surprisingly so far around 18 out of 30 people say "how did you guess". The next question is "Oh, is it somewhere inland then, perhaps looked too good to be true....lots of land etc?" Thats when the other 12 say yes.

In Spain pick a good area, front line if possible and you will NEVER lose. My Uncle bought an apartment in 1993 which was then a small fishing town called Puerto Duquesa. It cost him £35k, he bought it from an English guy who had bought it in 1987 for £10k. At the time my whole family felt it was a bad move and overpriced. In 2000 he came in to bad times and sold it for £110k (managing to clear all his debts)...last year it sold for just shy of 400k euros (£300k). Now I have to say that is crazy money but it is a great apartment which sits right on the harbour and as instantly sold whenever it has come on the market. Right place always sells in Spain.

Why will Spain remain pretty bouyant during a uk/worldwide recession?

Bob and his wife Sheila live in Worcester. They are both coming up to 60 and both are retiring on good private pensions. Bob & Sheila live in a house they bought in 1992 for £85,000 and the £10,000 mortage was paid off 5 years later. The house was valued in 2001 at £300,000 and in 2006 valued again at £380,000. Bob and Sheila MEW'd £40,000 out of the house for a cruise and to gove £30k to their son as a deposit on his house. In July 2008 Bob&Sheila go to look at Spain because they are sick of England (immigrants, hoodies, high cost of living) and have enjoyed holidays there in the past. They see a few places and come back and put their house on the market for £400k. A month later they drop the price to £380k and then in October down to £350k. HPC has kicked in and so in desperation they sell for £300k, pay off the £40k and walk away with £260k. They soon realise they can buy a nice 3 bed townhouse by the sea for £200k. They buy and spend a further £20k on tax, costs etc. £40k goes in the bank along with £40k (25% lump sum on pension). So even though they dropped their house price by 25% (£100k) they can still afford to buy a nice house with room for the grandkids in cash and still have £80k in the bank. Plus food and drink is cheaper (not helped though by the xchange rate) and council tax is £30 per year, heating bills, petrol etc are half so the pension goes so much further.

Now the above takes for granted that Bob and Sheila have no savings or investments whatsoever but do have £40k of debt and do drop their house price by 25%. It also takes into account that the family home is pretty averagely priced. Now Bob and Sheila are part of the baby boomer generation and are coming up to retirement at a time when the UK will be an expensive and bleak place to live. Many of these baby boomers would have holidayed in Spain and have grandkids so somewhere with a good all year round temperature, just a couple of hours and cheap flight away will certainly fit the bill. Cost of living is a lot less and heating is not needed as much, which is a blessing with fuel bills flying through the roof.

Anyway I suppose my point is that Spain is in my opinion a safe bet at the moment (unless your buying new build flats (familiar story worldwide) or in inland areas). I would be interested in hearing from people with opposing views.