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House Price Crash Forum

Jedi

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About Jedi

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    HPC Newbie

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    Lancashire, UK
  1. Hello Markinspain. The agent and Owner { it was a resale @ 10 years old } were quite confident that the property is worth the asking price and that I was getting a bargain. Apparently it had been substantially reduced already. Even if they had have dropped another 20-30,000 euros off the price I think that I have still made the right choice under the current economic climate. If I had had the cash to buy the apartment outright then that would have been a different prospect. To have two large mortgages which would be costing over £1400 per month would probably be manageable if the economy was not in recession. The idea was to purchase and rent out the apartment and hopefully cover a large proportion of the mortgae and maintenance costs. In say three years time we would sell our property in the Uk and pay off the spanish mortgage and have a lump sum left over hopefully. We could then move to Spain. The other option was to rent out our UK Property { keep the option of returning to the UK if things didn't work out in Spain }. The rent would pay the UK mortgage each month and then hopefully my wages in Spain would pay the spanish mortgage. Both Sounded Feasible until I read some of the posts on this forum from members who had experienced the reality of the economic downturn and the fact that property was not renting in Spain due to oversupply and property prices were plummeting. I will keep returning to this forum and read how others are managing during the economic crisis facing most of Europe at the moment. Thank You Jedi
  2. Hello Again everyone. I have not been on this forum for a while now. I hope everyone is managing somehow to cope with the recession. The Credit Crunch here in the UK is really biting now, as I imagine it will be in Spain. Many of my colleagues have had to default on their mortgage and have the properties repossessed because they cannot sell them. I know of many people who had bought newer properties on the strength that they had provisionally sold their own property, only to have the buyers back out at the last minute. These people have been lucky enough to find tenants so at least the proerties are rented out and paying towards the mortgages. I really wanted the apartment in Calahonda but ultimately my head Ruled my Heart, Thank Goodness. We have both realised that the way things are we never could have kept up the Mortgage Repayments on two properties. I can imagine that one or even maybe both the UK property and the Spanish property would have been repossessed and our dreams totally shattered. Luckily we have paid off our UK mortgage the property is ours and won't be repossessed. We can regroup now, save up and maybe one day when the economy recovers, have a nice lump sum deposit. Thanks Again to each and every member who helped us to reach what I now know was the Right Decision, not to buy the apartment. Jedi
  3. Evening Everyone. There is apparently no chance of a price reduction from the Vendor. Good Luck to him with his sale. I think that even if he had lowered the price for us, cancelling the purchase was still the right decision during the current economic situation. The property was very well laid out and spacious, within a good area and if I had the cash I would have bought it. To be tied down with a large mortgage for 25 years with the imminent probability of interest rates going up and the Current House Price Crash is a different prospect. I am now Mortgage Free so have some Peace of Mind. We will take the advice of the experienced members on this forum and save as much as we can for a few years. By then, hopefully the property prices will be very low and we will look for a bargain which we can afford more easily. Again I ask has anyone gone through with a purchase recently and are glad that they did or are they struggling. It would be nice to know just out of interest. Thanks Again. Jedi
  4. Hello Again Everyone. Well I have cancelled my property purchase in Spain and am now 6,000 Euros out of pocket and I will put this loss down to experience. The funds that I had available for the property purchase in Spain have been put to Good Use though. My Consolation is that I have paid off my UK Mortgage and that has given me Peace of Mind. I wonder whether any other members are in the same position that I was, but have gone through with their purchase and are struggling with a massive mortgage? Thank You Very Much for Your Advice Everyone. I really appreciate it. P.S. The weather in the UK is Terrible as usual Jedi
  5. Morning Everyone. Thanks for all the helpful information that you, the members of this forum members have provided. It has been a real eye opener for me, contradicting most of what various estate agents have told me regarding the property situation in Spain. " An apartment like this will rent out easily " and "the Value will increase". I only wish that I had discovered this forum 4 weeks ago before I paid my 6,000 Euro Deposit I will definitely be more careful in the future and plan to take more holidays in Spain now that I won't have a 1200 Euro monthly mortgage repayment around my neck.. Thank You Once Again. Jedi.
  6. Hello Again. I have been contacted by the agent selling the property this morning after our solicitor told him we were looking to pull out of the deal. He told me that things aren't as bad as people say on the Costa Del Sol and that he is sure we can rent out the property no problem. The Vendor is not prepared to drop the price! The Agent also said that if I decide to pull out now that apart from losing my 6,000 Euro Deposit I will regret missing out on such a nice property in the future. I must admit that the property is Very Nice but who should I believe in todays' economic climate?. 1. Do I believe the agent who has a vested interest in me buying the apartment, {ie: commission}. 2. Do I believe the members of this forum who are speaking from Personal Experience and have no apparent reason to want to put me off buying in Spain during the present economic upheaval. That was a Very Difficult Decision to make. Looks like I have just wasted 6,000 Euros but may have bought myself some Peace of Mind. Time to Pay off my UK Mortgage I think and then save up a nice deposit over the next few years and Maybe Try Spain Again. Good Luck to everyone. Thanks Again for all the Help. Jedi.
  7. Morning. Thanks for the replies. I have contacted our Solicitor in Spain this morning with a revised -20% offer and am now awaiting a reply. If the answer is not favourable then I will implement Plan B. Walk Away and lose my 6,000 Euros plus some extra costs but have much less to worry about. Thanks again for the Advice everyone.
  8. Evening Everyone. Are there any members with apartments in the Calahonda / Marbella area who are having trouble Renting out or Selling their proeperties at the moment. We have a very Important , possibly Life changing Decision to make before we get asked for the 10% deposit to secure the property. Take a 6,000 Euro loss now or maybe lose much more if we cannot afford the payments. The seller has been very helpful with reducing the price as you can imagine. Thanks
  9. Hello The apartment is on the hillside above Calahonda, overlooking the sea approximately 10 minutes drive from the beach at Cabopino. Our mortgage will be in excess of 200,000 euros which means monthly payments of @ 1200 euros. A couple of months ago I would not have been worried about repayments but now in todays present economic crunch who knows what will happen. Thanks for the Reply.
  10. Thanks for the reply prophet-profit. It is only the recent credit crunch that has caused me to have second thoughts. Went to the local supermarket on Friday for our main monthly shop. Everyday items had gone up in price, not a couple of pence but 17p and 19p. I ended up spending @ £20 more and didn't even buy the normal treats such as chocolate and sweets. My monthly diesel costs have gone up by £15 and also gas and electricity too. We never envisaged this when we decided to invest in Spain. I suppose that there will be other members in the same position as we are. Does anyone else wish to share their opinions and comment on this matter? Thanks Again.
  11. Hello from a New member. Wish I had found this Forum earlier. We are currently in the process of purchasing a resale apartment on the Costa del Sol approximately 10Km west of Marbella. I have been over to view the apartment and surrounding area and was quite impressed. The apartment seems good value for money considering it's size and location and has been fully refurbished. My wife and I intend to purchase the property and rent it out long term { 11month contracts } and take the odd holiday there. In around four years when our child finishes primary school in the UK we plan to move to Spain. The purchase process has been ongoing for 2 months now and we are awaiting a bank valuation in order to finalise the LARGE mortgage. Due to recent events including the Credit Crunch here in the UK I have started to have second thoughts. When we started the purchase process the economy was not in such a state as it is now. If we continue with the purchase then we will have a nice large apartment but also a very large mortgage in addition to our smaller UK mortgage. If for some reason we cannot rent out the property then we will really struggle to repay the Spanish mortgage and in the worse case scenario we could lose the property. I stand to lose my 6,000 Euro reservation deposit if I cancel the purchase but stand to lose much more if we then find that we cannot afford the repayments. I have enough money saved in my UK bank to pay the mortgage shortfall and secure the property. If I cancel the property purchase and lsoe the 6,000 Euros then that remaining money could be used to pay off my UK mortgage so I would be virtually debt free. I could then look to retire early. My wife will be heartbroken if I cancel. Any Advice from experienced members would be much appreciated in helping me to decide my fate. Thank You in advance
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