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Five Live Now - Ex-pats Returning From Spain

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http://news.bbc.co.uk/1/hi/uk/8115973.stm

"These little houses with one or two bedrooms were 120,000 euros. Now I'd be lucky to get 75,000.
"When we couldn't pay the rent one month and had to phone our parents for help, we realised economically it wasn't working here.
"We've both worked for firms that have gone bust in the past year.

No laughing please ............................................................................. :lol:

Edited by grey shark

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There's nothing to laugh about - we're going to have to work to pay for their healthcare etc.

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There's nothing to laugh about - we're going to have to work to pay for their healthcare etc.

Exactly - we'd cunningly exported hundreds and thousands of our coffin dodgers overseas to drain the Spanish health service dry.

Not only will they be clogging up our waiting rooms they'll also have even more to moan about than our own stay at home old folk.

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I have just returned from a holiday on the Costa del Sol (Mrs hilltop's choice). Unfinished projects, blocks of unsold flats, desirable (not to me) villas for sale everywhere. The hotel was well below capacity but with many Irish people there! More than one Estate Agents closed and for sale. Although it is not yet peak season, the vast majority of holiday homes were shuttered and you wonder if they will be used this year. A quite well located block of flats offered 2 bed, 2 bathrooms for 40,000 Euros. Give it say, another 15 months of decay and these places will be ghost towns.

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A quite well located block of flats offered 2 bed, 2 bathrooms for 40,000 Euros.

Which town was that in? I haven´t seen prices quite as low as that yet.

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Which town was that in? I haven´t seen prices quite as low as that yet.

Nerja, which I thought was unspeakable.

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Nerja, which I thought was unspeakable.

I actually quite like Nerja, its a lot better than many of the other costas.

Cheapest I´ve seen there for two bedroom is 120k euro. Was that through an agency or direct from a developer?

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I actually quite like Nerja, its a lot better than many of the other costas...

+1

Do they still have the restaurant set into the cliff?

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From Spanishpropertyinsight:

Demand for second homes amongst Spaniards - traditionally the biggest group of buyers - has also taken a dive since the start of 2008.

Spain looks like it is going into a severe recession, with unemployment rising by 1 million (47%) over 12 months to the end of January 2009, and 200,000 people losing their jobs in January 2009 alone. There are 3.3 million unemployed in Spain today, and some expect it to hit 4 million by year end. Fearful of losing their jobs, Spaniards are not in the mood for buying holiday homes right now.

That Crunchy Feeling

Another major reason for the collapse in demand for Spanish property, and holiday homes in particular, is the credit crunch.

Without credit, most people cannot afford to buy holiday homes in Spain.

New mortgage approvals fell by 35% in the first 9 months of 2008, compared to the same period the year before. Banks can’t lend like the used to thanks to rising default rates (up from 0.64% in September 07 to 1.83% in September 2008, and expected to go much higher) and the death of the mortgage securitisation market.

Where they do lend, banks are using more conservative mortgage valuations and loan-to-value ratios, and have tightened up their lending criteria.

On the other hand, Euribor - the rate normally used to calculate mortgage payments in Spain - plunged 90 basis points (a change of -21%) to 3.45% in December, bringing some relief to borrowers on annually resetting Spanish mortgages. Many borrowers, however, will not see their interest payments fall for months to come.

Monumental Housing Glut

According to a study by José García-Montalvo, a professor at the Pompeu Fabra University, there are more than 1 million newly-built homes on the market, which will take developers more than 3 years to offload at current sales rates.

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I actually quite like Nerja, its a lot better than many of the other costas.

Cheapest I´ve seen there for two bedroom is 120k euro. Was that through an agency or direct from a developer?

It was just behind Paseo de la Burriana, a banner across the building, so I suspect the developer. You are tempted,aren't you?

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