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munimula

A Place In The Sun Revisited

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Yep, 25% below asking price!

These guys originally bought a 2-bed off plan in 2000 for £90K as a holiday home.

Sold this for £163K 2 years later (73K profit)

Sold house in Surrey (£150K profit)

Bought a 3-bed town house offplan for £260K.

This is now 'worth' £400K (£140K profit). They are renting it (£1200 per month) to cover £340K mortgage + building costs on another villa.

In 4 years they have gone from £90K apartment to a property portfolio worth over £800K

They have undoubtedly done very well but it looks like their mortgage/debt is in the £360K+ region and they said as a builder he was only able to get 'occasional work' and she wasn't really working at all. So effectively they had a £360K mortgage with £1200pcm to cover it. What are the chances they will still have their villa in 2 years time?

The good thing is that in the programme there were pieces of realism;

The Costa del Sol is flooded with small apartments
It's a buyers market

and the best bit...

Vendors are taking upto 25% below asking

Finally a realistic house price programme from C4

Edited by munimula

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Yep, 25% below asking price!

they said as a builder he was only able to get 'occasional work' and she wasn't really working at all. So effectively they had a £360K mortgage with £1200pcm to cover it. What are the chances they will still have their villa in 2 years time?

Yeah, I seen that... 25%, otherwise known as a crash. I'd class 25% drop a crash.

He might not be able to get work, but remember the woman was a "technician". ;)

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Guest Charlie The Tramp

The beginning of the flight from Spain. A friend of mine has been living there on and off for twenty years and says they are coming up for sale where he is by the hundreds. All that MEWing to buy their dream holiday home looks like the dream may turn into a nightmare. Many told him when arriving we will let it out when we are not here and that will pay the mortgage back in the UK. Trouble is supply is outstripping demand and that new mortgage of 150k is now frightening them. :(

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The couple in this program were gruesome!

Classic example of moneyed chavs

I especially liked the husbands comment -

"Oh no, we don't like this village. Too many Spanish people"

How dare Spanish people live in Spain? Send 'em all back :lol:

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Yeah, I seen that...  25%, otherwise known as a crash.  I'd class 25% drop a crash.

He might not be able to get work, but remember the woman was a "technician".  ;)

a nail technician...

How could they take on a £360K+ mortgage with only him getting 'occasional building work' and the £1200pcm before tax and costs rental income?

The programme, although with moderated words about the state of the housing market was basically trying to claim they had turned a £90K flat into a 'property portfolio worth over £800K' which does sound pretty amazing at first. However the truth was that they also sold a Surrey home (which they had before they bought the flat) to buy the 2nd property and at least half that £800K was debt. In what they were claiming was a market where vendors are accepting 25% less that £800K could quite easily be only £600K leaving them with £200K negative equity. :o

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Yep, 25% below asking price!............This is now 'worth' £400K (£140K profit).

"Worth" £400K but seller may need to take a 25% cut = worth £300K in my book.

Progam still fundamentaly flawed: "this is worth that".....

The BTLOptingOut in-laws have 3 houses and a restaurant up for sale in the Costa Blanca apparently worth £xxx............they can't sell them for love nor money tho! :blink:

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a nail technician...

How could they take on a £360K+ mortgage with only him getting 'occasional building work' and the £1200pcm before tax and costs rental income?

The programme, although with moderated words about the state of the housing market was basically trying to claim they had turned a £90K flat into a 'property portfolio worth over £800K' which does sound pretty amazing at first. However the truth was that they also sold a Surrey home (which they had before they bought the flat) to buy the 2nd property and at least half that £800K was debt. In what they were claiming was a market where vendors are accepting 25% less that £800K could quite easily be only £600K leaving them with £200K negative equity:o

But if their debt is £360K then their '£800K property portfolio' would have to fall in value to about £160K for them to end up with £200K neg equity.

At worst they'll have to sell the new villa for what is cost to build, and move back into the town house, debt free.

I can think of worse situations to be in.

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a nail technician...

How could they take on a £360K+ mortgage with only him getting 'occasional building work' and the £1200pcm before tax and costs rental income?

The programme, although with moderated words about the state of the housing market was basically trying to claim they had turned a £90K flat into a 'property portfolio worth over £800K' which does sound pretty amazing at first. However the truth was that they also sold a Surrey home (which they had before they bought the flat) to buy the 2nd property and at least half that £800K was debt. In what they were claiming was a market where vendors are accepting 25% less that £800K could quite easily be only £600K leaving them with £200K negative equity:o

As the Chav said "Loads a money" fact is they are asset rich but cash poor :ph34r:

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Guest Guy_Montag
suprised the locals dont burn the brits houses.

I'm waiting for this. When the locals can't afford to live in their villages, they might start getting a little upset.

Whether it's Spain, France or Bulgaria - I'm just waiting for it to kick off.

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I'm waiting for this.  When the locals can't afford to live in their villages, they might start getting a little upset.

Whether it's Spain, France or Bulgaria - I'm just waiting for it to kick off.

Just to chip in with Bulgaria, i have not heard of any hostility with local Bulgarians in villages. Unemployment is very high in rural Bulgaria and I think the Bulgarians are glad to sell their houses to Brits.

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They dont need to, they'll be buying them off 'em for 40 to 50% off soon

I doubt the average holiday villa would meet the needs of the average working Spaniard. Surrounded by a load of English and Germans, no thanks.

What will be more interesting is if these areas get bought up or rented by the government for social housing/newer forms of immigration.

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I'm waiting for this.  When the locals can't afford to live in their villages, they might start getting a little upset.

Whether it's Spain, France or Bulgaria - I'm just waiting for it to kick off.

I have already read about attacks on British owned property in Brittany by outpriced locals. That said, some greedy local had to sell it to them in the first place. The sellers all want cash laden british buyers...

S.

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Guest Coach

Alot of Brits buying in Spain and hoping to make a fast buck in capital appreciation probably don't realise that they have to pay Capital Gains tax on any profit they made in selling their property in Spain.

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I have already read about attacks on British owned property in Brittany by outpriced locals. That said, some greedy local had to sell it to them in the first place. The sellers all want cash laden british buyers...

S.

This is true. And the government have also done nothing to prevent it happening. In parts of SE Asia foreigners can't own property or businesses.

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  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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