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Rusty

Holiday Home Price Crash?

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If there are already so many people with mortgage arrears I'm starting to wonder if a HPC in the UK won't lead to the same in all the holiday destinations where so many Brits have bought, eg Spain, France, Bulgaria, etc. etc. I'm pretty sure many have bought using second mortgages on their UK homes. So what's going to happen to all the homes abroad if the mortgage can't be serviced? Let's face it, Spain is definitely overpriced. The prices in Bulgaria seem already to be less than they were a year ago.

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I'm just wondering about British Holiday homes. If you owe 2500 p/a in leasehold fees on your holiday shack and you can't even give it away, does that mean you are tied to the leasehold for the term of your natural life?

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I'm just wondering about British Holiday homes.  If you owe 2500 p/a in leasehold fees on your holiday shack and you can't even give it away, does that mean you are tied to the leasehold for the term of your natural life?

Guess that means that one day I just might be able to afford a property in Spain

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The prices in Bulgaria seem already to be less than they were a year ago.

i was told by a local from Bulgaria that locals can get property at about 20 eu per M2.

yes thay have the Mafia but they charge less than Blair & Co in protection money/taxes so it still sounds like a good move to me

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If there are already so many people with mortgage arrears I'm starting to wonder if a HPC in the UK won't lead to the same in all the holiday destinations where so many Brits have bought, eg Spain, France, Bulgaria, etc. etc.  I'm pretty sure many have bought using second mortgages on their UK homes.  So what's going to happen to all the homes abroad if the mortgage can't be serviced?  Let's face it, Spain is definitely overpriced. The prices in Bulgaria seem already to be less than they were a year ago.

It obviously depends what happends to the UK market, if people can't MEW or sell their UK abode for as much as they want then it's bound to impact secondary markets, especially when they're building like crazy out there (flats are already down in Spain).

These things move in waves so it will just take a while for it to hit the Spainish market.

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I bought a place in Cyprus 2 years ago for cash (I am Cypriot and intend to retire there) - I would NEVER borrow to buy a holiday home. I think it is an extravagance and you should only splash out if you can afford it. Anyone who's MEW'd to buy one purely for investment deserves all they get, IMHO.

And there's nothing more annoying than seeing whole new developments go up in prime locations with hardly anyone living in them, as their owners only ever spend 4 weeks a year there...this also affects the local economy and prices out the Cypriots who can't now afford first homes in such locations. It stinks. :angry:

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And there's nothing more annoying than seeing whole new developments go up in prime locations with hardly anyone living in them, as their owners only ever spend 4 weeks a year there...this also affects the local economy and prices out the Cypriots who can't now afford first homes in such locations. It stinks.  :angry:

Just as much as it stinks when people buy second homes in rural / seaside locations in Britain and price out the locals there as well. I have to say that from what I have seen it does seem to be that under current lending rules once someone takes out a mortgage and buys a house that seems to entitle them to unlimited borrowing against properties they don't own. I have said time and again if BTL / second home mortgages are based purely on estimated rental income and self-certified income why can't everyone have one. Why do you have to be in debt with a mortgage first? Hope that makes sense. :unsure:

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Just as much as it stinks when people buy second homes in rural / seaside locations in Britain and price out the locals there as well. I have to say that from what I have seen it does seem to be that under current lending rules once someone takes out a mortgage and buys a house that seems to entitle them to unlimited borrowing against properties they don't own. I have said time and again if BTL / second home mortgages are based purely on estimated rental income and self-certified income why can't everyone have one. Why do you have to be in debt with a mortgage first? Hope that makes sense.  :unsure:

It's a very good point...and you made it very well!

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If there are already so many people with mortgage arrears I'm starting to wonder if a HPC in the UK won't lead to the same in all the holiday destinations where so many Brits have bought, eg Spain, France, Bulgaria, etc. etc.  I'm pretty sure many have bought using second mortgages on their UK homes.  So what's going to happen to all the homes abroad if the mortgage can't be serviced?  Let's face it, Spain is definitely overpriced. The prices in Bulgaria seem already to be less than they were a year ago.

IMHO

The UK is destined for falls in the region of 20-25% over the next few years.

The cream of those falls will be borne by the "City lifestyle" appartments which in turn will become unfashionable.

However the above falls will pale into insignificance to the falls and loss of popularity of places like Spain, Bulgaria and Romania.

There are many souless, trashy developments/villages built purely for the UK 2nd home/investment market with appalling build quality. These will ultimately fall into ruin as properties are abandond and fall into dis-repair as the cost of ownership begins to bite against how badly un-fashionable they become.

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I bought a place in Cyprus 2 years ago for cash (I am Cypriot and intend to retire there) - I would NEVER borrow to buy a holiday home. I think it is an extravagance and you should only splash out if you can afford it. Anyone who's MEW'd to buy one purely for investment deserves all they get, IMHO.

And there's nothing more annoying than seeing whole new developments go up in prime locations with hardly anyone living in them, as their owners only ever spend 4 weeks a year there...this also affects the local economy and prices out the Cypriots who can't now afford first homes in such locations. It stinks.  :angry:

Bl00dy eyesore when you're on a boat, come round the peninsular, and you're faced with a stack of empty holiday homes staring back at you. Know what you mean.

/G

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In the last crash many Brits were forced to offload thier holiday properties.

Of course the trouble was that everyone else was trying too, and prices bombed.

The bottom is going to fall out of that market very soon.

I'm very particular to Ibiza, fab little island.

Half price should be a reasonable discount.

If prices don't bomb that badly (ie at least 50% down), don't worry.

You can rent property for next to nothing, because of the chronic over-development.

The Spanish economy is going to take a very very long time to recover from this bust.

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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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