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'our €250,000 Spanish Villa Sold For Just €87,000

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Telegraph 29/4/14
'Like thousands of other British expatriates, Bob Puddicombe and his wife, Phyllis, found that their retirement dreams of a place in the sun turned into a nightmare following the financial crash.

After 13 years living in the south of Spain, the couple returned home in 2012. Their three-bed villa in Almayate, near Malaga, was initially on the market for €250,000 (£206,000). It eventually sold for just €87,000 (£71,500). They have moved back to the Plymouth area, where they lived before moving to Spain.

Mr Puddicombe, who is nearing 70, said they decided to return to the UK as they were getting older and wanted the security of the NHS. But at the same time the adverse exchange rate has hammered the value of their pension in recent years.

"At least we were able to sell, and have used the proceeds to buy an ex-council house back in Britain," he said.

But many of the friends the Puddicombes left behind have not been so fortunate.

Property prices have continued to fall in many parts of southern Europe, particularly the popular and overdeveloped coastal regions of Spain, where the supply of holiday villas now outstrips demand.

House prices in Spain have fallen by more than 30pc since the crisis, with prices in some resorts plummeting by up to 70pc. At the same time, house prices have risen sharply in many parts of the UK in the past two years. This has had the devastating effect of pricing some returning expats out of the British housing market, making the return home costly or impossible.

To make matters worse, many are expecting that the pound will continue to strengthen against the euro in the next few years. While this will give some relief to those receiving a fixed income, such as a pension, from Britain, it means those selling properties to return home will find the sale price is exchanged for fewer pounds when they arrive.

Edward Knox, an analyst at currency brokers Caxton FX, said that this, in part, explained the sudden rush of expats returning to Britain. Figures published last week showed almost 90,000 Britons left Spain in 2013 - a 23pc reduction in British expatriate numbers in the country.

"Many may have been holding on, hoping property prices would recover," Mr Knox said. "But now they face the double whammy of prices falling and a weaker euro. Not surprisingly, many are opting to get out now before the situation gets worse."

DSCN0094_2894880d.jpg

Geoffrey Sword: 'We loved Andalusia, but it started to change'

This exodus is also being driven by demographics. There was a significant spike in the number of people retiring to Europe in the early 2000s, when mortgages were easy to arrange and the cost of living abroad was cheap. These pensioners are now heading into their late 70s, and are more likely to suffer imperfect health or to have lost a partner. Although free health care is available in countries such as Spain, it can be more limited, and there can be language issues for those who have only conversational Spanish.

Mark Bodega, a director of currency broker HiFX, said: "Many expats moved abroad seeking warmer weather along with a more relaxed lifestyle. Unfortunately, the Spain of several years ago - when the economy was thriving, jobs were relatively easy to obtain and the cost of living was cheap - is fast disappearing."

The flight is not confined to expats, either. Many with holiday homes are also selling up, which is acting as a further brake on property prices. Geoffrey Sword, from Bury in Lancashire, recently sold his holiday apartment in Calahonda in Andalusia after owning it for 12 years.

He and his wife, Kay, had enjoyed more than a decade of "fantastic holidays" with their family and friends, such as Margaret Brown (pictured above with the couple) but he has become "disillusioned" by the state of affairs in Spain.

"Everything has got a lot more expensive, from the parking tickets to a game of golf," Mr Sword said. He believes the introductions of higher rates, fines, sewerage fees and other costs are more to do with raising revenue than maintaining standards. "There isn't the same laidback atmosphere," he said. "There are so many add-ons, it seems as though they want to drive tourists away, not keep them, and it's becoming more difficult to enjoy."

His apartment took two years to sell and had to be reduced from €195,000 (£160,500) to €139,000 (£114,300). Mr Sword was dismayed by the additional charges, fees and taxes he had to pay to complete the sale. "Even now there is 3pc of the sale price in our Spanish bank, as I had to leave some in case it was needed to cover any unpaid taxes we didn't know about. I still have no idea when we might be able to transfer the funds back to the UK."'

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Another...UK house prices are booming , indirect marketing story.

The sooner this nonsense ends and we see the end of this sort of thing the better.

Although it may spike the net migration numbers. After all, previously the outflow to Spain presumable offset some of the inflow from Poland. But it's OK, I'm sure our housebuilders will spring into action to build enough accomodation for them all.

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This headline could equaly read:

"We tried to get someone to take our €87,000 (actual selling value ) house off our hands for €250,000 but not one was stupid enough".

People in the UK, especially the young and wives, need to learn that asking price and selling price are 2 different things !!!

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Although it may spike the net migration numbers. After all, previously the outflow to Spain presumable offset some of the inflow from Poland. But it's OK, I'm sure our housebuilders will spring into action to build enough accomodation for them all.

An old favorite. ;)

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believes the introductions of higher rates, fines, sewerage fees and other costs are more to do with raising revenue than maintaining standards. "There isn't the same laidback atmosphere," he said. "There are so many add-ons, it seems as though they want to drive tourists away, not keep them, and it's becoming more difficult to enjoy."

They don't want to drive tourists away, just you!

I don't remember paying sewerage rates or fines last time I rented a villa in Andalucia.

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I was in Spain over Easter, heard an English guy sitting in a cafe with some couple trying to get them to buy. He said 'Over every 10 year period, property prices in Spain always go up. That's a fact.' And he was just going on about what a good investment it was. Couldn't help but smirk.

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They don't want to drive tourists away, just you!

I don't remember paying sewerage rates or fines last time I rented a villa in Andalucia.

The apartment in Andalucia, with use of heated swimming pool, that we rent each year in Nov/Dec, costs us €750 for our six week stay, inclusive of electricity. No extras at all and we always feel very welcome.

The agent always attempts to get us to buy one, though, for less money each year, but at €500 a month to rent why would we want to buy?

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People discovering the realities of the free market.

Depends on your definition of 'free!' :mellow: Mr False Scarcity meets Mr Unlimited Credit

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> they decided to return to the UK as they were getting older and wanted the security of the NHS.

The NHS is one reason I avoid the UK!

Having a second home used to be a big thing but people seem to prefer a holiday in the destination of their choice, preferably in a hotel. Working wimmen certainly don't like spending a couple of weeks cleaning and washing at the holiday ruin in some southern European hell hole.

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This headline could equaly read:

"We tried to get someone to take our €87,000 (actual selling value ) house off our hands for €250,000 but not one was stupid enough".

People in the UK, especially the young and wives, need to learn that asking price and selling price are 2 different things !!!

indeed

Edited by Reck B

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BBC new property porn "Escape to the Continent"

Malaga....

http://www.bbc.co.uk/iplayer/episode/b0425x81/Escape_to_the_Continent_Spain_Malaga/

Nice part of Spain.....Inland, great climate,people, culture, space, lots of light and wonderful views...don't have to buy, renting is the new buying, you are then flexible, safe and in control....all the time in the world. ;)

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This headline could equaly read:

"We tried to get someone to take our €87,000 (actual selling value ) house off our hands for €250,000 but not one was stupid enough".

Similarly,

"His apartment took two years to sell and had to be reduced from €195,000 (£160,500) to €139,000 (£114,300)."

means "It took two years for him to accept that his apartment would only sell for the market value of 139,000 and not his kite flying 195,000"

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"our €250,000 Spanish Villa Sold For Just €87,000"

Ive got a 50 million pound cup of coffee but it can sell for just £2. The banks should lend more so we can return back to normal. Bloomin iPads.

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"our €250,000 Spanish Villa Sold For Just €87,000"

Ive got a 50 million pound cup of coffee but it can sell for just £2. The banks should lend more so we can return back to normal. Bloomin iPads.

I'll give you £1 ?

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I'll give you £1 ?

Rent it for a penny a month while I wait for the market to recover so I can sell for 60 million. Over ten years coffee always goes up I'm on to a winner

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The apartment in Andalucia, with use of heated swimming pool, that we rent each year in Nov/Dec, costs us €750 for our six week stay, inclusive of electricity. No extras at all and we always feel very welcome.

The agent always attempts to get us to buy one, though, for less money each year, but at €500 a month to rent why would we want to buy?

Ah so you don't have to rent....

The freedom of renting if you fancy doing something different and going somewhere else you can. €750 seems very reasonable for a 6 week stay. Can't believe you don't want to buy one, think of the rent you could get.... :ph34r:

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Ah so you don't have to rent....

The freedom of renting if you fancy doing something different and going somewhere else you can. €750 seems very reasonable for a 6 week stay. Can't believe you don't want to buy one, think of the rent you could get.... :ph34r:

:D

Is it me or has the humour came back this week ?

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Ah so you don't have to rent....

The freedom of renting if you fancy doing something different and going somewhere else you can. €750 seems very reasonable for a 6 week stay. Can't believe you don't want to buy one, think of the rent you could get.... :ph34r:

Worldwide Income

If you are tax resident in Spain, you are liable to pay tax on your worldwide income, worldwide gains, and worldwide assets (wealth tax).

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I was in Spain over Easter, heard an English guy sitting in a cafe with some couple trying to get them to buy. He said 'Over every 10 year period, property prices in Spain always go up. That's a fact.' And he was just going on about what a good investment it was. Couldn't help but smirk.

It's already being stoked up for another boom-crash...

The numbers of foreign buyers of spanish property rose last year by 36% !!! (article in Spanish)

http://www.lavanguardia.com/economia/20140429/54406438335/adquisicion-viviendas-extranjeros-crecio-2013.html

It seems most people don't accept that renting would be a better option..

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It's already being stoked up for another boom-crash...

The numbers of foreign buyers of spanish property rose last year by 36% !!! (article in Spanish)

http://www.lavanguardia.com/economia/20140429/54406438335/adquisicion-viviendas-extranjeros-crecio-2013.html

It seems most people don't accept that renting would be a better option..

You can't loose on property....

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