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Our favourite foreign propety bear is now going on about 'oversupply and tough market' again in Spain. Hang on, he's got a red rag!

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Our favourite foreign propety bear is now going on about 'oversupply and tough market' again in Spain. Hang on, he's got a red rag!

'It's a really tough market' the EA said, 'the Germans have already shipped out'.

Spain - a massive bubble built on the back of the bubble in the UK. I have relatives in Spain who are already talking of 20% drops in the last year and developers abandoning projects half-built because the buyers have gone.

A Place in the Sun?

Edited by Red Baron

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He's just mentioned about properties on the coast going down 20% already !!

But that is Spain, prices obviously only go up in the UK. :blink:

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He's just mentioned about properties on the coast going down 20% already !!

Exactly what my relatives who live in Spain are saying (see my earlier post).

Nice to have it confirmed on TV!

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'Oh bugger, me garage-cum-apartment won't make me rich after all, me ceilings are too low, lord lumme I've lost 25k! perhaps I shouldn't have called it Dunparkin either' :lol:

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Villa on for £220k

Got an offer of £194k

Rejected it

After a while lower asking price to £200k

Original would be buyers now moved on...

(Greedy sellers)

Watch out though - To be repeated across this land very soon too!!

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'Oh bugger, me garage-cum-apartment won't make me rich after all, me ceilings are too low, lord lumme I've lost 25k! perhaps I shouldn't have called it Dunparkin either' :lol:

This reminds me of many a Beeney prog where, after doing the maths, she would tell the novice developer that the entire profit for the project was due to HPI. So now we find some "prop dever" failing to turn a profit cos she f'ed up. Really? More like she never did anything right in the first place other than invest in a rising market. HPI later, she thinks she's some friggin Richard Branson who has discovered a money tree. No missus : you found a bull market!

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Villa on for £220k

Got an offer of £194k

Rejected it

After a while lower asking price to £200k

Original would be buyers now moved on...

(Greedy sellers)

Watch out though - To be repeated across this land very soon too!!

Something didn't ring quite true with their reason for returning to the UK. Their daughter was going to college? Why not rent a flat for her (or heaven forbid tell her to get a job and pay her own rent!) or ship her off to a relative for a couple of years? Later in the programme, it was mentioned that it was for work reasons.........

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I think that the perilous state of the Spanish holiday and apartment market has huge significance. I’ve heard reports of prices dropping by approximately 30% over the past two years. The supply of unsold ‘investments’ is colossal, self financing rental incomes are a pipe dream, and the supply of new build properties seems endless. Add in corrupt local and national government regulation, doggy lawyers, agents and builders and you have all the ingredients of a seismic crash.

Would anyone care to guess how many ‘investors’ are being slowly spit roasted in Spain at the moment, fishing for buyers in moribund markets. I really cant see a recovery in the Spanish market for at least a decade, potential buyers are now making the same mistakes in Bulgaria, Turkey, Hungary and a score of other sap traps. The Great Spanish Property Bust is here.

Ooooooh the humanity! :ph34r:

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'Oh bugger, me garage-cum-apartment won't make me rich after all, me ceilings are too low, lord lumme I've lost 25k! perhaps I shouldn't have called it Dunparkin either' :lol:

"Why didn't you get planing permission? I thought the builders did that"

Priceless :lol:

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"Why didn't you get planing permission? I thought the builders did that"

Priceless :lol:

Hmm - 'and the builders didn't mention that the ceilings had to be 2.5 metres high' she said - cos they wanted to put paella on the table for their bullfight loving offspring, luv.

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We've all seen the crash in Spain coming a long way off. -20% on the coasts is just the begining. I have no doubt that many properties on the Costa’s will be uneconomically viable (not enough rent vs. too much cost), whilst at the same time falling in value. There will be many areas where 50% falls will be the norm and still you can't sell. If you can't sell a property and its rental yield is negative effectively the properties worthless. It could be worse than last time in Spain as the scale of UK ownership by naive mug punters is 4 times the early 90's.

With this and what going on in Florida it's going to have a big impact on sentiment in the UK. We are all related or now someone who owns in these markets and they can't hide that it's hurting.

Pablo Silver or Lead?

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Hmm - 'and the builders didn't mention that the ceilings had to be 2.5 metres high' she said - cos they wanted to put paella on the table for their bullfight loving offspring, luv.

Exactly. Have you ever met a spaniard over 5"5' tall?

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We've all seen the crash in Spain coming a long way off. -20% on the coasts is just the begining. I have no doubt that many properties on the Costa’s will be uneconomically viable (not enough rent vs. too much cost), whilst at the same time falling in value. There will be many areas where 50% falls will be the norm and still you can't sell. If you can't sell a property and its rental yield is negative effectively the properties worthless. It could be worse than last time in Spain as the scale of UK ownership by naive mug punters is 4 times the early 90's.

In earlier posts on this thread I mentioned relatives in Spain; in fact they are my nephew and niece and she works for a firm of realtors in Muhaca and has an excellent knowledge of the market.

She is predicting a massive collapse in prices, c. 50-60%, an assesment based on her knowledge of a stalled market, abandoned half-finished developments, and the extent to which the British (the biggest buyers in Spain) are over-extending themselves by MEWing against their UK properties to purchase second homes in Spain. These buyers have a forlorn hope that they can rent the Spanish property to cover the cost, but in her own words 'every man and his dog in UK owns a second home in Spain, so who exactly are they going to rent to and, more importantly, who are they ever going to sell to?'

According to her, coastal property prices in Andalucia have already dropped 20% and there's much worse to come.

Edited by Red Baron

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We've all seen the crash in Spain coming a long way off. -20% on the coasts is just the begining. I have no doubt that many properties on the Costa’s will be uneconomically viable (not enough rent vs. too much cost), whilst at the same time falling in value. There will be many areas where 50% falls will be the norm and still you can't sell. If you can't sell a property and its rental yield is negative effectively the properties worthless. It could be worse than last time in Spain as the scale of UK ownership by naive mug punters is 4 times the early 90's.

With this and what going on in Florida it's going to have a big impact on sentiment in the UK. We are all related or now someone who owns in these markets and they can't hide that it's hurting.

Pablo Silver or Lead?

population of Spain two thirds that of uk but 4 times as many homes built per year over the past 2 decades!

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At least you're allowed to build in Spain. Just imagine if the law was written like it is here, with Labour's Build Absolutely Nothing Anywhere Near Anyone system. The Spanish bubble would be still be going, higher and higher, with no 'pressure relief value'.

The spanish market may spike up a bit on a cheap-money speculation frenzy, but because you're allowed to build it doesn't take long for supply to catch up with demand and bring the price down to somewhere near the build price. Why pay more than the build price for a villa if you're allowed to just build another one? Plus the locals will end up with lot's of nice cheap houses to choose from - bit different to here, with locals in Wales priced out of their own market.

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  • 336 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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