Bear Goggles Posted December 30, 2004 Share Posted December 30, 2004 Went out for a drink with some friends last night, they are buying an off plan property about 50 miles from Madrid. They took great pleasure anouncing that they had already "made" €30,000 and the place and it won't even be finished until the end of next September. They then announced that because they'd "made" so much on it they were going to buy another one. When I tried to tactfully suggest that maybe they shouldn't put all of their eggs in one basket, they said that they were not putting all of their eggs in one basket because they've never met anyone that's lost money on property. Interestingly though, they now accept that property is going to fall in value in the UK, but not apparently in Spain. A new form of denial perhaps? I have no idea how the Spanish property maket will unfold, I guess it will have to fall at some point as it's even more overvalued in relation to earnings than here, however I guess it could keep rising for some time. Quote Link to comment Share on other sites More sharing options...
Red Baron Posted December 30, 2004 Share Posted December 30, 2004 Spanish property is subject to an even bigger bubble than the UK. My niece is an estate agent in southern Spain where she reckons property could suffer a 50-60% crash because the market has been driven to unsustainable levels, mostly by the British. In her words the Spanish market is 'a bubble driven by the UK bubble'. Your friends are being extremely foolish. Quote Link to comment Share on other sites More sharing options...
Casual Observer Posted December 30, 2004 Share Posted December 30, 2004 Went out for a drink with some friends last night, they are buying an off plan property about 50 miles from Madrid. They took great pleasure anouncing that they had already "made" €30,000 and the place and it won't even be finished until the end of next September. They then announced that because they'd "made" so much on it they were going to buy another one.When I tried to tactfully suggest that maybe they shouldn't put all of their eggs in one basket, they said that they were not putting all of their eggs in one basket because they've never met anyone that's lost money on property. Interestingly though, they now accept that property is going to fall in value in the UK, but not apparently in Spain. A new form of denial perhaps? I have no idea how the Spanish property maket will unfold, I guess it will have to fall at some point as it's even more overvalued in relation to earnings than here, however I guess it could keep rising for some time. <{POST_SNAPBACK}> On what basis does your friend think he's already made money? Is the developer offering the same property at the higher amount? Quote Link to comment Share on other sites More sharing options...
zzg113 Posted December 30, 2004 Share Posted December 30, 2004 They took great pleasure anouncing that they had already "made" €30,000 on the place and it won't even be finished They have "made" absolutely jack-shit until they sell the place. they now accept that property is going to fall in value in the UK, but not apparently in Spain Yes, this is a common variation of irrational denial. Northerners often say the same kind of thing "Oh prices will fall in the South, but they won't fall here (in the North) we don't get the same kind of boom and busts as the South." Quote Link to comment Share on other sites More sharing options...
Bear Goggles Posted December 30, 2004 Author Share Posted December 30, 2004 Your friends are being extremely foolish. I agree, the question is, will the bubble burst before next sept? If it hasn't they could get away with it, but then they'll probably blow it whatever if they buy another one now. They have "made" absolutely jack-shit until they sell the place. Well, I thought it best not to remind them of this fact as they were already getting rather defensive and my girlfriend was giving me the evil eye!! Quote Link to comment Share on other sites More sharing options...
George Posted December 30, 2004 Share Posted December 30, 2004 Spain lol, 3rd world country. Its just stupid Brits and those 'home in the sun' programs that fuelled that false market. Locals can't afford your place in the sun, so who do you sell it to? More stupid Brits? Quote Link to comment Share on other sites More sharing options...
Harry Sacks Posted December 30, 2004 Share Posted December 30, 2004 ...and it won't even be finished until the end of next September.<{POST_SNAPBACK}> If ever. Quote Link to comment Share on other sites More sharing options...
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.