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Can anybody share any personal experience regarding buying property in spain for investment purposes mainly, has it worked out for you , should you have bought elsewhere and would you do it again

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Can anybody share any personal experience regarding buying property in spain for investment purposes mainly, has it worked out for you , should you have bought elsewhere and would you do it again

At the moment, buy because you want to live there, not because you want to invest. The whole of Southern Spanish Coast has already been ruined by us, and the Dutch, and the Germans, and the Spanish themselves.

A Spanish Costa house price crash is already underway. Put your money on the horses instead!

VP

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Do yourself a favour and don't bother. Go and live there but for investment purposes the market is saturated. This advice comes from a bull !

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Guest consa

I personally own a run down townhouse in Spain, the coast (costa del sol) is saturated with property and the market is dead!!.

They are still building like crazy and the amount of properties available is vast, to buy or rent, very overpriced to buy although you can rent a nice place for approx 500 Euros pcm.

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buying property in spain for investment purposes

This sentence is a contradiction in terms! If you want an investment then don't buy in Spain.

I'm, catching a flight out there this afternoon to see the In-laws who have moved out there on masse. Even considered buying myself a town house in a traditional spanish (not Brit costa) village last year.

Despite it being considerably cheaper than here, comparitavely it's worse. Not only have the Spanish had a boom in these Phil&Kirsty 'esq shows they've also had daft Brits buying in their droves.

I would say if you expect the UK market to dip 10% expect Spain to dip 30% :o

I predict there will be dozens of Brit Eldorado ghost 'villages' with tumble weeds blowing through in 2010.

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Can anybody share any personal experience regarding buying property in spain for investment purposes mainly, has it worked out for you , should you have bought elsewhere and would you do it again

My brother-in -law bought a property in Torrevieja, from new about 15 years `ago I think. He's been trying to sell it for about 15 months now, and has reduced the price gradually in that time.

The problem he has is that he's competing with all of the marketing power of the new-build developers - no-one seems interested in second hand places. He's despairing about ever being able to sell it, and it's become a bit of a mill stone.

Also, last August I spoke at length to an agent who was helping me to buy a property in Turkey. He had also had some involvement in the Spanish market, and knew a number of other agents involved there too. I a nutshell, he thought the Spanish market was in serious trouble, due to over development. He thought it was all heading for a disaster.

Take all this however you wish. I have no axe to grind at all, although I do feel a little sorry for my brother-in-law!

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See the thread below:

http://www.housepricecrash.co.uk/forum/ind...?showtopic=3645

The thread will inform you about the 'Land Grab Laws' (LRAU and its replacement LUV). There are links that will lead you to more detailed information.

To buy property in Spain is very high risk, whether for investment or to live in, because of the land grab laws and because of the risk of a very severe property price crash.

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I personally own a run down townhouse in Spain, the coast (costa del sol) is saturated with property and the market is dead!!.

They are still building like crazy and the amount of properties available is vast, to buy or rent, very overpriced to buy although you can rent a nice place for approx 500 Euros pcm.

Yes agree 100% - the resales and off-plan markets both saturated. I have been trying to sell an apartment on Costa Del Sol for nearly 5 months and even thought I've dropped the price by 20% now, there are just no buyers around.

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Also, last August I spoke at length to an agent who was helping me to buy a property in Turkey.

I know of a chap who has been buying off - plan and selling for healthy profits in Turkey. I beleive he's done it 3 times in the last 12 months.

For pure investment always consider European Cities as you are likely to get much better rent as its year - round as opposed to just holiday seasons.

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I know of a chap who has been buying off - plan and selling for healthy profits in Turkey. I beleive he's done it 3 times in the last 12 months.

For pure investment always consider European Cities as you are likely to get much better rent as its year - round as opposed to just holiday seasons.

I was really looking for a holiday home rather than a get-rich-quick scheme! I didn't buy in the end - I reckoned it was cheaper and easier to rent one of the thousands of holiday homes that are always up for rent in Turkey - another area of over-development, IMO

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This sentence is a contradiction in terms! If you want an investment then don't buy in Spain.

I'm, catching a flight out there this afternoon to see the In-laws who have moved out there on masse. Even considered buying myself a town house in a traditional spanish (not Brit costa) village last year.

Despite it being considerably cheaper than here, comparitavely it's worse. Not only have the Spanish had a boom in these Phil&Kirsty 'esq shows they've also had daft Brits buying in their droves.

I would say if you expect the UK market to dip 10% expect Spain to dip 30%  :o

I predict there will be dozens of Brit Eldorado ghost 'villages' with tumble weeds blowing through in 2010.

yes, the prices may be lower in Spain than most of England but the HP to local income ratio is higher than here......

It must also be stressed that the rate of building is far greater than here.......

Spain's population is only two thirds of ours.....but last year they completed 4 times as many (half a million) new homes............

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yes, the prices may be lower in Spain than most of England but the HP to local income ratio is higher than here......

It must also be stressed that the rate of building is far greater than here.......

Spain's population is only two thirds of ours.....but last year they completed 4 times as many (half a million) new homes............

As was mentioned above, the best way to start in Spain at the moment is to rent long term. Rents in the non-obvious tourist places are a two thirds and even half the cost of the same in the UK.

But beware, many Spaniards in out-of-the-way places are beginning to be a bit anti people who pour in and snap up property, not so much the rental crowd but definitely the buying crowd. Of course the average Spanish person won't know at first which category you are in. They don't take to kindly to tasteless Brits wandering around in soccer support gear with lagers at the ready either. Spain outside the tourist traps is still, thankfully, a civilised and traditional place where they take a dim view of loud mouth Brits.

VP

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This sentence is a contradiction in terms! If you want an investment then don't buy in Spain.

I'm, catching a flight out there this afternoon to see the In-laws who have moved out there on masse. Even considered buying myself a town house in a traditional spanish (not Brit costa) village last year.

Despite it being considerably cheaper than here, comparitavely it's worse. Not only have the Spanish had a boom in these Phil&Kirsty 'esq shows they've also had daft Brits buying in their droves.

I would say if you expect the UK market to dip 10% expect Spain to dip 30%  :o

I predict there will be dozens of Brit Eldorado ghost 'villages' with tumble weeds blowing through in 2010.

hehe it's en masse. lol sorry found that funny.

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But beware, many Spaniards in out-of-the-way places are beginning to be a bit anti people who pour in and snap up property, not so much the rental crowd but definitely the buying crowd. Of course the average Spanish person won't know at first which category you are in. They don't take to kindly to tasteless Brits wandering around in soccer support gear with lagers at the ready either. Spain outside the tourist traps is still, thankfully, a civilised and traditional place where they take a dim view of loud mouth Brits.

The Spanish has a fairly developed anti-speculation movement. Last year in Madrid they had 20k people on the streets protesting against goverment failiure to curb speculation and build more affordable homes. Spanish people are very confused about how to handle their lives - the stay-at-home-and-save-for-flat-which-costs-about-the-same-as-acouple-of-family-cars life process has been snatched away in the space of a few years. A typical boxy Madrid flat may cost E200k - we're talking multiple 15 times the typical wage. It's the UK situation on steriods.

http://www.viviendadigna.tk/

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This sentence is a contradiction in terms! If you want an investment then don't buy in Spain.

I'm, catching a flight out there this afternoon to see the In-laws who have moved out there on masse. Even considered buying myself a town house in a traditional spanish (not Brit costa) village last year.

Despite it being considerably cheaper than here, comparitavely it's worse. Not only have the Spanish had a boom in these Phil&Kirsty 'esq shows they've also had daft Brits buying in their droves.

I would say if you expect the UK market to dip 10% expect Spain to dip 30%  :o

I predict there will be dozens of Brit Eldorado ghost 'villages' with tumble weeds blowing through in 2010.

Would these villages be called Heldorado or Chavdorado :)

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See the thread below:

http://www.housepricecrash.co.uk/forum/ind...?showtopic=3645

The thread will inform you about the 'Land Grab Laws' (LRAU and its replacement LUV). There are links that will lead you to more detailed information.

To buy property in Spain is very high risk, whether for investment or to live in, because of the land grab laws and because of the risk of a very severe property price crash.

Dear Alfie, I believe that your comment regarding thr LRAU of Valencia is wrong. This is a problem which exclusively affects Valencia and not other parts of Spain.

I agree that buying property in Spain is a risk now because there's a general downslide in prices, same as everywhere else, but that's all. The Land Grab Laws are restricted only to the Community of Valencia.

It's not the right time to buy in Spain now. You should have bought here between 1996-2002. People who bought then have doubled their investment. Prices have soared over 20% per year on the coasts.

Bear in mind that us Spaniards dislike renting properties. We all want to have our own houses, so this contributes to the high demand.

However, I believe there's a huge oversupply at present on the coasts developments, and prices are bound to fall within the next three years or so. We've seen it many times over, it's always the same construction cycle. 4 good years followed by 4 bad ones. There'll be quite afew bank repossessions here, just like in the UK. The Spanish market mirrors the UK's because we are heavily dependant on our UK customers to buy us properties.

So If you have any money now saved up, just keep it stashed in your bank, and wait to catch the next train in 3 or 4 years time. Don't buy now.

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I agree that at present I wouldn't recommend any prospective buyer to acquire a property not only in Spain, even in the UK is not a good idea right now, it's not the right time and they would lose the money for sure.

Wait three or four years until prices have come down, then purchase.

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I have just returned from LaManga - very nice for golf- but what amazes me is that no one seems to check with a currency broker for transfers either way -

they just trust the banks and they are so expensive-

I find Helen at www.4xcurrency.com very helpful - free bank to bank transfer and very good rates- info@4xcurrency.com tell her Dave sent you Cheers

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Spain, Costa del Sol : Save your cash from the crash !

Over the last months I've noticed many cars in the street have been put up for sale. First warning sign that people are running short of cash.

This weekend I've seen for the first time in the last 8 years a reduction in prices listed in two real estate agencies, one in Puerto Banus and one in Marbella city centre.

I've seen a couple of red stickers with the logo "new price" sticked right beside the prior price. In some cases I've seen properties in the range of the 400k euros go down 50.000 euros (more or less 33.500 pounds). That's more than 12 % fall !!! :blink:

As I've posted before, If you have cash, just keep it tucked in your bank for the meanwhile (ie three ot four years to come). it isn't the right time to buy property in Spain or anywhere else for that matter.

At least one real estate company is closing on the Costa del Sol per week.

(EDIT 4th april. Well, that real estate which had the red stickers in Puerto Banus, Oysten Steel, is now closed)

(EDIT 18th april Mooring Properties in Puerto Banus has also closed down).

Edited by Drakan

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:(

Dear Alfie, I believe that your comment regarding thr LRAU of Valencia is wrong. This is a problem which exclusively affects Valencia and not other parts of Spain.

I agree that buying property in Spain is a risk now because there's a general downslide in prices, same as everywhere else, but that's all. The Land Grab Laws are restricted only to the Community of Valencia.

It's not the right time to buy in Spain now. You should have bought here between 1996-2002. People who bought then have doubled their investment. Prices have soared over 20% per year on the coasts.

Bear in mind that us Spaniards dislike renting properties. We all want to have our own houses, so this contributes to the high demand.

However, I believe there's a huge oversupply at present on the coasts developments, and prices are bound to fall within the next three years or so. We've seen it many times over, it's always the same construction cycle. 4 good years followed by 4 bad ones. There'll be quite afew bank repossessions here, just like in the UK. The Spanish market mirrors the UK's because we are heavily dependant on our UK customers to buy us properties.

So If you have any money now saved up, just keep it stashed in your bank, and wait to catch the next train in 3 or 4 years time. Don't buy now.

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