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Hi all.

My mother owns a property in Spain which has been on the market for some time now. It is not getting any interest, nor selling. She will basically lose out regardless on the value it is up for but she just wants it of her life.

What would happen if she were to walk away from it, let it get repossesed? Because she cannot afford the monthly mortgage on it and it is currently bringing her finances down here in the UK.

Would getting it repossesed effect her in the UK? any advice would be greatly appreciated, we are all very distressed and cannot wait for it to be gone.

thanks.

Nick.

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Hi all.

My mother owns a property in Spain which has been on the market for some time now. It is not getting any interest, nor selling. She will basically lose out regardless on the value it is up for but she just wants it of her life.

What would happen if she were to walk away from it, let it get repossesed? Because she cannot afford the monthly mortgage on it and it is currently bringing her finances down here in the UK.

Would getting it repossesed effect her in the UK? any advice would be greatly appreciated, we are all very distressed and cannot wait for it to be gone.

thanks.

Nick.

Nick,

Can you give a bit more information? For example where is the property, what type of property is it, what percentage is on the mortgage, and which bank is the mortgage with etc.

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Really now?

Perhaps people should have a look at this first.

"Welcome to Orihuela Costa. The Worst Municipality in Spain"

http://www.theolivepress.es/2007/11/12/ama...truction-video/

I bet you don´t show your clients this?

Hilarious - fantastic post Mark!

Maybe Brian should show them this one too:

Perhaps the best time to buy??? Who for Brian, you the agent?

Edited by margesimpson
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Hilarious - fantastic post Mark!

Maybe Brian should show them this one too:

Perhaps the best time to buy??? Who for Brian, you the agent?

Yes, disgusting isn´t it? It's a real shame that greed has destroyed parts of the country in such a way - sadly there are pockets like this everywhere in Spain.

I still can't get my head round why agents want to try and flog their **** on a site like this - absolutely no integrity. I could understand it at 'letsconanotherstupidexpatoutoftheirretirementsavings.com' but here? Asking for trouble!

It reminds me of the old joke someone told me before I came.

Mark, aren't you worried about all the sharks on the Costa del Sol?

No, I'll be fine as long as I stay in the water! :lol:

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Yes, disgusting isn´t it? It's a real shame that greed has destroyed parts of the country in such a way - sadly there are pockets like this everywhere in Spain.

I still can't get my head round why agents want to try and flog their **** on a site like this - absolutely no integrity. I could understand it at 'letsconanotherstupidexpatoutoftheirretirementsavings.com' but here? Asking for trouble!

It reminds me of the old joke someone told me before I came.

Mark, aren't you worried about all the sharks on the Costa del Sol?

No, I'll be fine as long as I stay in the water! :lol:

I don't understand why agents would post on here either - but Brian Rowland posts on numerous boards touting for business, hiding behind the respectability of being a "chartered surveyor" while peddling his "best buys anywhere in Spain".

The man beggars belief.

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The EU market seems to have slowed down everywhere and when this happens opportunities arise

Spain is no different and it is now perhaps the best time to buy

Builders and developers are the same the world over and when a market gets slow they adjust to sell their products

An example is a small urbanisation 5 mins from the beaches of Orihuela Costa All 2 bed maisonettes GF with gardens 30-90 m2 FF with solarium Solar for hot water Communal pool and opposite a new golf course Priced to sell from 104.000 €

As a Spanish home they must be the best buys anywhere in Spain, never mind on Costa Blanca

Built to modern standards and ready Sept 2008

Lots of other similar opportunities

Further thoughts after reading Times today about the growth in USA economy and how it will affect us....possibly EU will make a dash for growth to match them!!!.....reduce interest rates!!!

Dec and Jan are the slowest sale months in Spain and in 2008 this may extend in to Feb so anyone looking for a 'new life style purchase' it is a good time to have a look . make an offer and see how you get on....extras with new builds and a good price with re sales!!

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Dec and Jan are the slowest sale months in Spain and in 2008 this may extend in to Feb so anyone looking for a 'new life style purchase' it is a good time to have a look . make an offer and see how you get on....extras with new builds and a good price with re sales!!

There are bargains to be had in Spain. My neighbour just sold his villa in Denia for 50% less than he paid for it in 2004. He decided that it was best to cut and run. Not a bad investment for somebody.

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There are bargains to be had in Spain. My neighbour just sold his villa in Denia for 50% less than he paid for it in 2004. He decided that it was best to cut and run. Not a bad investment for somebody.

Whereabouts in Denia and how much did he sell it for? And why the fire sale??

The market is stagnant in Denia with some reductions, but 50% loss to cut and run????

PS If he bought in 2004 he probably paid too much for it anyway.

Edited by margesimpson
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There are bargains to be had in Spain. My neighbour just sold his villa in Denia for 50% less than he paid for it in 2004. He decided that it was best to cut and run. Not a bad investment for somebody.

Well one reason could be Denia faces the wrong way - northeast? Why would anyone buy a villa facing this direction. South or west facing is where it's at 'man' :P

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Whereabouts in Denia and how much did he sell it for? And why the fire sale??

The market is stagnant in Denia with some reductions, but 50% loss to cut and run????

PS If he bought in 2004 he probably paid too much for it anyway.

Don't know much about the details. He seemed pleased to be rid of it for some reason. The pics looked nice. Wished I had gone and looked at it myself.

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Whereabouts in Denia and how much did he sell it for? And why the fire sale??

The market is stagnant in Denia with some reductions, but 50% loss to cut and run????

PS If he bought in 2004 he probably paid too much for it anyway.

If you had been on other boards other than "Spanish Property to drop" boards then you would have noticed that Daftboy is a wind up merchant. He just makes things up and this is clearly no different.

Costa Blanca is dropping but prices are on average 5-10% less than they were in 2006.

Personally I dont agree that this is the right time to buy in Spain. I have been trying to buy for the past 4 months now and have had very little luck. I have been outbid or too slow on about 12 properties. Anything in the nice areas is getting snapped up almost immediately.

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Personally I dont agree that this is the right time to buy in Spain. I have been trying to buy for the past 4 months now and have had very little luck. I have been outbid or too slow on about 12 properties. Anything in the nice areas is getting snapped up almost immediately.

Could you give us 1 or 2 examples of prices for areas you were interested?

Which are nice areas in Spain?

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If you had been on other boards other than "Spanish Property to drop" boards then you would have noticed that Daftboy is a wind up merchant. He just makes things up and this is clearly no different.

Costa Blanca is dropping but prices are on average 5-10% less than they were in 2006.

Personally I dont agree that this is the right time to buy in Spain. I have been trying to buy for the past 4 months now and have had very little luck. I have been outbid or too slow on about 12 properties. Anything in the nice areas is getting snapped up almost immediately.

Why on earth would I make things up ? Give me an example. You must have a VI in Spain. You must be the only person on the face of the earth who is continually getting gazumped in Spain. Property getting snapped up immediately ? :lol: Properties in most areas of Spain are dropping like a stone. You have just got to be a EA dealing in overseas property. <_<

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Nick,

Can you give a bit more information? For example where is the property, what type of property is it, what percentage is on the mortgage, and which bank is the mortgage with etc.

Hi again

Apologies for the delay in responding, I have been busy all weekend trying to help sort out the mess my mother is in with it all.

OK basically if you can have patience with me i will explain the situation:-

My mother and father, sister and her husband + 2 kids , my cousin and her husband + 2 kids all get on great and decided to move to Spain to live and work 2 years ago. They loved Nerja (Costa del sol) and together found an ideal place, it contained 3 villas, and a guesthouse.

It is situated on a mountain from Torrox coast towards Competa, and contains 2,000 sq metres of land. the 3 properties are seperately owned and all contain there own land amount. So all 3 families have there own escitura for there property, however they share the same entrance but still keeping there privacy.

My sister bought the one bed villa

My cousin bought the other one bed villa

My mother bought a 2 bed villa, with detached studio on her same land, has sauna, jacuzzi and spent aload of money laying out a further terrace.

Anyway I will not get into everything as I am not trying to sell it (well i am! as it is urgent) but basically, within the move, straight after the sale my father got cancer, since then he died and the dream of them all moving NEVER happened and so they have all been left with properties they spend money on per month for basically nothing, it is a constant outgoing and expense. My mother needs it sold, they cannot maintain them now as they are not living there.

Renting seems stale and hard for the prperties. So we have it up for sale with alot of agents at the moment

What would happen if they were to walk away from the properties??

Altogether it was purchased for 680,00 euro.

My mom has hers up for 320 euro now

and the other 2 for 150 euro each.

go visit : www.fincajacaranda.co.uk

I created this site for the properties recently, for the agents to get access to location and images and a PDF doc about properties.

This is already at a loss and may need to drop again, so i am thinking well if they wont make much then what is the consequences of walking?? can anybody help. It is difficult, my dad was always on the ball for this stuff and would have a plan, my mom dosent know what she is doing and i am just starting to understand!

Thanks

Nick

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Hi again

Apologies for the delay in responding, I have been busy all weekend trying to help sort out the mess my mother is in with it all.

OK basically if you can have patience with me i will explain the situation:-

My mother and father, sister and her husband + 2 kids , my cousin and her husband + 2 kids all get on great and decided to move to Spain to live and work 2 years ago. They loved Nerja (Costa del sol) and together found an ideal place, it contained 3 villas, and a guesthouse.

It is situated on a mountain from Torrox coast towards Competa, and contains 2,000 sq metres of land. the 3 properties are seperately owned and all contain there own land amount. So all 3 families have there own escitura for there property, however they share the same entrance but still keeping there privacy.

My sister bought the one bed villa

My cousin bought the other one bed villa

My mother bought a 2 bed villa, with detached studio on her same land, has sauna, jacuzzi and spent aload of money laying out a further terrace.

Anyway I will not get into everything as I am not trying to sell it (well i am! as it is urgent) but basically, within the move, straight after the sale my father got cancer, since then he died and the dream of them all moving NEVER happened and so they have all been left with properties they spend money on per month for basically nothing, it is a constant outgoing and expense. My mother needs it sold, they cannot maintain them now as they are not living there.

Renting seems stale and hard for the prperties. So we have it up for sale with alot of agents at the moment

What would happen if they were to walk away from the properties??

Altogether it was purchased for 680,00 euro.

My mom has hers up for 320 euro now

and the other 2 for 150 euro each.

go visit : www.fincajacaranda.co.uk

I created this site for the properties recently, for the agents to get access to location and images and a PDF doc about properties.

This is already at a loss and may need to drop again, so i am thinking well if they wont make much then what is the consequences of walking?? can anybody help. It is difficult, my dad was always on the ball for this stuff and would have a plan, my mom dosent know what she is doing and i am just starting to understand!

Thanks

Nick

Hi Nick,

I´ve looked through all your information and I´m assuming that everything is genuine and above board so I am happy to give my opinion from my experiences here.

Firstly, I´d better make it clear that I´m not an agent, I have no interest in making any financial gain from you or any advice that I may give and I certainly don´t want to buy it myself. Besides, I´ve got enough problems trying to get rid of a flat that I no longer want!

Right then. My first observation is concerning the location. While for me it´s a little isolated, it would concern me about having all that spare undeveloped land around me. Do you know if there are any plans to build a new motorway, other homes, or any other constructions in the area in the near future as this could affect peoples interest?

Secondly, you do have a lot of work to maintain a property of this size and I'm sure you've found out by now that renting property out here is a complete nightmare even if you live elsewhere in Spain. Even if you can find a relatively honest agent you can never be sure that they are completely looking after your interests, so I imagine that given your current situation, renting the property out is not an option.

Thirdly, from the pictures, I would imagine it would be difficult to sell them separately due to people requiring their own access/privacy. You've also mentioned the prices of the property, but you don't mention how much is your family money and how much is borrowed. While I don't expect you to put too many financial details on an internet forum, the percentage you have invested may influence your decision whether to cut and run. And, is any borrowed money from UK or Spanish institutions as the rules concerning repossession etc could vary significantly?

Finally, do you have a good English speaking lawyer here? Have you spoken to him about your situation and the impact of any decisions you may make?

MIS

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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

I think from recent information I have seen Spain is one of the worst buy to let markets in the World let alone Europe.

High prices of properties, that are coming off thank good ness.

Non resident rental tax high

Not that many if any interest only mortgages in the market, ie. expensive mortgages.

Low rental demand.

People can talk it up, but no buy to let in Spain is a real dog market. Then you have running costs, wealth tax etc etc, Really bad BTL market, avoid in my opinion. There are much better deals globally than Spain.

Great place to retire though.

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I think from recent information I have seen Spain is one of the worst buy to let markets in the World let alone Europe.

High prices of properties, that are coming off thank good ness.

Non resident rental tax high

Not that many if any interest only mortgages in the market, ie. expensive mortgages.

Low rental demand.

People can talk it up, but no buy to let in Spain is a real dog market. Then you have running costs, wealth tax etc etc, Really bad BTL market, avoid in my opinion. There are much better deals globally than Spain.

Great place to retire though.

Most buyers are looking for a retirement home , winter home to live part time or holiday home and you are quite right...Spain is a great place to do this....perhaps the best!

And because it is and the population of the northern EU is ageing all the time the demand from this type of purchaser in the long term will increase

Naturally the growth of the EU economy overall dictates the effective demand at any one time but long term anyone buying now will do OK besides enjoying their life in the meantime!!

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http://www.rte.ie/business/2008/0117/spain.html

"Half of Spain's estate agencies closed in 2007

Thursday, 17 January 2008 13:10

Half of Spain's estate agencies closed their doors last year amid a sharp downturn in the sector, according to figures from the nation's main estate agents' association API. Of the roughly 80,000 estate agencies that existed at the beginning of 2007, only 40,000 have survived the slump in sales, the figures show. "

BrianR do you really think that a '2nd hand car salesman's' type concept such as 'lifestyle' is really going to stop and reverse the property price crash that is now in full motion in Spain (particularly the Costas), and sort out the situation of vast over-supply of empty unsaleable flats, villas and terrace house that are of very poor quality?

You must be truly desperate to be trying to drum up business on this website.

Have you read the research papers that document the high levels of alcoholism and mental health problems amongst British expats on the Costas? Many turn to drink, become depressed, etc. because they are cut off from the community (don't learn Spanish and/or the local dialect + live on the sides of mountains with no shops or other community facilities), and are cut off from their families and life long friends. Boredom is another major factor in the high incidence of drink and mental health problems. Research also demostrates that expats, particularly the older people, tend to suffer from illness more frequently and for longer due to not accessing health facilities in Spain - this is not due to bad health facilities in Spaiun but rather a reluctance to access the health care available, or indeed lack of knowledge how to - again language is a major factor here. Research also shows that people run into money prolems because of the British pension rules for people living overseas.

In the last 2 to 3 years British expats that have decided to sell up and return to the UK from Spain have found that they cannot do so. Why? Because of the vast over-supply of property in Spain and falling demand and falling prices they are unable to sell - and this is combined with the knowledge that if they do manage to sell the property in Spain they will not be able to afford very much in the way of property in the UK and will see their quality of life take a massive nose-dive.

Yep, the concept of 'lifestyle' will save the day!

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Naturally the growth of the EU economy overall dictates the effective demand at any one time but long term anyone buying now will do OK besides enjoying their life in the meantime!!

What about 2009 or 2010? Prices will be 20%-30% cheaper by then in good location and probably 50% in places you advertise.

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Many members of my family live in Spain (South of Barcelona). Property has been a dinner table topic for the last 6 or 7 years, however, views expressed have really changed of late with everyone noticing a decline of prices. It's not that surprising either given the sheer volume of building which has been going on over the last few years.

The fact is that nobody who I know is expecting the value of Spanish property in that area to increase in the short to medium term. Yes, Spanish property may be a good long term investment, but even if it is, why buy now? Given the inevitable sharp dip which the market is embarking on surely the best policy is to wait a couple of years. Yes, you miss out on use of the property, but the volume of rental properties available means that holiday villas can be rented for very reasonable prices in the meantime.

Yes, you could buy now and make money in 20 years, or you could wait a few years and potentially make a whole lot more money.

Brian, with all due respect, are you unware of the oversupply situation in Spain? Or do you have a vested interest in seeing demand increase?

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Nothing but bad news coming out of Espana.....

SPANISH SLOWDOWN DEEPENS, RECESSION FEARED

by Andrew Hay

Spain was hit by a wave of bleak economic news on Tuesday, five weeks before national elections, and economists feared the euro zone’s fourth-largest economy might fall into recession now a housing boom is over.

Spain’s real estate-driven services sector, which powers over 70 percent of the economy, suffered its sharpest ever fall in activity during January, a survey showed.

Consumer confidence also fell to a record low in January as inflation hit a 12-year high, existing house prices fell and unemployment claims rose more sharply than during any month on record, according to Spain’s public credit agency.

Capping bad news for the Socialist government was data showing industrial output suffered its sharpest fall in 5-1/2 years during December as house sector woes spread into the rest of the economy.

Spain’s Ibex blue chip stock index fell around 4 percent as investors cut positions in firms like fashion retailer Inditex and construction company ACS, exposed to weaker consumer spending and private investment.

“At this point the risk of a recession is significant,” said Veronique Riches-Flores at Societe Generale.

“The Spanish situation begins to have increasing influence on the euro zone and the European Central Bank, reinforcing our forecast the ECB will have to ease its policy in coming months.”

ROUGH RIDE AHEAD

Of most concern to economists was a fall in the Purchasing Mangers Index (PMI) for Spanish services to a record low of 44.2 from 51.0 in December, marking the sharpest fall since the survey began in 1999.

“This makes absolutely dreadful reading,” said Chris Williamson, chief economist at NTC Research, adding that financial and consumer services and anything connected with construction and the property market were the worst performers.

“I’m amazed. I’ve never seen anything like this and I would think the economy is in for a very tough ride on the basis of these figures,” said analyst Jose Zarate at 4Cast in London about the fall in the PMI.

The rapid deterioration of Spain’s economy worries European policy makers as it drives around 11 percent of euro zone economic growth and created 40 percent of new jobs in the European Union between 2004 and 2007.

With an election imminent, Socialist Prime Minister Jose Luis Rodriguez Zapatero regularly rejects talk of a crisis and says Spain is protected by a high public sector budget surplus that can be spent if necessary to keep growth above 3 percent.

Economy Secretary David Vegara said he was not worried by the data.

“When the economy was growing at 4.1 percent in June we forecast growth for the following year at a rate a percentage point lower, so we were giving a clear indication of the tendency,” Vegara told reporters.

Private sector economists have cut their growth forecasts towards 2 percent as the economy struggles to offset a slump in construction investment and consumer spending.

The Socialists have a lead of 4-6 percentage points in most opinion polls, but the conservative opposition has now seized on the rapid economic deterioration as its main campaigning point.

Spain’s problems accompany fears of a recession in Italy and slowing growth in Portugal and could pressure the ECB to cut rates to avoid a crisis spreading across southern Europe, said David Brown, chief European economist at Bear Stearns.

“The ECB should be tipping the policy pendulum to easier interest rates a lot sooner than expected,” said Brown.

Spaniards openly talk of a crisis as they pay higher mortgage costs on homes that, according to property website Facilisimo.com, lost one percent of their value last month.

Not all sectors are affected but practically everyone knows someone who is suffering.

“Our sales still haven’t suffered from the crisis, but we’ve seen it hit customers,” said Jesus Lopez Gago of bookshop chain Booksellers, adding that big banks and other firms are cutting staff training.

http://www.chronicle.gi/readarticle.php?id...tar%20Chronicle

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Concerns over Spanish government's housing rescue plan

By Ambrose Evans-Pritchard, International Business Editor

Last Updated: 1:43am GMT 05/02/2008

The Spanish government is reportedly considering a rescue package to "refloat" the housing market and slow job losses in the construction sector, raising concerns over investor appetite for the country's sovereign bonds.

Premier Jose Luis Zapatero is eyeing the Public Credit Institute for a €10bn (£7.5bn) credit line to help developers and homeowners weather the squeeze following the partial closure of the capital markets, according to the financial daily Expansion.

The Credit Institute is an arm of the Spanish treasury, used to promote technology and green energy.

The government has also proposed a tax rebate of up to €400 per person, comparable in scale to the new fiscal package proposed by George W Bush in the US.

The bail-out scheme has caused a serious rift in the ruling Socialist party. Finance minister Pedro Solbes has reportedly warned that use of public funds could cause markets to reassess Spain's credit-worthiness, triggering a further rise in spreads between Spanish and German 10-year bonds.

The Zapatero government is holding a series of meetings with key property and construction groups to discuss the scheme, which would reportedly involve loans rather than direct subsidies. However, even this could fall foul of EU state aid rules.

Pedre Perez, head of the Spanish G-14 property trade group, said the reports of a state bail-out were untrue. "We do not reveal who we talk to but we are not asking the government for a rescue. No such thought would cross our minds. Commercial property is still doing magnificently. This can be resolved by market forces."

Bond spreads have already widened from four to 20 basis points since June. BNP Paribas said they may jump to 60 basis points this year as the boom deflates and investors take a closer look at Spain's current account deficit, near 10pc of GDP.

Spreads have risen even further on Italian bonds since the collapse of Romano Prodi's government, settling at 37 basis points yesterday. Investors fear months of political turbulence and backsliding on economic reforms. While the rise in debt costs for the two countries poses no threat to state finances, the spreads are nearing levels not seen since the launch of the euro.

Spain has a better debt profile, but faces a more immediate threat, after unemployment jumped 132,000 in January, the sharpest one-month rise in a decade. Car sales were down 12.7pc.

Jean-Michel Six, Europe economist at Standard & Poor's, said Spain is now clearly in the grip of a severe downturn. "House prices peaked in June and are now falling month on month. The construction sector is 12.6pc of GDP, the highest in Europe. Even so, Spain has a nice fiscal surplus so we don't think there is any threat to its rating unless something really awful happens," he said.

Expansion reported that Mr Zapatero is determined to avoid the collapse of a major developer before the elections on March 9. The property groups Llanera and Ereaga have both suspended debt payments, while the share price of developer Astroc is down 96pc this year.

http://www.telegraph.co.uk/money/main.jhtm.../cnspain105.xml

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  • 442 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% +
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      • up 5%



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