There has been a massive oversupply of new developments in Spain – developers started slashing prices last year and now it’s getting even worse for them (I hear ‘up to 50%’) ..
However although Spanish property continues to fall, what you can sell your UK house for is also falling ….
Ideal would be to ‘lock in’ your UK sale now and then start looking for a Spanish bargain .. (maybe rent out there for 6 to 12 minths whilst searching ?)
NB. I think it would be fair to say there is no chance of making any sort of profit from a Spanish property until the UK market takes off again .. and the Banks / Building Societies start lending again … and people with sufficient equity regain their confidence that prices ‘can only go up’ .. and start buying ’second homes’ again ..
That is likley to take 5 or more years
If your focus is “where would be a good place to live for the next few years”, then Spain could well be your answer PROVIDED that you go out and shop around for a bargain.
Under Spanish Law, if you change your mind between their equivalent of exchange and completion, you get hit for 20% of the purchase price as a forfeited deposit. We’re hearing of more instances of people doing this – they agree to buy, and within a month work out they’d be better off by shelling out 20% to get out of the deal.
In terms of going up – don’t hold your breath. The market has been help up by overseas buyers – the German tax-treaty signed a couple of years ago stalled the Germans, and now the UK economy is meaning that fewer Brits are buying.
Don’t overestimate your chances of letting out – there are, in the average week, THOUSANDS of vacant properties chasing a few tenants – unless you get something in a PRIME location, and work very hard at marketing it, you won’t get the income.
Sorry to sound so down on the idea – but please make sure that you are thinking of lifestyle and not profit if you’re buying in Spain at the moment.
October 27th, 2009 at 4:21 pm
There has been a massive oversupply of new developments in Spain – developers started slashing prices last year and now it’s getting even worse for them (I hear ‘up to 50%’) ..
However although Spanish property continues to fall, what you can sell your UK house for is also falling ….
Ideal would be to ‘lock in’ your UK sale now and then start looking for a Spanish bargain .. (maybe rent out there for 6 to 12 minths whilst searching ?)
NB. I think it would be fair to say there is no chance of making any sort of profit from a Spanish property until the UK market takes off again .. and the Banks / Building Societies start lending again … and people with sufficient equity regain their confidence that prices ‘can only go up’ .. and start buying ’second homes’ again ..
That is likley to take 5 or more years
October 27th, 2009 at 4:25 pm
If your focus is “where would be a good place to live for the next few years”, then Spain could well be your answer PROVIDED that you go out and shop around for a bargain.
Under Spanish Law, if you change your mind between their equivalent of exchange and completion, you get hit for 20% of the purchase price as a forfeited deposit. We’re hearing of more instances of people doing this – they agree to buy, and within a month work out they’d be better off by shelling out 20% to get out of the deal.
In terms of going up – don’t hold your breath. The market has been help up by overseas buyers – the German tax-treaty signed a couple of years ago stalled the Germans, and now the UK economy is meaning that fewer Brits are buying.
Don’t overestimate your chances of letting out – there are, in the average week, THOUSANDS of vacant properties chasing a few tenants – unless you get something in a PRIME location, and work very hard at marketing it, you won’t get the income.
Sorry to sound so down on the idea – but please make sure that you are thinking of lifestyle and not profit if you’re buying in Spain at the moment.