# Food for thought



## Xose (Dec 10, 2008)

What to do?

Buy a house in Spain where the market, although not bottomed out yet, in some sectors may well have done. Thus buying a villa at some 25% - 30% or so cheaper than some months ago? - BUT thus consolidating a 40%+ drop in the Pound 

Or wait a while. Even if prices do go up a bit, if the pound recovers even some of its drop, surely it'll make up for a small increase in property? - AND you'll have the extra luxury of verifying a returning market... rare advantage in investments these days.

This is just a thought provoker for anyone with UK generated revenue thinking of buying in Spain at the moment. 

I'm not for one minute suggesting that one should not buy. It could be that house prices increase in Spain (I doubt flats and appartments will for a LONG time yet) and the pound drops further. But I think it more likely that it'll go the other way in both cases.


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## jojo (Sep 20, 2007)

Xose said:


> What to do?
> 
> Buy a house in Spain where the market, although not bottomed out yet, in some sectors may well have done. Thus buying a villa at some 25% - 30% or so cheaper than some months ago? - BUT thus consolidating a 40%+ drop in the Pound
> 
> ...


I´m in this dilemma!! I´m thinking of buying... well I´m thinking of moving, maybe rent, maybe buy, maybe rent to buy?? I´ll be using sterling.... You also have to take into account the mentality and concerns of the vendor who, if they are planning to go back to the UK then they´re just as "up in the air"!!!!

I´m gonna just keep looking until I see something that "hits" me!?

Jo


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## Xose (Dec 10, 2008)

jojo said:


> I´m in this dilemma!! I´m thinking of buying... well I´m thinking of moving, maybe rent, maybe buy, maybe rent to buy?? I´ll be using sterling.... You also have to take into account the mentality and concerns of the vendor who, if they are planning to go back to the UK then they´re just as "up in the air"!!!!
> 
> I´m gonna just keep looking until I see something that "hits" me!?
> 
> Jo


I sympathise Jo. Not the best of situations to be in. On the other hand, the vendor does have the HUGE advantage of making up for the loss of the Spanish market with the value of the Euro. 

They sell for 500K€ and convert to about £460K. 

Had they sold two years ago for 650K€ they would have gone back with about £460K.

This could work in your favour if you negotiate the above logic and ask for a drop in price. After all, the Pound/Euro is protecting them against most of the loss of the Spanish market!

Good luck.


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## jojo (Sep 20, 2007)

Xose said:


> This could work in your favour if you negotiate the above logic and ask for a drop in price. After all, the Pound/Euro is protecting them against most of the loss of the Spanish market!
> 
> Good luck.


What works for them doesnt for me!! At the end of the day, I want to live in Spain, I want to buy here either now or eventually, its not really about money or investment, its about getting the best property I can for the ammount of money I can spend.

I´m glad I´ve rented for the last year or so as its given me the chance to see whether I like it here and what I really want bgoth location wise and house wise.... and I´m still not sure LOL. I´ll keep looking and hopefully the right one will come along!!!

That said, I did see one I cant stop thinking about the other day, but it had only just gone on the market, they werent in a hurry and they were maybe being a little optimistic regarding the price??????... maybe???

Jo


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## SunnySpain (Jul 30, 2008)

jojo said:


> I want to buy here either now or eventually, its not really about money or investment, its about getting the best property I can for the ammount of money I can spend.
> 
> I´m glad I´ve rented for the last year or so as its given me the chance to see whether I like it here and what I really want bgoth location wise and house wise.... and I´m still not sure LOL.
> Jo



Its your decision, but I would be tempted to wait a good while yet. Maybe it would be a wise thing to see how the prices go in your chosen area in the next 6 months
and remember than come the winter its easier to pick up a bargain.

Yesterday, I was very surprised to hear that prices have actually fallen quite dramatically in Asturias in the last 8 months - down between 8% and 20%

Construction in these parts has hardly dropped off at all, considering what has happened in much of the South and they had been claiming that prices had not altered much, but clearly something has changed in the last 8 months.

So if prices are down 8%-20% here, then I imagine the South is due another drop in the next 6-12 months or so - well thats my story and I'm sticking to it

Lol

Dave


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## Meter Mike (Apr 18, 2009)

I personally think that prices in Spain have further to fall than the UK. Purely from the over-supply point of view.

Probably the best time to consider buying will be at the end of this year as I think most of the bad news Spain is hiding under the carpet will have to come out by then.

If the Euro weakens by the end of the year, then it will make things even better for the buyer.

If you are buying a long-term family home then it really doesn't matter when you buy as in the long term all property will increase.

Mike.


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## jojo (Sep 20, 2007)

Meter Mike said:


> I personally think that prices in Spain have further to fall than the UK. Purely from the over-supply point of view.
> 
> Probably the best time to consider buying will be at the end of this year as I think most of the bad news Spain is hiding under the carpet will have to come out by then.
> 
> ...


I agree with you on this Mike, I´m looking now, but I think theres more to come out yet! although the pound seems to have taken a small hammering this afternoon - the budget and the IMF I guess!!?, but I´m predicting/guessing that there will be a downturn for the euro in the not too distant future, I think in may they´re gonna have to lower their interest rates and hopefully by then the pound and the UK will show signs of recovery.... and I´ll be happy!!?

Jo


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## Buenosdiaspet (Feb 13, 2009)

Yes this is our position entirely. Currently sitting tight renting both ends, waiting to see what happens in two housing markets and also the exchange rate (as earning in sterling) - very confusing. We have two young children and want them to have a place called 'home' that is permanent and long term, but want to make the right move at the right time. It's so difficult. Combined with the fact that borrowing in both markets will be considerably harder than it ever was, and I am not sure that will/should ever return to how things were 12 months ago...

BDP


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## jojo (Sep 20, 2007)

Buenosdiaspet said:


> Yes this is our position entirely. Currently sitting tight renting both ends, waiting to see what happens in two housing markets and also the exchange rate (as earning in sterling) - very confusing. We have two young children and want them to have a place called 'home' that is permanent and long term, but want to make the right move at the right time. It's so difficult. Combined with the fact that borrowing in both markets will be considerably harder than it ever was, and I am not sure that will/should ever return to how things were 12 months ago...
> 
> BDP


exactly the same postion as me!!!!!!! 

Jo xx


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