# When is a good time to consider buying property



## feo (May 5, 2013)

Hi we live in Caceres, and have being looking to purchase a home on and off for the last 4 years. My husband has been holding off as he worried the property market had not bottomed out and we will most likely not stay here long-term. I am rather tired living Ina rental with two young kids and would like to put down some roots. The prices of homes have been dropping but I don't know if it is enough. Can anyone advice me on when is a good time to buy or what are some guidelines in negotiating prices. Are there websites which list home sale prices? I would like to know the average differences.

Thanks,
Fiona


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## maxd (Mar 22, 2009)

http://www.idealista.com/venta-viviendas/caceres-provincia/


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## mickbcn (Feb 4, 2013)

I saw the prices of the houses in Caceres...and ... here in Barcelona province you can find cheaper houses and flats..Barcelonaaaaa. not Caceres ( I think is where Jesus loose his shoes as we say here).


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## Chopera (Apr 22, 2013)

If we could predict the bottom of markets then we'd all be millionaire's ;-) I personally think that places like Caceres have at least a year of falls to go, and even then the market will trundle along the bottom for several years. There is no hurry. At the end of last year the government got rid of an important tax rebate on mortgage repayments and I doubt that has worked its way into the market yet. That and the fact that the economy is getting worse of course means that you should take as long as possible to get your purchase right. Remember that buying property in Spain is expensive and once you have bought, it may take years to sell if you suddenly change your mind.

Unfortunately you can't find out what prices houses are actually selling for, the Spanish land registry won't publish them. Idealista and Fotocasa publish indices based on asking prices, and the TINSA index tends to be out of date. So my advice would be to spend the next year looking at houses, tracking what's happening on idealista and trying to build up your own idea of what the market is like in Caceres. If you see properties selling then you can assume the asking price is closer to the market price. When it comes to making an offer don't be shy. I know people in Madrid who have bought at 60% of asking price. People are desperate, and the Spanish property market is very opaque.


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## Leper (May 12, 2010)

Bargains are there to be picked up now. But, why buy? - You can rent a decent centrally located two bedroom residence for €500 per month.


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## Megsmum (Sep 9, 2012)

feo said:


> Hi we live in Caceres, and have being looking to purchase a home on and off for the last 4 years. My husband has been holding off as he worried the property market had not bottomed out and we will most likely not stay here long-term. I am rather tired living Ina rental with two young kids and would like to put down some roots. The prices of homes have been dropping but I don't know if it is enough. Can anyone advice me on when is a good time to buy or what are some guidelines in negotiating prices. Are there websites which list home sale prices? I would like to know the average differences.
> 
> Thanks,
> Fiona


hi

we are visiting Exremadura with a view to buy in September


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## Megsmum (Sep 9, 2012)

mickbcn said:


> I saw the prices of the houses in Caceres...and ... here in Barcelona province you can find cheaper houses and flats..Barcelonaaaaa. not Caceres ( I think is where Jesus loose his shoes as we say here).


that surprises me as i thought this was one of the poorer regions in Spain?


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## NickZ (Jun 26, 2009)

All I know is some of the places on my watch lists have gone up in asking price. These are places that have been for sale since the ark was brand new. My guess is somebody thinks with beach/vacation season they'll be able to convince a tourist to over pay.

But in general the answer is when you find something you like at a price you can afford. Worrying that the price might go up/down tomorrow doesn't do you much good. If you find a dream home then jump. If all you find are nightmares then wait.

If somebody else buys your dream do you care that your second choice will be cheaper next year?


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## Megsmum (Sep 9, 2012)

NickZ said:


> All I know is some of the places on my watch lists have gone up in asking price. These are places that have been for sale since the ark was brand new. My guess is somebody thinks with beach/vacation season they'll be able to convince a tourist to over pay.
> 
> But in general the answer is when you find something you like at a price you can afford. Worrying that the price might go up/down tomorrow doesn't do you much good. If you find a dream home then jump. If all you find are nightmares then wait.
> 
> If somebody else buys your dream do you care that your second choice will be cheaper next year?


I agree with this for us house prices are low enough for us to have a choice the main issue imho is not the house it is the area, once you have chosen an area the house will follow.


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## Chopera (Apr 22, 2013)

NickZ said:


> ...
> 
> But in general the answer is when you find something you like at a price you can afford. Worrying that the price might go up/down tomorrow doesn't do you much good. If you find a dream home then jump. If all you find are nightmares then wait.
> 
> If somebody else buys your dream do you care that your second choice will be cheaper next year?


I'm sorry but worrying that the price of Spanish property might go down has saved me at least €200k over the last 10 years. Your advice might have been acceptable back in the 90s but it's a completely different market now. Prices have dropped by roughly 50% from peak (although this of course depends on the location) and they are not going up any time soon. However asking prices have not gone down at the same rate so buyers need to take extra time and care to make sure they are negotiating a good deal. This means being prepared to walk away from properties they both like and can afford. The nature of Spanish property means that even if you miss out on something you like now, something similar (if not better) will usually be available soon.


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## doro (Aug 1, 2010)

Buy the house you feel will be your home.

Be sure you chose the right place. I did that mistake some years ago, then I realized is not what I wanted, and I have to move. I've sold it after a 2 years.

Think whats better for your kids also, for the future. I also want to buy, but in the same time, I realize a house will keep me to a place. So I prefer to rent for the moment. But I am free to move anywhere with out making to many worries.

Do some research before. A good time to buy is when the prices start to go up a little. That means the market is relative stable. Right now, prices are going down. Of course if you find the dream home, buy it now, don't wait to be sorry you didn't.


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## Guest (May 12, 2013)

doro said:


> Do some research before. A good time to buy is when the prices start to go up a little. That means the market is relative stable. Right now, prices are going down. Of course if you find the dream home, buy it now, don't wait to be sorry you didn't.


Another sign to watch is if banks are lending and at what rate... the rates will begin to rise when the banks see an opportunity to gain financially. In fact, this will happen at the beginning of any rise in prices, far sooner than the average buyer will notice in the market. Lenders are VERY attuned to movements in the real estate marketplace.

The upside for you is that the market has fallen dramatically - "the upside" in the sense you are not entering a high point only to watch the properties value depreciate enormous amounts. Yes, what you buy now may depreciate, but at a significantly less amount than the last 5 years & within a few years the property may well begin to rise in value & all that time you'll have a home.

I also suggest you not be trapped by selecting only one property. Find 3 and begin negotiating, informing the agents that you are looking at various properties ... buying has a large psychological component and if you are perceived as having a high interest in a property, that will be used against you. Enter the buying process with an attitude "well, if not this one then another".


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## Chopera (Apr 22, 2013)

Personally I'm not going to wait for any signs that the market is picking up. For a start there is no way of knowing when the market is picking up until about a year after it has done so (sales prices aren't published in Spain, and the other indices are way out) and secondly you could find yourself waiting an awful long time while it trundles along the bottom. If I bought in 2014 and then 5 years later I found out prices were another 5% lower then I'd be happy I had bought in 2014. Now that most of the price drops have already occured it is much more important to gain an understanding of what represents a good price and being able to negotiate a good deal.


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## doro (Aug 1, 2010)

Chopera said:


> Personally I'm not going to wait for any signs that the market is picking up. For a start there is no way of knowing when the market is picking up until about a year after it has done so (sales prices aren't published in Spain, and the other indices are way out) and secondly you could find yourself waiting an awful long time while it trundles along the bottom. If I bought in 2014 and then 5 years later I found out prices were another 5% lower then I'd be happy I had bought in 2014. Now that most of the price drops have already occured it is much more important to gain an understanding of what represents a good price and being able to negotiate a good deal.



As I said, if you find your dream home, go for it.


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## Pazcat (Mar 24, 2010)

In the areas we are looking in prices are already pretty low, so if we bought at 90K and the year later it was 80K then really it's not that great of a hit although seeing as it will be a family home $ value is less important to start with. It's not about the bottom line for us although for others it's different, we all have different motives I suspect.
From what I can tell is a very large percentage of the homes in the area we are looking are at or very close to their bottom price, if they don't sell I doubt they will be given away but I can't see them being sold for 30K either.

I have no doubt that the prices will continue to fall but this will probably be led by those who refuse to put their homes at a competitive market price right now and not the many houses that can't fall much lower, and by competitive I mean grossly undervalued.
I can understand people holding out, I would do the same but a tipping point must come eventually.

I would say now is as good a time as any but don't rush into it, it's certainly better than buying back in Oz right now which has a similar looking housing curve as Spain once did. 
We are giving ourselves a year(give or take) to find the right place and even then it's doubtful our first offer is going to be anywhere near the ticket price. I would still proceed cautiously and be as well researched and prepared as you can be.
And of course it all depends on exactly what it is you are after and where.


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## doro (Aug 1, 2010)

mysticsmick said:


> Yes, what you buy now may depreciate, but at a significantly less amount than the last 5 years & within a few years the property may well begin to rise in value & all that time you'll have a home.


THIS is very hard to predict. The prices can go down even more that you expect. You have to look at many factors what can influence this, politics, global situation, euro problems, etc. And even you think you know all factors there are still elements of surprise.


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## redbourn (May 8, 2013)

Not now!

A friend of mine just sold a house. 

He bought it several years ago and it increased in value but then started to drop and his tenants wanted to pay less.

Prices will continue to drop for at least another couple of years.

I'm thinking of moving to Spain soon because new rentals will be so low; that and for other nicer reasons of course.

Just my opinion of course and not written in stone.

Michael


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## feo (May 5, 2013)

We spoke to a realtor and she said the houses owned buy the bad banks are priced out of the market. I didn't quite understand why it seems idiotic as I thought the goal of creating the bank was to liquidate these properties. Anymore insight into this would be wonderful. It is rather frustrating that people are not realizing the economic situation in this country.


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## mrypg9 (Apr 26, 2008)

Chopera said:


> Personally I'm not going to wait for any signs that the market is picking up. For a start there is no way of knowing when the market is picking up until about a year after it has done so (sales prices aren't published in Spain, and the other indices are way out) and secondly you could find yourself waiting an awful long time while it trundles along the bottom. If I bought in 2014 and then 5 years later I found out prices were another 5% lower then I'd be happy I had bought in 2014. Now that most of the price drops have already occured it is much more important to gain an understanding of what represents a good price and being able to negotiate a good deal.


The right time to buy a house to live in is simply when you find a property you like at a price you can afford and are willing to pay. In the end that's what happens anyway.

If you are buying as an investment then other factors come into play.

People often forget that 'price' and 'value' are not one and the same thing.


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## thrax (Nov 13, 2008)

If you are buying a house as an investment now is definitely not the right time to buy. If you are buying a house as a home with no regard for financial gain then find the right house, haggle and buy it. One of the reasons poorer areas have houses which are higher than you might expect is because people are poor and are trying to get as much out of the property as they can without being realistic. And you have to couple that with any mortgages they may have on the property which might mean they have little choice but to keep the price artificially high.


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## Filsh (Apr 8, 2013)

If you are buying as an investment the best time to buy is when property prices are climbing, and not dropping as they are at the moment. But if you see something you can afford and want to have as a home then I agree with others here and go for it; plus if for example the advertised price is 100k and you feel that prices in your area will drop by another 10% then why not offer 90k? Worse that can happen is the vendor says no and you buy at advertised price.


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## mrypg9 (Apr 26, 2008)

Filsh said:


> If you are buying as an investment the best time to buy is when property prices are climbing, and not dropping as they are at the moment. But if you see something you can afford and want to have as a home then I agree with others here and go for it; plus if for example the advertised price is 100k and you feel that prices in your area will drop by another 10% then why not offer 90k? Worse that can happen is the vendor says no and you buy at advertised price.


Property is an investment only if you intend to rent or sell at some point and generte either income or a capital gain which may or may not be taxed according to circumstances.


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## Sirtravelot (Jul 20, 2011)

Fitch: El precio de la vivienda sigue 'significativamente sobrevalorado' en Espaa | Vivienda | elmundo.es

According to this, not until after 2014.

Prices will not increase for a long, long time.

I think the best plan is to find out where you definitely want to live, let the people know you have the money to buy, make a cheeky offer, if they reject you, that's fine. Plenty of other fish in the sea, sand on the beach, houses in Spain.

EDIT: Here is another interesting website: http://casas.facilisimo.com/preciometro/


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## Chopera (Apr 22, 2013)

mrypg9 said:


> Property is an investment only if you intend to rent or sell at some point and generte either income or a capital gain which may or may not be taxed according to circumstances.


Property is as much an investment as putting money into a savings account.


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## doro (Aug 1, 2010)

Sirtravelot said:


> EDIT: Here is another interesting website: Evolución del precio de la vivienda en España


This seems to be realistic. However, I know some property's one year ago at 300k and today 100k or less. That's after 1 year.

I think who still keep price up are peoples who took property's with bank loans, and they can't afford the loss. Otherwise, I do not see any reason why to not sell as fast as possible. You property value is decreasing every month.


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## Dunpleecin (Dec 20, 2012)

If you are buying a home, now is a great time. So what if there is a bit more falling to do, If you're renting and spending €6000 a year for no return there comes a point where you are throwing good money after bad. At least if you own your own place what you are putting in is yours. People buy cars all the time and yet they go down in value more than anything. Why are people so touchy about houses?

Buy a house you like and that you will settle in and in a few years you will have a big smile on your face knowing that A) you got it at a good price to start with and B) it's value will have increased.


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## Dunpleecin (Dec 20, 2012)

doro said:


> This seems to be realistic. However, I know some property's one year ago at 300k and today 100k or less. That's after 1 year.
> 
> I think who still keep price up are peoples who took property's with bank loans, and they can't afford the loss. Otherwise, I do not see any reason why to not sell as fast as possible. *You property value is decreasing every month.*


That's a ridiculous statement. By that logic houses will be free in a few years time. That's not going to happen is it?


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