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Spanish Property Prices Free Fall

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  • Spanish Property Prices Free Fall

    Our friends have been unable to sell their house in Spain nearly a year. The seasonal rent they were promised is not there to cover even 25% of the instalment. The last resort is to hand over the keys to bank and walk away. The bank tell you about capital gains now less 20% than 35% still massive loss on sale as paper value was less than paid. What’s more the estate agent you talked previously have closed down and now one man band estate agent takes you to the auction to give you the sale price idea. This is worse than expected. But the agent said sell ASAP as the prices will still go down if you have instalments to pay, otherwise hold on to it for couple of years. They were offered so low in some forums that they will not discuss it any more in forums.

  • #2
    Yep, the Spanish market is on the downturn - we reported on that earlier.

    However, it has to be said when someone is buying an investment property they need to be properly aware of what they are getting into, and look at the risks instead of focusing solely on the rewards.

    Seriously, it's been said many times that people will be cautious about investing a couple of grand on the stock market, but are happy to blow hundreds of thousands on property investment without learning anything about it.

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    • #3
      True that Brian...What I don't understand is that the property problem is hitting every country. Why would it be so difficult to fix and why is it almost global?

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      • #4
        Over selling of easy credit I'm afraid has powered quite an investment bubble - and now it needs to properly deflate to get back to the norm.

        Hope that helps.

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        • #5
          Originally posted by Park View Post
          Our friends have been unable to sell their house in Spain nearly a year. The seasonal rent they were promised is not there to cover even 25% of the instalment. The last resort is to hand over the keys to bank and walk away. The bank tell you about capital gains now less 20% than 35% still massive loss on sale as paper value was less than paid. What’s more the estate agent you talked previously have closed down and now one man band estate agent takes you to the auction to give you the sale price idea. This is worse than expected. But the agent said sell ASAP as the prices will still go down if you have instalments to pay, otherwise hold on to it for couple of years. They were offered so low in some forums that they will not discuss it any more in forums.
          Hi,sorry to hear another horror story,but it was obvious things couldn't last with allthe building going on.the same goes for apartments put up in British cities.Future slums ? i wonder.
          But anyway i feel that the way forward could be property swap sites like property swap shop.Brits can swap back and holiday homes can be gained the other way.
          Joe

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