I have had it said that I am in denial by some and have my head in the sand (Ostrich head comes to mind)
when I try to put forward views that at try to balance out many of the negative postings regarding Spanish Property..
The majority on this forum are a lot more intelligent than I am with the in depth knowledge of history and facts and figures but I try to keep life as simple as possible.
It’s very interesting at times to how many view their situation and how bad the forecasts are with reports on property crashes and evidence? Going back to 1921 looking at everyway to look try to forecast the future.
Many view the future as very bad however as far as my situation with say my property on La Reseverva, I ask my self the following.
Money invested 70,000 euros
Interest paid or interest I could have received over
3 years at say 5% 10,500 euros = approx £7,500
I choose to view this as my loss? to date so no matter what is supposed to be the on coming property crash this is my situation, and think many others.
Now what did I pay for the property? I haven’t paid for the property; I have only paid the above however the value of the property back then was supposed to be the contract price of 207,000 euros .
Now I for one was fully aware and I am sure many were more than happy to accept capital growth on the contract of 207,000 euros but can’t accept the loss of interest on the deposit. ( capital growth on 207,000 compound, bring it on!)
At the moment I am £7,500 down in the game if you want to look at it this way so what next.
1 Court action in place and may win and with interest may get the money back?
2 I loose the court case and then I complete or loose my deposit and that’s a fact.
3 I complete on an 80% interest only mortgage and rent the property out so covering a large percentage of my repayments.
4 I use it for holidays and family and friends.
5 I then wait until the double digit gains that even the most pessimistic forecast in say 5 years times.
6 I could attempt to avoid completion for as long as it takes to get an L.F.O if I can get away with it and it could be years ie towards the 5 years.
What’s my alternative? Worry myself sick and look for every possible negative
posting and then make myself worry more.
Took the same view when the stock market went from around 6,900 to 4,500 several years ago and on paper? I lost around £150K and watched as many cashed in at that point because of warnings that the markets would fall further so they lost.
However in a few short years that loss that I was supposed to have made is now back to and above the figures before the crash.
Now back to the Spanish Property situation?
If a similar property to the one that I don’t own yet fell by say 30% as forecast by some of the guys here do I assume that I can by an 83m2 apartment with terrace, parking storage and swimming pools in Marbella for 144,900 if that is the case I will have 4..( interest only of course)
Lesson I have learnt, sometimes you have to stick it out while others around you panic and employ people far more intelligent that you.
Regards
Jim