There is definitely an increase of interest in property here.

I can't make head nor tails of what is really going on.

I was talking to one agent this morning (a good friend) and she's having a great August.  Two sales in the bag already!  For a small agency that's good, especially in August.

Another agent tells me loads of people are looking around but very few, if any, actually putting their hands in their pockets.

So mixed messages depending on who you talk to and where they are based.

BUT there is one common theme amongst agents and that is that if the prices are really ridiculously low they can sell them(of course), it's just that many people either don't want to or can't go that low in order to sell their property.

This new 4% tax is probably even worse news now.  This only applies to new properties, most of which are owned....by the banks!  This will only help the banks which are hugely to blame for the mess the whole economy is in today.

So now, if you want to sell your apartment and the one next door is owned the bank...the buyer is obviously going to buy the one next door and save 4%.

So this new tax "incentive" is another kick in the privates for those trying to sell

OK, really wish I could have written something more positive there!

Justin

just read the thread.  Not everyone who has bought in Spain wishes to live in Spain.  There seems to be an air of smugness from owners ( ex-pats) who relish boasting about how wonderful it is to live there and can't see what the problem is.  I've no doubt it is a lovely place to live full time, indeed my parents reside in Spain.  We bought over 7 years ago with a view to having the apartment long term (not for a quick buck).  Our intention was to rent out primarily to recover some costs and to use as a holdiay home, with a view to our young children eventually having benefit of it when they grow up.  Like others, we bought when the Euro was 1.45 against the Pound.  These are now difficult and worrying times for most peoople and no-one could have pre-empted the world's financial situation.  Struggling owners ("investors") should be given more credit for hanging in there during this long harduous and turbulent period .  I wonder what would happen to the spanish economy if all those hard-pressed threw in the towel and left the banks to sort out the mess. 

fliff

I meet many people who now becuase circumstances have changed describe their Spanish property as a noose around their neck.

Every month they struggle to find the money to send over to pay mortgage and community fee.

The bookings that once helped are down as is the rental income.

For many it is very sad because like you it was part of a long-term plan and to have something to enjoy for the future.

Some wnat to sell but can't becuase of mortgage. Others after putting so much in are hanging in there in preference to selling now and walking away with next to nothing.

quite right Faro.  our own experience of buying in spain has left us very sceptical, especially when dealing with any spanish financial institution.  You earlier post (at 13.51) summed it up wonderfully.  It is all hype and we, in future, will tread very carefully.  take care

 Don't live in Spain (sadly), not smug - and suffering along with everyone else in the financial downturn.  We never intented to let our property it was exclusively for us to use, and if we had to rely on rental income to keep it going, we would not have bought.  That is not smug - it is pragmatic.

As always, location has a lot to do with it!

Patricia

Quite so, Pitby.  I also knw people who are buying in Spain. 

Patricia

What a highly informative discussion this is !!

I suggest it boils down to individual circumstances, including whether "investment" or "lifestyle" are primary considerations.

Cheers,

Jon

Our development is to the east of Estepona and was of 96 apartments  (Gated) There were 16 unsold which the developer sold to the bank 18 months ago ( why I don't know because they are one of the biggest developers in Spain and seem secure).  In the last 6 months they have sold more than half of them, nearly all to Russians all be it at knock down prices. As with FLIFF we bought when the euro was around 1.50 so if we had to sell we would be no worse off because of the exchange rate.  The problem is, around 20% of the apartments were bought originally by investors who are unable or unwilling to pay community fees, at the moment almost 150,000 outstanding.

 Yes Tinto - I agree completely.  And the damage done to communities because of the people who never intended to use the property is terrible.   We are lucky, we only have  a handful of people who  bought and could not afford them (never intending to pay any mortgage - but to flip them) but it still amounts to a big chunk of unpaid community fees.  Even worse, the people who walked away from their responsibilities, stripping houses and leaving an unsightly mess.  No consdideration of the people living around them.  Looking at our development, I am guessing 20% of buyers (as tinto says) were not buying for a holiday home or to live in, but luckily most have decided to rent long term and try to sit out the fallow years.   (Those are more likely to be experienced property purchasers who did not overstretch themselves and have other interests elsewhere).    

Look at this link with regard to a reduction in the amount of (VAT) IVA on newly purchased propertes:

http://www.simplynetworking.es/news_further.php?id=7757&top_id=31

There is a UK-Spain-UK self drive van hire company not far from where we live, from 2008 - 2010 the trend was for Spain to UK, however this year the tide has turned and the majority of business is UK to Spain, in fact they have eight vans on the road constant and cant get them back to the UK quick enough for the return bookings to Spain.  Good to see at least one local business keeping afloat during this crisis.

Yes - I have a brother who moves people between Portuagal and the UK, and he has also seen increased traffic back to the UK - but not as many moving back as still moving out.   But as you say, every cloud has a silver lining for someone!!

I am guessing that many of those folks now looking to move to Spain are like ourselves.  We made the decision a couple of years ago not to buy in Spain (again) until the market setltes...which may take many years. However, because there is now such a glut of property to rent, we are now looking to get back to Spain by the end of this year by securing a long-term let at a reasonable monthly rent.  As far as we can see from our research so far, property advertised at a high weekly or monthly rental, except for those properties in very desirable areas, are remaining on the market. 

 Interesting discussion but as much as some people want to deny it..this headline is very very true.......if anyone wants a little wager i could prove it....my figures against the doom and gloom.......anyone?????

Hi Gorgia..

I remember seeing 'Algorfa Real Estate' when we stayed in Alomoradi for 5 months during the (cold!) winter of 2009/2010. 

Can you tell me,please, are you seeing increased interest in the whole area around you, or is it mostly on the Golfing Complex not far from Algorfa village?  I only ask because alot of the Golfing Complex property is (was?) owned by Brits who had expected to use the facilities on the site...or rent to others that wanted to use the facilities...and, to our knowledge, the site has never been completed. Many of the properties remained empty whilst we were there and prices were falling fast as owners tried to rid themselves of apartments and town houses that weren't going to be used as intended any time soon.  This must surely be the same scenario for many, many complexes across Spain that were built with us 'foreigners' in mind!  Do you think there's increased interest in Spanish property because prices have reached a point where an investment seems more attractive ie; rental returns? Or are buyers looking to relocate to the area?

I must admit, we are hoping to find a place this winter to rent full-time (ieven though we will be dividing our time between Spain and the UK) for the first time since we sold our Spanish home and returned to the UK in 2007.  We are even entertaining thoughts of buying again...if the price and legalities are right.  When speaking to several couoles we became friendly with in Spain who, like us, are now back in the UK, we are surprised (and delighted) to hear that they are all thinking along the same lines!  And, no, they don't all live in the same town...not even the same couinty!  It can't be just us that's thinking this way...can it? Of course, the fact that we are all 'early retired' might be a key factor here.