BE HONEST...Would you stay in Spain if it wasn't for the weather?

Dear All,

"Would Norman be one of those now if he hadn't had the misfortune he had"

not exactly, but had the contract been honoured with the brochured article, rather than the poor build quality and lack of amenity plus the supposed guaranteed mortgage. Then the market would have caught me as it has others. Unfortunately with what was offered I could not have provided the planned family holidays for free. My family just would never have gone there - they are all secure and require a higher standard for their well earned holidays. So what was offered had no value to me whatsoever.

Since it is part of my profession I valued it at the time for what it is now not even achieving, i.e. the 30% deposit paid.

Had I like many been persuaded to complete I would now have a valueless property with a large mortgage plus community charges around my neck and been financially considerably worse off.

This I have declared and even tried to persuade Goodstitch of it.

As I understand it Justin has two similar properties, one of which he is using as commercial premises to provide his current "golden eggs".

** EDITED - Offensive to other member **

Regards

Norman

Norman,who in his right mind would take out a morgage in the twilight of his life?

very good objective observation Haydngj ...

Dear All,

the problem with old age and money is that if you have a high value property then any residual cash is at risk from the grim reaper or may be, depending on tax regs at the time.

So what do you do if you are somewhat ordinary and can't afford the multi-billion industry that the super rich utilise to evade tax.

They evade it by renaming it to avoid.

It seem to me that the cash could be invested in a holiday property with every holiday amenity in the best location - cds near Porto Banus etc.

The brochure promised highest luxury standards not yet seen in cds.

It was expensive with a large deposit - the lifesavings to provide the deposit and costs and the pension surplus to fund the "low cost" mortgage. The whole family to use the free holidays and gain from capital appreciation when the time came to jointly fund the mortgage or sell on. It seem to me that the tax man would have little interest if properly presented.

As to mortgages generally my philosophy is if they a good idea to take out they must be a bad idea to pay back.

from another thread..........

"I am always amused when BTL'ers do their sums and claim they are only getting a small return since they are "investing" the whole property value in the deal.

when in fact they have only invested a deposit, plus costs and getting a huge rental return based on whole property value plus of course the capital growth again based on whole value.

Whereas the main investor "the widows' mites providing the mortgage" is getting a tiny return less inflation which probably makes the return negative but boosts the BTL'ers capital gain.

Doesn't seem fair somehow"

Given the current low interest mortgage rates and the amount of QE in progress the longer you can defer the repayment the better.

But of course you have to be "money responsible", you have to manage it, not an easy task when dealing with the ultimate criminal, the lawyer.

If my deposit were returned I would have to seek better return than my new savings are getting, so yes the mortgage would be a good option with great demand and high rental yield, interest only of course.

Does anyone have another "right mind solution"

Regards

Norman

 JohnZX said..............

 "Eye on Spain is intended to be an informative, helpful and pleasant place for property buyers, owners, expats and anyone with an interest in Spain to post questions and information relating to all things Spain."

Well it used be  

Well,

why not buy in Spain, the prices are surely realistic now and if it is an honest deal...................

Norman

Sorry, was that last post in answer to me Norman? No name mentioned so wasn't sure whether I was to respond or not. 

Dear Candyfloss,

With an open forum any bona fide member can reply..............some are clearly not.........or are flippant.

Patrick has told us that the property market has picked up somewhat on cds........and he should know.

Spain has not nor ever will lose the allure from the weather with or without the winter fuel allowance.

If the timing is right and the facility available.............go for it.

For me it is hypethetical as the mortgage is not available.

There are a multitude of property millionaires out there thanks to BTL.............why not join them?

As Patrick advises it is a good investment and he has expertise.

With inflation the mortgage loan diminishes as does the cost of servicing it..........long live the mortgage!!!!!!!

Regards

Norman

Norman,

                                     nice to see , like in the old days, you are back to posting sensible, readable posts.

Regards  John

 But Norman as inflation rises and the mortgage loan shrinks the intrest rate will probably rise adding to the expence of the loan and taking away any saving that could possible be made, i am sure for some meaning the loan is no longer affordable.I think if i was to take out a mortgauge now to finance a spanish property i would take it out in the uk against my uk property so i didn't have to deal with the spanish banks and then have to worry about where the pound /euro dance went.

Dear All,

There are of course many factors to consider but past experience has shown that with a 30 year loan.......you borrow £'s and pay back pennies.

Governments don't tend to whack the borrower too hard...........they might be first time buyers......or even council house priveleged buyers.

So far no one is offering mortgages to buy silver and gold but if you use property equity and are shrewd you could probably make a much faster killing.

However I am not suggesting anyone goes into BTL in Spain, though I guess it should be possible in some areas.......ask Smiley.

Please be afraid of lawyers but don't be afraid of money.

Regards

Norman

Norman, for the life of me I don't know how a man with all your wisdom can be hoodwinked by simple estate agents,banks and lawyers

Hmmm,

good lord, what a turn around I am now being accused of "wisdom", whatever that is?????

My life experience has taught me that you have to trust others in all things, that is all things, from birth to death.

I trust for example that the other drivers on the roads will stop at red lights and give way on roundabouts etc.

As for lawyers I trusted them to hold my money safe in their client account, assuming it would be safer even than in my own.

Unfortunately no one told me that Spanish lawyers are a breed of criminals apart.

In fact apart from myself and information garnered on here I don't see it acknowledged freely anywhere as it should be.

It should be shouted from the rooftops including by Mr Hay himself.

Perhaps Maria could tell us how to proceed with a safe purchase in Spain without passing control of deposit funds to a Spanish lawyer.

Perhaps it can be done in a cash purchase by handing over to the notary on completion.

Perhaps even there is some other way safety can be assured - the bank guarantee route seems more than problematic.

I am sure we all learn by our mistakes even the cocksure Mr Hay.

Regards

Norman

 in all this i am more curious to what the agent said to Norman to convince a pensioner to take out a 300,000€ + mortgage on a property??? that must be some pension??!!

Was it the old "you are going to make a fortune when the price doubles"???

Dear All,

Is that what George tells his clients????????

if it is, he would be quite right, the equity will be made when the price doubles............no secret.

and of course the price will double.............that is what inflation does.

as already explained the investment was not for me, I was just funding it for as long as I am around,

and yes I have a good pension (no longer available) plus as age creeps on I require and spend less leaving a healthy surplus.

but why not attempt to answer the question how do you serve your clients with safety, if I was in your position as a hungry trader, I would personally guarantee the clients deposits as you should.

but when the brochure and promises were just a fraud the the resulting build will take a very long time to double, but it will eventually, however in the meanwhile can any use of it be made to service the community outgoings??

I judged not, but what do you tell your clients???????

Regards

Norman

Dear All,

please be very careful of "wisdom" it is little better than "expert".

However you should not be blind to information even if opinionated.

BTL is a great investment if you have the capacity to tie you over repair, interest rate hikes and void problems,

so do it but do it with great care.

The following thread may not be exact in prediction but it should not be ignored...........................

see via dianomi

Regards

Norman

Sorry if the thread failed - it was basically saying the UK has not yet seen the property down correction seen elsewhere especially Spain and USA and warning further correction here is inevitable. As much as minus 30% approx. The only flaw I can see is that of the effect of rental benefits and chronic scarcity here.

Hope that helps

Regards

Norman

 I definately wouldn't, its the weather that draws me to Spain.