Spain is back in buisness.......

Just back from Spain after 2 Months of good weather and cheap food, I am amazed to see the cranes back in the skyline, the are building hundreds of new apartments across the road from the buzzing La Zenia Boulavard, I went to see the showhouse very nice, I asked the guy there what were the prices like and he said all the six phases here are sold out, we have also two other developements in Punta Prima and Villamartin prices frorn €130,000 for 2 bed 2 bath, Restaurants packed everywhere, great that Spain is coming out of that terrible mess they were in................

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Hi - yes it took us by surprise as well.  The new builds are selling fast off plan, something which we didn´t expect.  There are many new projects in this area and I think that they offer something different, which is why they are so popular, particularly with our Scandinavian clients.  They like crisp modern properties with 2 bathrooms and underfloor heating and the established builders in this area are now offering this.  I have had a few clients over the summer who wanted to buy on these new developments but found that they were sold out and they were too late.

I met with a builder this week who is just launching another new project in the area and he said that they are printing their brochures in English, French, Norwegian and Russian - but not in Spanish.  That is where the maket is now.

We are not out of the woods yet, but there are lots of encouraging signs, so hopefully the Crane can now come off the endangered species list!

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Yeap, in my opinion it is time to buy

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Yes definate signs of improvement, have sold 5 repossessions in last 5 days but with the prices now thus makes sense

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Ye amazing to see all the sales.... I live there for 5 Months of the Year and I really see a lot of changes, the price the properties  are going now is really all they were ever worth, during the boom things were crazy I went into the bank one day for €20,000 for a car and he wanted me to borrow €40,000 he said go on a cruise and see the world and have a good time ,  but I said I only want 20 grand and that's it ......now it's hard to borrow 10 Grand.....

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Maria and Inspectahome - yes prices may be cheap, but presumably those that buy now will get hit with 'complementary tax'? Do you warn the buyers about that?

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I always find these forums quite amusing when there is what could actually be positive news for the country and people that live and have invested here that somebody has to put a negative spin on things

To answer the question yes we do make buyers of the POTENTIAL additional tax liability from 'complementary tax' however by comparison it is such a small amount, compared to the 75%+ reduction in the price of the property, as the tax is only 7% on the difference between the actual purchase price and the value placed on the property tax office, which by the way you can appeal.

We also make them aware of the potential tax laibility when they come to sell the property

Surely it is better that the market starts to move again

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I find this thread quite disturbing, how can you start celebrating when most of the repossessed houses now being sold belong to the banks who together with the builders/developers have conned the original buyers out of their lifesavings over the last ten years. Once again thoses with money to spare will make a killing at the expense of all the poor swindled buyers. The Courts and the Justice system are supporting this when they should be ensuring that the banks work to find a solution to restore these properties to the rightful owners who investested their hard earned money in Spain. Give the cut price houses to them, they still won't be selling at a loss, the Banks and the builders have won twice over. We are the loosers every time, so please dont make this any worse by talking about things looking up. Today the 26th October is the 7th anniversary of us signing our contract, six years of waiting, misery and stress, so please don't gloat to us about the price of houses. We were also made to pay 7% IVA of our deposit in 2006, so can someone tell me who has that money, the government, the local authorities, or once again is it the crooked builders and banks, building up their little pots of interest?

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Thousands of unsold properties and yet more are being built?

Perhaps worth mentioning to the unemployed of Spain, that Spain is back in business this is what Prime Minister Mariano Rajoy had to say.

"Spain emerged from two years of recession late this summer, but faces a long period of more austerity and painful adjustments before it can regain its footing and put most of its 6 million unemployed back to work, Prime Minister Mariano Rajoy said on Monday."

 Agree with you M11 block, perhaps when Spain deal`s with all the corrupt builders / bank officials / politicians then they maybe back in business. I won`t hold my breath though.

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Would be better if the banks got together with some of the better builders and sold to them... at a reduced price...all the houses they have had given back, or reposed over the past years, so the builders could spruce up / clean up the bad areas, renovate these house's to a very good, and very high quality, and then sell then on.

Starting new builds on land that as we all know might be the new future claw backs,  illegal land snatch back knock downs....all over again if no one has learnt any lessons from the past, and we all know human beings as a rule don't learn from past mistakes.

Where's the business sense of having a couple of million euro's worth of unsold slow moving stock, hardly any back up money, and then buying up more stock which is exactly the same stock as you already have that you haven't been able to sell at give away prices anyway.

Unless of course someone has done a deal with the devil...Russians.

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The facts are the repossesions that we become involved in are the hundreds that have been taken back from the developers as they cannot make the payments to the banks and some that have passed into the bad banks, Sareb, not properties that have been taken back from people that have completed

Financially there are 3 lots of people effected 2 that I have little sympathy for the banks and the developers, the other are the people that purchased at full price and now see the same properties being sold off at 25% of what they paid 2-3 years ago

With this situation I am certainly not gloating, I personally lost a lot of money on the properties I sold,  but everything that was available to buy had reduced to the same extent so, because I was looking to re-invest, it didn't really matter, but the only thing i would say is nobody forced me to buy the properties, nobody held a gun to my head and I didn't see or predict the crash in the market and currency rates

The only way to clear the thousands of unsold properties is to sell them cheap and then hopefully the narket will improve for everybody if we can get out of an oversupplied market

I personally cannot understand how builders get finance and permission to build even more properties in areas where there are so many properties for sale, its madness

The banks are not buying stock, the banks have no choice other than to take the properties and the knock on effect for communities is that the builders don't pay the community fees so developments fall into disorepair and people loose even more money

Most properties are new, have never been lived in and yes many need general cleaning up but for the right person can be a good investment

I welcome any signs that say that the market is turning, any sign that will improve the financial situation for employment and the economy

 

 

 

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ob123."Just back from Spain after 2 Months of good weather and cheap food, I am amazed to see the cranes back in the skyline, the are building hundreds of new apartments across the road from the buzzing La Zenia Boulavard.I went to see the showhouse very nice, I asked the guy there what were the prices like and he said all the six phases here are sold out, we have also two other developements in Punta Prima and Villamartin prices frorn €130,000 for 2 bed 2 bath,

ob123, I don't mean to be grumpy but I can't see how you could have been "amazed" to see the cranes in Oct 2013 when  a year ago in Nov 2012 you made a practically identical post. Had you forgotten what you had seen last year?

ob123 03Nov2012: "12 Months ago there was not a crane to be seen, this Week I counted 9 all working and buzzing, I went into see one of the new blocks they were building and they were all sold out the lady said, 3 bed 2 bath state of the art apartmnet €160,000, so it's true the place is really taking off, and Spain is back with a bang........."

 

 

 

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 Gut T.....To be honest when I made the first insert things were moving well and I was really pleased to see the cranes moving again, but this time it was totally different every site I visited was sold out and that is amazing.......I must say you are very observant.......

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I think I'd rather stick to the facts rather than what those with vested interests are saying:

According to recent data published by the National Statistics Institute, home sales in Spain fell by 15.4% in August, year-on-year, after declining by “just” 5% in July, with the number of transactions in August amounting to a total of 23,552.

Thus, home sales have accumulated four consecutive months of declines after returning to negative rates in May, when sales fell by 3.7%. Month-on-month, (August over July), housing sales dropped by 8.4%, their biggest decline in this month since 2010.

http://news.kyero.com/2013/10/21/home-sales-dropped-by-15-4-in-august/

 

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The positive posters were describing local conditions now. What is the point of knocking them by using NATIONAL statistics? Furthermore, these findings you ’disclose’ due to the publication date underscore the term irrelevancy. In such a debate they are quite irrelevant.

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Most people seem to have a vested interest, one way or the other - the ones who are determined to insist prices are forever dropping (according to their logic, prices will eventually go into minus figures, where the seller pays them to take ownership of their homes) are just engaged in wishful thinking. And those of us with something to sell, would like to go along with the more positive projections and thus sometimes might also engage in wishful thinking. There are good signs in the economy and bad signs; and it is legitimate for both sides to be reported. It does all get rather heated here though, doesn't it? Usually the ones talking the market up get verbally assaulted, and the other side behave as though they were independent, objective, indifferent observers. Yes. That's why they get so aerated over it.

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The fact remains, Spain May be back in business, but supported by the Banks who now have millions of euros in their vaults and thousands of unsold houses to sell which have been stolen from buyers once hoping to settle in Spain who would have boosted the economy honestly. Before Spain is to recover its reputation and status, it needs to get its house in order and reform the housing development industry, the Banks and the Legal and Justice system needed to protect the buyers investing their future in Spain.

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Eggcup.  The three types are those with a vested interest in finding buyers for the properties they have to sell, that’s private owners and real estate agents, who want to convince people they have never had it so good. Those who are seeking to buy at the lowest price possible and  those who don't want to sell, or have nothing to sell, who have no vested interest in whether the market gets stronger or weaker, so just maybe, they just tell it, as it.    

 My son wants to sell but I do not think he has a hope in hell, unless he gives it away.  Fortunately he can wait until, well who knows until when ?    But he is fortunate as he has just emailed me to say he has completed on a substantial property deal in UK which he has been working in for 18 mionths, which makes his apartment here very small change. From his deal it looks as though the UK property market is taking off again. As for Spain, I very much doubt it.

 

This message was last edited by johnzx on 28/10/2013.

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No-one who engages in debate on this Forum comes without an agenda. It is not necessarily financial - people's motivations are far more complex than that. Some people post because they like to think and like others to think that they are an impartial observer and/or expert, and are above the petty motivations of others. But everyone has psychological motivations operating.

For example, in a debate such as this, which has gone on for ages through various threads over the past year (and presumably for several years, unwitnessed by me), if someone has always taken one line on it, they may find it impossible to accept any other data or facts which conflict with their stance. They would see this as a sign of weakness. It is in fact the opposite.

Impartiality is more likely in a person who is able to and often does take on other points of view and is able to present a balanced view of the current position of the property market, as well as balanced views on other topics. Impartiality is not demonstrated when someone always 'sticks to their guns' and never veers from their original position.

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My opinion has not changed over the past few years. 

I have been repeatedly told I am wrong (including several times by Eggcup) when I have refused to accept ‘Real Estate agent’s ‘ views that the market is rallying. 

Now that may be because I am biased, either because I have had no interest in selling or buying, or in the way I have read the info, but so far my opinion has been right:  “The market  has still some way to fall”.

 

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