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Just been chatting to a colleague regarding the spanish property crash, hes based in Madrid and has heard that the worse is yet to come.....especially for second home owners on the costa's.....

Basically the second hand market is dead due to a massive over supply of new builds......alot of brits sit there saying "my properties worth what ever....but its not worth almost anything because there's not a buyer wanting it !!

I think the best time to buy a spanish property will be late this year or early next, especially with higher UK interest rates and sweaty owners wanting to sell....

Your views...

!thumbsup!

I lived on the Costa Del Sol for the past couple of years until I came back to England in January.

The simple truth is that most people down there will be surprised it has taken this long for the crash to come. I was advised by a friend of mine who works in real estate some 18 months ago not to even think about buying as proerty on the Costa was about 35% overpriced and that the holy grail was about to end.

Most had been bought for holiday lets and there just wasn't enough holiday makers to fill them.

Those that were made available for long lets were vastly overpriced to what the wages would allow them to pay in way of rent. I was lucky in that I worked for 2 decent companies in Simply and Adamtech who paid reasonable wages but overall there's little work and what there is doesn't pay well.

There has also been a major economic boom in the whole of Spain for around 10 years but where there's a boom there usually follows a bust and the bust looks as though it is about to hit.

I wonder if the shit is finally going to hit the fan over here as well.
There was an economist on television saying it's a distinct possibility, and it's a good bet that interest rates would rise to 7%.
An awful lot of profiteers have gone into the buy-to-let market in recent years and while I wouldn't want any decent person to loose their home, I would bet that if it happens you won't be hearing "Do you know how much my 3 bed condo has dropped in the last week?" by some loathsome individual in a poncy wine bar.

same thing in america reported on blomberg today .their house prices are falling.

Boo hoo.