Sorry if this has been asked a millions times.  We’ve just put our house on the market (our timing is impeccable) and will move to Spain as soon as it’s sold.  Things are getting very rocky here at the moment, with this credit crunch business.

Is the crisis in the UK having any effect on the Spanish housing market?  Obviously, if it is we will accept a lower offer for our house.  If it isn’t then it looks like we’ll be stuck here for a while.  Looking at various property web sites the prices seem to be at an exchange rate of 1.45.  Should we be making offers that reflect today’s rate?

I’ve also read that if you a rent a house for 1 year then you are entitled to stay in it for 5 years which makes renting the same house for longer than 12 months difficult, is this correct?

Sorry if these questions seem a bit daft but I would like to get opinions from people who actually live there rather than estate agents etc.

Bye for now

Kathy

The housing market in Spain is dead, the construction industry has slowed enormously and money is very expensive. Many UK purchasers are caught in the trap of having euro mortgages and the exchange rate against the pound is very poor at the moment.

If you have sold your property you are in a very strong position to pick up a bargain. However, if you are looking to buy and make the kind of quick gains seen in the UK and Spain over the last 5-7 years, forget it! Only buy somewhere because you love it and intend to consider it as a long term investment.

It may be better for you to try and arrange a purchase in Sterling to avoid the vagueries of the exchange rate.

Thanks for your reply.  We haven’t sold our house yet - it’s only just gone on the market but we are prepared to take a lower offer in order to move out to Spain quickly.

We are intending that the house we buy will our home for good and so we are not particulary looking for a bargain or to make a killing but obviously we want value for money.  We thought that maybe we could bank the cash from the sale of this house, move out to Spain and rent for a couple of months whilst we search for a home which, from what I can gather will put us in a good position.

What is the rental situation at the moment? We would need somewhere secure as we have five cats (one of whom has diabetes).

Cheers

Osky

Spain, like the UK, is a big country. The property market has overheated in Madrid and some other major cities, and the prices of houses in coastal urnbanisations are falling because they were unrealistically high to start with.  But there are still areas which are real bargains and where the potential for medium to long-term investment is good.  The population figures aren’t going anywhere but up, that’s for sure, and family units are getting smaller just like everywhere else, which means there’ll be a need for more houses in most places and prices will go up again.  Meanwhile, you can get bargains on renting.  If you can sell and bank your equity for a while, you might pay your rent out of the interest and have change.  Whatever you do, don’t rush to buy in Spain.  There’s precious little chance you will lose out by waiting a bit, and you really, really have to do your research.

House prices here on the Costa Blanca are falling. If people want to sell they have to price their properties to sell.
If they are ex-pats who are going back to the UK they can afford to reduce because they will get more pounds for their
euros with the current exchange rate.

it what that call a buy market , but selling is not the best time , 1 house price are down 2 GBP pound rates is weak aswell , and if you do sell try not to exchange you momey for a while the rate many get better .

If you think off coming out to Spain you many want to rent for a while befor you buy Look around ask around employ some how knows what there doing fine out about the loacl laws ]
ask in fourms like this about place , Perhaps you want to know what the local ex-pat community get up to in a particular town go back at night to see what area like

again it a buy maket out there

Yes its a buyers market and there are plenty of good legal properties for sale - we know because we have them! The problem ? Finance.

It is now much more difficult to get a mortgage from a Spanish bank if you just walk in off the street.

We have good connections with banks and my Spanish partner will get you an offer but you will need a good credit record or (preferably) cash to buy one of the bargains.

Its definately a buyers market now and you can really negotiate. There are many new neighborhoods in Madrid for example, that are 60% unsold and still on the builders hands. These are mainly flats though and are very small.
Financing seemed Ok from my perspective.
I just went to my local Barclays in Madrid, told them how much I could afford to repay every month and they gave me a figure that I could take, Was also given the option for 30 or 40 years. 100% mortgage. Zero fees.
The attached sheet is what they sent me when I originally sourced information. The sheet says that they only finance 80% but I was definately told 100% - just for interests sake
I think the ING have so good deals at the moment too.
I have only been with Barclays Spain for <year and they approved me very fast for a mortgage. I guess the lenders are having a rough ride at the moment.
Renting in Madrid is not cheap, for example I pay 1300Euro a month for a tiny 90m apartment in the suburbs. Very overpriced and it was not negotiable. Thats why I personally want to buy.
The examples above are from Madrid & I dont know where you are heading but a good source of information is:
http://www.idealista.com/pagina/portada
at the bottom they have an English link. A good site where you can get a general feel for the housing market in Spain.
Good luck.
Tom