Times warning on foreign property

[Crevette]

This time the times gives a warning on buying foreign property ;

http://business.timesonline.co.uk/tol/business/money/article1595909.ece

Interesting points about the French market '

"Low interest rates and a huge expansion of what is in effect a sub-prime mortgage business (lending large amounts to low earners on variable-rate mortgages) have kept the boom going for years, but today there are already more sellers than buyers in some areas.

And as interest rates keep rising (both in the UK and Europe), and the many people who have overstretched themselves try to get out, that imbalance is going to get worse.

It is a similar story in France where a record number of new houses were put up for sale last year, where one in 20 buyers last year were foreign (that is double the ratio of 10 years ago) and where house prices actually fell 0.6% in January. "

"A friend told us last week that with London house prices out of his reach, he thought he would buy abroad to get his foot on the ladder. We suggested he might do better not to have his foot on the ladder at all, particularly anywhere by the sea. "

[Cassis]

There is always plenty of hot air and there are easy column inches to be filled on the subject of property prices. [:)]

[aj_dr]

Hasn't it always been "let the buyer beware", It doesn't matter if you are in the UK or abroad, perhaps he ought to look at his home market as well. The UK market has always been active but when prises have risen very fast,after a time they take a donwturn as there aren't the first time buyers and without them the market grinds to a halt. Let's face it the market has slowed down in the UK, lower pay rises, higher interest rates and higher inflation,this in turn has had impact on UK people buying abroad. 

aj

[Logan]

There is another factor in the pending collapse of the Spanish Costa property market that nobody talks about. CRIME. It's out of control. Spain has become quite a dangerous place to live due to large amounts of eastern European gangsters and drug pedlars arriving on the coasts. There are rich pickings among the relatively well off northern Europeans and an incompetent, badly trained police force. Folks realise that after they have moved, eventually they need to sell and cannot. They then have a vested interest in keeping quiet about realities.

[Immokalee]

A bit like the Florida market........too many houses on the market from owners unable to keep up the mortgage and not enough buyers..... been there done that and thankfully got out at the right time.

I do think that France will become even more attractive especially considering air fares and distance.  I for one would rather do the drive that take a long haul flight and I know the numbers feeling that way are growing

[MrCanary]

But if, like my wife and I, you have bought your French house with no intention of selling it, there are no problems...

[Logan]

[quote user="Mel "]But if, like my wife and I, you have bought your French house with no intention of selling it, there are no problems...[/quote]

The words ' no intention' is a very long time. Change happens. Selling at a profit in France is tough because the market is restricted by low incomes among the French. Dutch and Brits will pay more for the right property but there's a huge choice. Not just in diverse property for sale but also within differing regions. As we write the property market is collapsing in Spain. Massive over building and selling 'off plan' has created a market glut. Pre-owned homes now will not sell unless massively discounted. The future investment potential is dire unless you are brave or rash enough. My advice is sit tight. The market everywhere except France is heading south.

[Later]

I bet demand and prices are unchanged for houses in the "real" Spain (ie not the coastal resort towns).  I'm sure people who have moved to Spain to integrate with the Spanish locals are unaffected by all this collapse of the property market business. 

[united]

There is undoubtably an over supply of property for sale in the tourist areas, however, the crash headlines were created by the fall in value of Spanish property companies.

I agree the property away from tourist areas will probably still have a reasonable market.  

[LanguedocGal]

You are right, John, as prices are definitely NOT falling in Cataluyna, unless someone out there can tell me otherwise.

[monaco]

I bought a chalet high in the Pyrenees, just outside a very isolated village, for about £24,000 and spent about the same on getting it renovated and furnished. I wanted to stay there permanently, but unfortunately my daughter nearly died following a botched operation in the UK (of course) and I had to sell my house to pay her debts when she lost her business.  I sold the house to a Dutch/English couple, furnished down to the last tea-spoon, for 100,000 euros, after  3 years ownership.  I would dearly love to be able to do the same thing again, somewhere in the Pyrenees Orientales or Aude, but so far I can't find anything within my price range.  My daughter expects settlement of her medical negligence claim within a few weeks and she will be able to pay me back about £40,000. I have found a mortgage broker who can get me 50,000 euros over 10 years.  This will take me to age 76, but as the lender would have the first charge over the house in the case of my death or resale, I am looking for something up to 100,000 euros, not needing much renovation.  I need only a tiny place, just for me, but with a bit of outside space. I don't need to be near shops, bars, restaurants...I live very quietly.  Can anyone tell me where all these properties are for sale at rock-bottom prices?

[WJT]

Hi Monaco, I am so sorry to hear about the situation of you and your daughter. I hope your daughter has recovered and is healthy now. I did a quick search on the FNAIM website: http://www.fnaim.com/recherche/resultats_det.aspx?affaire=6595523&agence=0&transac=201 http://www.fnaim.com/recherche/resultats_det.aspx?affaire=6725858&agence=0&transac=201 I have seen two properties that I have copied below from the descriptions and photos admittedly small but look very pretty and appear to be in very pretty situations. Unfortunately, I couldn't post the photos so perhaps you can go on the site and have a look. It is not the Pyrenees but both are located in a very beautiful part of the Dordogne in the Perigord Noir. The second one is located in the village/town of Le Bugue, but it is a really beautiful village and the house appears to be very private with some green space and lovely views. The first is in a convenient location to everything but more rural with a good sized garden. There are no mountains but it is quite hilly,very picturesque surrounded by beautiful green scenery and ancient villages and many things to do and see in the area. It is considered to be the most expensive part of the Dordogne. Having a quick search on the site within your budget and quickly looking, it appears I came up with two very pretty little houses. Many more in the less expensive areas of the Dordogne as well. I should think you will be able to find what you are looking for. Good luck   Descriptif (Ref: FNAIM - 22165)

Annonce du 11/05/2007

Catégorie: maison de campagne Localisation: 24480-LE BUISSON DE CADOUIN Dans un petit hameau, entre Lalinde et Le Buisson. Prix 77 000,00 € Informations générales: Nombre de pièces 3 Surface habitable 50 m² Séjour 31 m² Nombre de chambres 1 Cuisine NC Salle de bain NC Surface Terrain 1000 m² Informations complémentaires: Sous sol Non Garage Non Construction Pierre Couverture NC Exposition NC   Commentaire de l'agence: commentaire francais : Dans un petit hameau, entre Le Buisson et Lalinde. Petite Maison en pierre avec Grange attenante à restaurer. Jardin environ 1000 m². Séjour 31 m² avec cheminée et "potager". Cuisine 21 m². Petite Chambre en mezzanine. Grenier. Grange attenante surface au sol environ 41 m². commentaire anglais : In a small hamlet,between Le Buisson and Lalinde. Small stone Cottage with adjoining Barn to be restored. Garden about 1000 m². Living room 31 m² with fireplace and "potager". Kitchen 21 m². Small mezzanine Bedroom. Attic. Adjoining Barn floor area about 41 m².   Next House:

Catégorie:	maison de village
Localisation:	24260-LE BUGUE Près du centre ville, mais au calme
Prix	85 000,00 €

Informations générales:
Nombre de pièces	3
Surface habitable	50 m²
Séjour	24 m²
Nombre de chambres	2
Cuisine	NC
Salle de bain	1
Surface Terrain	125 m²

Informations complémentaires:
Sous sol	Non
Garage	Oui
Construction	Pierre
Couverture	Tuiles
Exposition	NC

Commentaire de l'agence:

commentaire francais : Petite maison mignonne comprenant 3 pièces, avec garage indépendant. Terrasse sympa.En bas une pièce et la sdb avec wc, au niveau principal la pièce à vivre avec porte-fenêtre donnant sur la terrasse, et sous les combles une chambre mansardée. Tous commerces au Bugue, qui est une ville touristique du Périgord noir. Idéal comme pied à terre. commentaire anglais : Sweet three-roomed cottage near the centre of Le Bugue - all the usual facilities, restaurants etc. The main room has a french window opening onto the terrace. There is a bedroom downstairs with the small bathroom-wc next door to it, and a bedroom in the roof space. Separate garage.

[monaco]

Thank you very much for taking so much trouble, WJT.  I have already rented for a year in the Dordogne and I am now in my second year in Lot. They are very pretty areas but I am pining for the mountains, so I have decided to look in Languedoc Roussillon, in either Pyrenees Orientales or Aude, where I used to live.  I don't want a village house - I like complete privacy, so I am looking for an isolated rural property, or something on the very outskirts of a village.  I would be happy with a one-bedroomed house or a  chalet/cabine.

My daugher is no longer in danger of her life, but she has been left with a huge incisional hernia and vasculitis, which means she has problems bending, walking or standing for very long and cannot fly except in first class, as she has to keep her feet up. 

[WJT]

I am so sorry, it just sounds horrible for your daughter and you of course with the worry and financial obligations. I hope she recovers soon.

In regards to the type of property you are looking for, it really does sound idyllic but must admit it does sound very brave of you to be wanting such an isolated property. I hope you find what you are looking for. When you do I would love to see the photos because I'm sure it will be very special. [:)]    Good luck.

[Logan]

[quote user="united"]

There is undoubtably an over supply of property for sale in the tourist areas, however, the crash headlines were created by the fall in value of Spanish property companies.

I agree the property away from tourist areas will probably still have a reasonable market.  

[/quote]

United is correct. The property market in Spain is really 2 markets. The second homes on the coast and the rest of Spain where it is stable and affordable. However from an investment prospective it's very similar to France and Italy with a slow capital gain. Principally on coastal Spain the massive over building of apartments and so called 'town houses' has stalled everything else. I recently read that there are currently 200,000 unsold properties in these areas of Spain. Simple really when supply exceeds demand the prices falls until the market can sell off excess supply. Like apples and oranges there is little difference in market economic terms. The sad fact about Spain is the costal regions have become phoney tourist gettos. The rest of Spain is just like anywhere else where working people live their lives and raise a family.