Yes, in regard to that US article, Tim Horton's Man, the problem is getting bad.

The other aspect is that upcoming buyers may have an even more difficult time getting good financing terms for their mortgages. They will have to buy overpriced property because the sellers themselves purchased at such high costs and will be hardly willing to come down enough in price for things to be affordable, at least for a long time. Mix that in with how prices aren't even appreciating anymore and soon only a tiny elite will be able to own property.

So even if prices crash, things are going to stay difficult, even moreso actually because of lenders' newer, harder terms.

Do people see what I've described as applying to Spain as well?

In my area, the land prices are now so high that developers must erect massive condo complexes in order to turn a profit. Single-family houses are not enough. Of course, the city has all these people moving in but no real planning for infrastructure, transportation, and the like.

I saw some decent listings for nice studios at around 110-150k on the Spanish sites, but even that is going to be nearly impossible for me. Oh well.

It's been amazing, but it seems that no one stopped to think that the bubble could burst. Now this is interesting. I've been on idealista.com to look at rents for properties in Madrid and I have seen numerous landlords drop the asking price for rent. It seems that even that could be a change a comin'. Who knows?

People with common sense all knew this day would come.

quote:

saw some decent listings for nice studios at around 110-150k on the Spanish sites, but even that is going to be nearly impossible for me. Oh well.

I agree 100%. Even that's expensive. I want to be in Spain long term, but unless I win the lottery, it's renting for me and I, personally, don't have a problem with that.

Shawn

Shawn brings up a good point about renting.

i am sick and tired of people finding out we rent here and saying that it is throwing money away.

i agree that paying 1,200, 1,500 or 2,000 in rent would be wasting money when you can get a mortgage payment for the same amt. but while we have the great deal on rent at less than 700 euros for what is our dream apt., why is it throwing money away? where would i get a 700 mortgage? that would be the mortgage on a parking garage here in madrid these days.

also, if you do not have the full down payment (20% of the value + bank fees), there is no way you can buy and get a mortgage anyway so renting it the only option for many. thanks to my low rent, i am able to save for that down payment.

i was in the bank to pay my rent today and it just so happens that i asked the teller (i always go to the same branch to pay the rent) about rents since he sees a lot of peeps come in and pay their rent. he said that rents are still very high and he sees people paying anywhere from 1,200 to 2,000 a month.

he also made it a point to mention that mine was a joke compared to what he sees every day.

saludos,
jer...

I agree, that is a common thing that gets said also here in the US and it's annoying. There is a huge advantage in NOT having all the liability and maintenance costs that come with owning property. Let the owner worry about all that.

I think that people have been conditioned to thinking that buying is the way to go and saveon taxes in the US. Well, guess what? I had this discussion with my dad and he said that he receives very little back in taxes for owning his home. It's all pure marketing in my opinion. There are really many advantages to renting and in the long run, if your rent is low, you can end up saving money.

Yes, when I rent, the money is going in someone's pocket, but isn't it the same when we go to the grocery store? No matter what money we pay, it's going in someone's pocket. So that's a lame excuse that many people use and renting is not burning money either because I prefer to rent rather than live under a bridge.

If you have to rent, and like Jer says, don;thave the down payment for a home, just keep renting until you do or die, which ever one come first.

Shawn

Take a look at this ad for an apartment in my old building:

565 €/mes (94.008 pts.) 30m2 - 19 €/m2
PLAZA san juan de la cruz, 7 ss
chamberí, ríos rosas
segunda mano, 0 habitaciones 1 baño, estudio
tlf. 636 215 549
madrid 28003
anuncio con fotos
ver ficha completa de este anuncio

I was paying 650 and when I left the landlord was asking 750. I told him good luck and even the porteros said that he would have a hard time finding someone to rent at that price.

Shawn

As far as I know, the average rate for ~30m2 in zona Chamberi has been ~500€/mes all along... (not that I live there or rent 30m2 but I know quite a few people who do)

Ola,

I think that it's more than that because it depends on when your friends rented the apartment. There were people paying more than what I paid back in in the same apartment building back 2003. I would raise that average to about 600 because landlord are asking for more money for rent now.

Shawn

hey Shawn.

had a look at that ad.

was your pad interior or exterior?

i recall there being a lot of natural light and that ad is for an interior studio that looks a lot darker than your place was.

saludos,
jer...

You are absolutely right, Jer. That place advertised is semisótano and I lived on the 8th floor, interior, but I had a lot of sunlight because the building only had 9 floors and the sun would always reach my place.

Shawn