Property Abroad - Spreading the pain?

alasota

Interesting threads!

Having a conversation with a friend over the weekend, he suggested that the property market in Spain is currently on a knife-edge, and will probably crash imminently. Putting it simply, there are fewer buyers over there that there are here!! AND a hugh glut of properties for sale. I guess the same could be said for other countries where the UK population have spread their 'equity' to purchase holiday homes (don't forget, Bristish people own the greatest proportion of foreign own properties across the EU!).

My question is this - I can't beleive for one moment that our current property pain will not travel across europe - will the same, or greater property crash that, frankly, IS about to happen, be worse in mainland Europe? and if so, how will it affect those countries?

I personally see a lot of construction stopping. Large areas being left to degrade, and some major re-balancing of wealth in these areas. These effects will be felt elsewhere!

PS - also, another friend, FD of a construction company, has said all new constructions on hold, current properties frozen, nothing being sold! 30% of workforce gone! Not looking rosy for them, and this is no small company! I would suggest we are in for a bumpy ride - whatever the PM says!

PasturesNew

Many of the foreign properties owned by Brits were funded from them increasing their UK mortgages.

.... double poo portions for them.

alasota

Exactly! There is no value in those properties also, so no getting off any hooks there! It all just seems so bad in so many ways!

Jonbvn

Spain is in a much worse position than the UK. There has been a massive building boom going on, such they have built more residential properties than France, Germany & Italy combined. There has been widespread disregard for planning regulations etc. There is now a massive over-supply of property, which makes the UK new build flat situation look good.

MissKJ

It isn't quite as bad as that. It is like all investments, some win, some lose. It is however true to say that the current situation is having a negative impact on prices abroad and sales. But remember, not everyone is relying on the house prices. If you have bought and don't plan to sell, it doesn't matter too much at all. The biggest issue for overseas buyers is the excahnge rate. But you have to just move with the changes. My rentals are coming in nice and steady, so hopefully my mortgage will still be covered. Thats all that matters to me at the moment.

(note to ones self - DON'T PANIC)

m00m00

foreign property in europe will be slightly cushioned by the relative strength of the euro at the moment. Currency fluctuations can go both ways though.