Fleeing the Costa Catastrophe:

woe10 · May 23, 2012, 19:11:02 PM

Fleeing the Costa catastrophe: Thousands hand back their villa keys as Spain's economy teeters

Is this going to happen in Fuerteventura:

Many struggling with their mortgage could be targeted by banks needing to call in bad debts.

BEWARE A CUT-PRICE PROPERTY TRAP
But experts are warning of companies offering repossessed homes at knock-down prices.

PANIC SETS IN AS EXPATS DITCH EUROS
Fresh fears that savings held in the country may also be at risk.

Read more: http://www.dailymail.co.uk/money/news/article-2148335/Fleeing-Costa-catastrophe-Thousands-hand-villa-keys-Spains-economy-teeters.html#ixzz1viHPOYku

Billy Brown Bum · May 23, 2012, 20:15:24 PM

and whats worse is that they can, and are doing, pursue the owners back in the UK and force sale of their UK property and assets to pay off the Spanish debt. They do so due to a little known EU (as always) regulation that allows Spanish Banks to register their debts with your local County Court and proceed from there...

Cameron · May 23, 2012, 20:16:04 PM

the good old mail does like to lay it on thick.

just off to beachy head to take a swallow dive)

appy ammer · May 23, 2012, 20:30:52 PM

truth hurts

Spike On Q · May 23, 2012, 20:31:57 PM

I've got a property in England that has declined in value by 20% over the last 5 years and it's still going down - what should I do join Cameron at Beachy Head?
If the banks don't call in bad debts does that mean as a customer of that bank the bank will need to use my money to pay the debt.
Is the money mine in the first place, I put it into the bank - the bank just lends it to another person and pays me a small interest for the pleasure, the bank doesn't have any money of it's own does it?

Cameron · May 23, 2012, 20:50:10 PM

join the queue spike. i'm on the end just outside eastbourne at the minute.

appy ammer · May 23, 2012, 22:26:51 PM

difference is spike you can legally let out your property unlike over in fuerte

PeterHeirman · May 23, 2012, 23:45:50 PM

Valuation of real estate:
http://www.investopedia.com/terms/p/price-to-rent-ratio.asp#axzz1vjOoxS6L
low valuation: long_term_monthly_rent times 12(months) times 10
high valuation long_term_monthly_rent times 12(months) times 14
where 10 is low valuation (cheap) - 14 is high valuation - over 14 : then don't buy but rent

So if your condo or house rents for EUR 500/month (over 6months or longer) then your property has a value of about EUR 72000 (500 x 12 x 12)