Back to the futures for Spain?

When times were good, thousands of Brits were snapping up property in Spain on the promise of price hikes during construction that could be turned into a profit. A easy deposit, and typically, 20 months in the future, the place could be “traded” - resold to the less agile, more sceptical…

Nothing wrong with that, there are vast buildings in capital cities around the world where trading in different sorts of “futures” like the prices of oil, grain and copper are legitimate, but now causing problems as they have been “traded” to the highest levels the world has ever known.

Meantime, back in Spain the apartments and villas along 1,000 miles of Costas, which two years ago were traded to their highest price levels ever, have seen prices come crashing down. The companies that took millions of pounds from susceptible “investors” for courses on how to become a property millionaire have themselves crashed, amid shoals of recriminations from their one-time clients who are left with depleted bank accounts and mortgage payments on untenanted flats.

At one time there were 80,000 property sector companies in Spain turning out 800,000 homes a year – according to urban legend, more than the UK, France and Germany combined – now there are about half the firms and 200,000 unsold saleable homes left.

The big daddy developer of them all, Fadesa – the name on the shirts of one-time Champions League team, Deportivo La Coruna – went bust this week despite recent merging with a rival. Another big developer, Llanera, crashed after sponsoring Charlton Athletic FC, whose supporters never managed to pronounce the name, let alone buy their poorly designed, homes.

Everybody is blaming high interest rates and inflation for the property crash around the world and the record prices for petrol, food and building supplies that have been caused by commodity speculators are adding to the misery.

Hard-up Brits struggling to pay McBrown’s tax bills, fill up the family fridge and car are hardly obvious buyers to snap up bargains in Spain…but wait a minute?

Spanish prices are now 20-30% below even those that were so tempting not so long ago, the new homes are guaranteed 10 years and stuffed with goodies and incentives, resales from mortgage lenders and private owners are half the valuation price, first time buyers are looking at £65,000 deals, over 50s with retirement in mind can do it for 30% less in Spain.

Sunny prospects for 300 days a years, desirable lifestyle, cost of living 30% less than UK, petrol and diesel half the UK levels and a bargain home that can only increase in value…

That might be the next big commodity trade for thousands wanting out of over-taxed, over-looked and over the hill Britain and/or the chance of some fun in the sun?