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Britons face losing everything


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Britons face losing everything as Spanish construction industry goes into meltdown

By Fiona Govan in Madrid

Last Updated: 7:37PM BST 16/07/2008

Thousands of Britons who have bought homes in the Costas face losing their investments as Spain's real estate and construction industry goes into meltdown.

Those buyers who have made down-payments on properties that they have not yet taken possession of could find themselves losing everything, analysts have said.

The warning came as Spain's largest property developer Martinsa-Fadesa filed for bankruptcy after failing to secure a loan as part of a 4 billion euros refinancing package.

The Spanish government has refused to come to the financial aid of the troubled property group, insisting that the private sector must be responsible for solving its own problems.

The crisis has sent shock waves through an already troubled real estate industry and heightened fears that other property and construction companies could also fail.

"It has sent a message that Spanish developers are in a lot of trouble," explained Madrid based Roger Cooke of Cushman & Wakefield, who said dozens of smaller developers had gone under since the bottom fell out the market last year.

"It is does not come as a surprise to see the big companies following suit."

The impact on British investors in Spain could be huge with those who bought off plan most at risk.

"Hundreds of Brits will be affected by the collapse of Martinsa-Fadesa alone," predicted Mark Stucklin, of Spanish Property Insight, adding that thousands more across Spain could suffer as the market worsens.

"And if a giant like Martinsa-Fadesa can fail, no company is safe and therefore no buyer.

"People who have bought off-plan and even those who have already moved into resorts that may not be entirely finished could find themselves at risk."

An estimated 12,500 properties sold by Martinsa-Fadesa are threatened as the company goes into administration.

British buyers have been particularly attracted to the purpose built luxury golf resorts offered by Martinsa-Fadesa along the Spanish and Portuguese coasts.

Full story, source: The Telegraph

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The dream is over, only pain and pain to come. :cry: But im ok, i have my money invested in property on the moon :D

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The dream is over, only pain and pain to come. :cry: But im ok, i have my money invested in property on the moon :D

:lol: have a look in the space section you can send your name to the moon on the next mission there, its run in partnership with NASA,

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I read that although the price of houses is falling in Florida, and although Florida has the highest rate of Foreclosure in the US, that 200,000 new homes will be built there this year and will have no one to buy them and be sitting empty.

Construction industry is not going to be a pretty place next year or even longer.

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Real Estate prices are great here, as long as you're the buyer.

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I read that although the price of houses is falling in Florida, and although Florida has the highest rate of Foreclosure in the US, that 200,000 new homes will be built there this year and will have no one to buy them and be sitting empty.

Construction industry is not going to be a pretty place next year or even longer.

making homes for nobody :huh:

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