Posh and Becks hit by credit crunch
Wednesday, October 15, 2008
Even the celebrity circus surrounding the Beckhams cannot protect them from the credit crunch. Their Madrid mansion has been on the market for 17 months and they just can't shift it, despite dropping the asking price by a whopping £2 million...
If there was ever a poster child for the credit crunch, nobody would have predicted that it would be the Beckhams.
Footballer David now rakes in £125 million a year from LA Galaxy. Couple this with former spice girl Victoria's dosh and the couple are worth an eye-watering £150 million.
Some might say a mere £2 million is pocket change for the King and Queen of UK popular culture, but it goes to show how universal the effects of the credit crunch are. Even the big hitters, (or should that be kickers?) aren't immune.
The Beckhams bought the house, in the ritzy La Moraleja suburb in Madrid in May 2005, when David signed to play for Real Madrid.
The five bedroom mansion was the culmination of months of tottering around the city in high heels and football boots on an exhaustive house-hunting mission.
The couple paid £4.5 million for the home, and spent another £500,000 doing it up to their taste. Set in two acres, the villa has a swimming pool, tennis courts and football pitch.
When David signed on to play for LA Galaxy in Los Angeles last year, they put the house onto the market. Seventeen months later, that's where it remains.
Following advice from a local Madrid agent, they dropped the £5 million asking price to £3 million, but, despite a handful of viewing, have still failed to shift it.
Luckily for them, they are managing to eek out a living on David's £125 million salary and have other properties to fall back on in LA and the UK.
Spanish property prices began to fall dramatically last year, amid signs that the world was entering an unprecedented financial upheaval. Fifty per cent of Spain's estate agencies have been forced to close their doors and the glut of new properties, built at a time when demand from international investors was going through the roof, now sit empty with developers unable to make a sale.
Spain's once booming property market is now in freefall. The buying and selling of homes fell by 27 per cent in January of this year compared with the same period last year, and there has been a 25 per cent fall in the granting of mortgages, which is the biggest drop since 2004.
Even the super rich aren't immune to the current crisis.
Wednesday, October 15, 2008
Even the celebrity circus surrounding the Beckhams cannot protect them from the credit crunch. Their Madrid mansion has been on the market for 17 months and they just can't shift it, despite dropping the asking price by a whopping £2 million...
If there was ever a poster child for the credit crunch, nobody would have predicted that it would be the Beckhams.
Footballer David now rakes in £125 million a year from LA Galaxy. Couple this with former spice girl Victoria's dosh and the couple are worth an eye-watering £150 million.
Some might say a mere £2 million is pocket change for the King and Queen of UK popular culture, but it goes to show how universal the effects of the credit crunch are. Even the big hitters, (or should that be kickers?) aren't immune.
The Beckhams bought the house, in the ritzy La Moraleja suburb in Madrid in May 2005, when David signed to play for Real Madrid.
The five bedroom mansion was the culmination of months of tottering around the city in high heels and football boots on an exhaustive house-hunting mission.
The couple paid £4.5 million for the home, and spent another £500,000 doing it up to their taste. Set in two acres, the villa has a swimming pool, tennis courts and football pitch.
When David signed on to play for LA Galaxy in Los Angeles last year, they put the house onto the market. Seventeen months later, that's where it remains.
Following advice from a local Madrid agent, they dropped the £5 million asking price to £3 million, but, despite a handful of viewing, have still failed to shift it.
Luckily for them, they are managing to eek out a living on David's £125 million salary and have other properties to fall back on in LA and the UK.
Spanish property prices began to fall dramatically last year, amid signs that the world was entering an unprecedented financial upheaval. Fifty per cent of Spain's estate agencies have been forced to close their doors and the glut of new properties, built at a time when demand from international investors was going through the roof, now sit empty with developers unable to make a sale.
Spain's once booming property market is now in freefall. The buying and selling of homes fell by 27 per cent in January of this year compared with the same period last year, and there has been a 25 per cent fall in the granting of mortgages, which is the biggest drop since 2004.
Even the super rich aren't immune to the current crisis.
posted by tony at 11:20 PM
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