Spanish marketplace

[Guillermo M.]

Hello guys!

I have been visiting the market in my city Madrid - Spain and the sellers are still asking for a lot money (a lot more 2 years ago but still high prices). My numbers don't fit the prices with the current mortgage fixed rates (around 6%-7%).

I have a sheet with the analysis of one property I liked 40sqmeter, 1bedroom, 1toilet 1livingroom. The right column (blue) are the numbers with the price the seller is asking (it would be crazy to buy at that price) and the left column (yellow) is what I consider a relatively good invest.

The sheet:
https://dl.dropbox.com/u/675003/Property%2520Analisis%2520-%2520Sheet1-4.pdf

What do you guys think about my numbers? and about the property? I can't fit my numbers in any property, do you have this problem in US too? Do I look for more properties or should I change the market place? I think the guy that is trying to sell the house is going to think I want to cheat him or something if I offer him 47.000€ instead of 140.000€ he's asking.

Any help will be welcome!

If you are curious and want to see the property:
http://www.idealista.com/pagina/inmueble?codigoinmueble=VP0000005290888&numInm=1&edd=gmap