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El blog de Maria

Your daily Spanish Law reporter. Have it with a cafe con leche. www.costaluzlawyers.es

Saving banks´property offers: 25% less
27 July 2009 @ 12:29

"A cada cerdo le llega su San Martín". ( I am going to ask Luis to explain this spanish saying for you today as it seems to me it perfectly fits with the information below:

ACSI ( a holding company for the management of real estate assets owned by saving banks in Spain) is launching its activity this week. They will be offering properties at much discounted prices ( -25%).

 25% less: maybe the real price they should have been sold in the market 4 or 5 years ago.

I guess that saving banks will end up selling  the number of properties that would have been sold (non-inflated) in a sane market some years ago too.  No speculators will come to the festival this year.

Reality always makes its correction. That is maybe the best lesson we need to learn out of this. " A cada cerdo le llega su San Martín".

Now it is time for consumers rights. Making virtue out of necessity again.

Pork´s slaughter in Spain.

 



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2 Comments


Sandra said:
27 July 2009 @ 17:05

Yes, Maria you are right. Applying a 25% discount would reflect the true value of these properties 4 or 5 years ago. Sadly the economic slump has suggested an even bigger reduction would be needed to shift the mountain of properties.
The greedy banks have certainly got their come-uppance now.
They either; sell off the housing stock at huge reductions and start lending again or; hold on to it for years whilst the market improves and apply stringent conditions on borrowing. If they chose the latter route it will be years before the Spanish economy recovers.
Let us hope, somehow they can see sense.


Inez Rix said:
28 July 2009 @ 00:59

Prices are going to have to come down to levels of 10 or so years ago. The rate they increased by over the last 10years was far too much, there is huge oversupply which will not be corrected for many years to come.

There is wide concern there is more bad news to come from the banks before the autumn as well!


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