Are property prices about to fall in Spain ?

Post reply   Start new thread
:: New - Old :: Old - New

Pages: 1 | 2 | Next |

Forum home :: Latest threads :: Search forums
The Comments
29 Sep 2016 10:23 by johnzx Star rating in Spain. 5241 posts Send private message

 

From Lenox Napier a subscriber here:  http://businessovertapas.com

 Banks in Spain may be left with no alternative but to cut the price of repossessed Spanish homes on their books in order to attract more buyers, as part of the Bank of Spain’s plans to force banks to reduce their real estate exposure.

From 1 October, Spanish banks will be required to increase provisions against their repossessed property portfolios and real estate divisions, with the regulator planning to increase their property sales rates, which they can only do by lowering prices...’.

From Property Investor Today





Like 0      
29 Sep 2016 20:41 by Roberto Star rating in Torremolinos. 4514 posts Send private message

Roberto´s avatar

Cutting prices won't help, and will only give ignorant would-be buyers the impression they can get their hands on a decent property for next to nothing, thereby stagnating the market further. DEMOLITION is the only answer to the majority of the bank stock - most of it is unsaleable at any price. IMHO!



_______________________

 

"Get your facts first, then you can distort them as you please"

Mark Twain

 

 

 




Like 0      
29 Sep 2016 21:17 by Destry Star rating in MYOB . 289 posts Send private message

Cutting prices further will only perpetuate the threads relating to cheap property, evetually everyone will be able to afford a property in Spain. What will happen will happen, foolishness started it, greed will finish it, I'm only pleased that I don't have to worry.


 


This message was last edited by Destry on 29/09/2016.

_______________________
IF YOU WISH TO QUOTE ANY OF MY POSTS PLEASE DO SO IN THEIR ENTIRETY AND NOT JUST A FEW SELECTED WORDS TOTALLY OUT OF CONTEXT. THANK YOU.



Like 0      
29 Sep 2016 21:41 by newworld Star rating. 935 posts Send private message

The system in the UK works well, banks send properties to auctions and they sell at what someone is willing to pay, instead of holding on to properties for years in the chance they might go up ( then they dont ) instead of getting rid and moving on.





Like 1      
29 Sep 2016 22:19 by nigel188 Star rating in Estepona. 625 posts Send private message

Prospective  Buyers beware!!!!!,extra tax payble to Spanish  Authorities due  to low  price of the Property in  relation  to   the Housing Market value.



_______________________

Nigel




Like 2      
29 Sep 2016 22:30 by hugh_man Star rating in Kent/Roda . 1593 posts Send private message

hugh_man´s avatar

Why on earth then has there been a 12% increase in the Spanish residential construction sector?





Like 0      
29 Sep 2016 22:41 by ads Star rating. 4019 posts Send private message

Is this a positive move for the Spanish to finally be able to afford properties at realistic prices (in relation to their earning capacity) or are these repossessed properties not of interest to many of the Spanish nationals due to their awarenesses of extra taxes and poor build quality?

 


This message was last edited by ads on 29/09/2016.


This message was last edited by ads on 29/09/2016.



Like 1      
29 Sep 2016 23:46 by Roberto Star rating in Torremolinos. 4514 posts Send private message

Roberto´s avatar

These properties in question are mostly unsaleable due to the fact that they are in the middle of nowhere. It's got nothing to do with affordability compared to wages, more to do with the fact that they are nowhere near where the wages are being earned. Sit on the AVE for a couple of hours between Málaga & Madrid, and you will see for yourself what I'm talking about. 

Demolition is the only answer, these properties will not even sell at auction. Even squatters aren't taking up residency.

 


This message was last edited by Roberto on 29/09/2016.

_______________________

 

"Get your facts first, then you can distort them as you please"

Mark Twain

 

 

 




Like 0      
30 Sep 2016 07:58 by ads Star rating. 4019 posts Send private message

Are these properties not suitable for short term holiday lets which in turn may boost the local economy and encourage better affordable transport links, or would that be counter productive to the regions Spanish hotel economy?

 


This message was last edited by ads on 30/09/2016.



Like 0      
30 Sep 2016 09:18 by windtalker Star rating. 1698 posts Send private message

If you can remember back when the Spanish banks went bust,and the EU had to bail them out with billions of EU money .The banks in question were ordered by the EU to dispose of the vast property holdings that they had in the form of Repo's and the likes ,These banks in question still have not done so  ,what the bank's have been doing is only releasing a few properties for sale on a monthly basis ,the reason behind this is if they flooded the housing market with cheap property then this would cause a property price crash this is a wise thing for the banks to do, the so called EU political establishment do seem to understand this basically because they only understand politics and don't have a clue how business works.





Like 0      
30 Sep 2016 10:00 by Destry Star rating in MYOB . 289 posts Send private message

I recently watched an episode of A Place In The Sun, where a couple were looking to buy an apartment for a maximun price of £40K, they actually found a really dross one at £35K. Two things come to mind, 1) how much further can they drop? and 2) why was it still standing?

The very old front line beach property is being demolished close to where we stay, with state of the art developments  replacing them, as Roberto says, the only future for the inland unsalables is demolition. 



_______________________
IF YOU WISH TO QUOTE ANY OF MY POSTS PLEASE DO SO IN THEIR ENTIRETY AND NOT JUST A FEW SELECTED WORDS TOTALLY OUT OF CONTEXT. THANK YOU.



Like 0      
30 Sep 2016 10:57 by Tadd1966 Star rating in Los Montesinos. 1755 posts Send private message

Rather than demolition why not get the councils / govt to buy them at a very low price and provide social housing for the homeless etc.



_______________________
“The greatest enemy of knowledge is not ignorance; it is the illusion of knowledge”



Like 2      
30 Sep 2016 17:34 by Roberto Star rating in Torremolinos. 4514 posts Send private message

Roberto´s avatar

"Are these properties not suitable for short term holiday lets which in turn may boost the local economy and encourage better affordable transport links" - short answer, No. Any property that is suitable for anything has probably already been sold at knock-down prices. The remaining stock is largely in locations where people do not go on holiday. Better transport links? Like the ghost airports of Castellón and more specifically Ciudad Real? The reason I mentioned the AVE is because from the train you can see entire villages lying empty because nobody wants to live there - and an entire airport costing billions, lying obsolete because nobody lives there to use it! There's more to Spain (and the construction boom) than the Costas.

"why not get the councils / govt to buy them at a very low price and provide social housing for the homeless etc." Again, because they're in the wrong places. Even homeless people need some basic services, such as places to get food! There are refugee camps in Jordan with better infrastructure than these places. Demolition is the only answer, and at least it will provide some temporary jobs!

 



_______________________

 

"Get your facts first, then you can distort them as you please"

Mark Twain

 

 

 




Like 2      
30 Sep 2016 18:23 by GuyT Star rating. 492 posts Send private message

"These banks in question still have not done so  ,what the bank's have been doing is only releasing a few properties for sale on a monthly basis ,the reason behind this is if they flooded the housing market with cheap property then this would cause a property price crash"

 

They still carrry these properties on their balance sheet at notional 2007 valuations. If they marked to market (realistic valuations) every bank in Spain would be insolvent. This would be the case even if they could sell all their properties tomorrow for what they are getting for "the few properties for sale on a monthly basis", ie no market crash. They are still only gettinng 50% of the valuation on their books. Thy cannot afford to crystalise this loss as then their market capitalisation  would be far below the minimum required by EU banking regulations. They can only extend and pretend.





Like 1      
30 Sep 2016 18:28 by ads Star rating. 4019 posts Send private message

Thinking outside the box but this maybe contentious..... could these properties act as ready built homes to house a quota of genuine existing refugees currently in Europe perhaps (security checked), with EU grants made available in the immediate interim to support necessary local infrastructure (schools and small commercial facilities) with local travel links and agricultural redevelopment options (or other local work options/industry) to act as employment/reskilling/growth opportunities both for unemployed Spanish nationals and refugees alike? It seems crazy to demolish existing infrastructure when refugees in Europe are desperately seeking homes and work and these are structures already built.....likewise opportunities for unemployed Spanish nationals.

Just a thought. (Please don't shoot the messenger ;)!!!

 


This message was last edited by ads on 30/09/2016.



Like 2      
30 Sep 2016 18:56 by Destry Star rating in MYOB . 289 posts Send private message

Well ads,

After reading GuyT's post I fear that your very well meaning suggestion would put paid to the existance of the Spanish banks that are heavely involved in the financing of these properties, due to the debt being settled in total too quickly.

Other than that good on you for caring. 



_______________________
IF YOU WISH TO QUOTE ANY OF MY POSTS PLEASE DO SO IN THEIR ENTIRETY AND NOT JUST A FEW SELECTED WORDS TOTALLY OUT OF CONTEXT. THANK YOU.



Like 0      
30 Sep 2016 19:05 by ads Star rating. 4019 posts Send private message

Thanks Destry,

" After reading GuyT's post I fear that your very well meaning suggestion would put paid to the existance of the Spanish banks that are heavely involved in the financing of these properties, due to the debt being settled in total too quickly. "

Would this be the case if the Banks rented out these properties (once infrastructure/work options etc were in place and with strict EU contracts in place so the Banks weren't at liberty to abuse the EU grants), as opposed to being purchased outright, so a potential steady flow of income (albeit guaranteed low income for a pre-determined timeframe built into EU contracts, so as not to leave occupants vulnerable and open to abusive rent rises)? Better than no income at all?

 


This message was last edited by ads on 30/09/2016.



Like 0      
30 Sep 2016 19:36 by Roberto Star rating in Torremolinos. 4514 posts Send private message

Roberto´s avatar

Nice idea, but what you're proposing sounds a little too much like a ghetto to me. sad



_______________________

 

"Get your facts first, then you can distort them as you please"

Mark Twain

 

 

 




Like 0      
30 Sep 2016 19:43 by ads Star rating. 4019 posts Send private message

I know what you mean Roberto, but if this was for genuine refugees and unemployed Spanish nationals willing and keen to reskill etc (maybe attached conditions to rental), it wouldn't have to be would it?

 


This message was last edited by ads on 30/09/2016.


This message was last edited by ads on 30/09/2016.



Like 0      
30 Sep 2016 19:52 by Destry Star rating in MYOB . 289 posts Send private message

ads,

In the real world the banks are willing to write the property values into their books at knock down prices that they hope will be achieved eventually. Renting out will bring in income as well as heavy wear and tear that would require them to continually keep on writting down the value. As an ex property landlord who specialised in renting out very nice apartments in good areas to young professionals, I well recall the damage that these guys could cause, god only knows what these refugees would do.

Just a thought.



_______________________
IF YOU WISH TO QUOTE ANY OF MY POSTS PLEASE DO SO IN THEIR ENTIRETY AND NOT JUST A FEW SELECTED WORDS TOTALLY OUT OF CONTEXT. THANK YOU.



Like 0      

Pages: 1 | 2 | Next |

Post reply    Start new thread


Previous Threads

Changing name on NIE - 17 posts
Monarch - Air Operators Licence runs out on Friday - 6 posts
property value law - 2 posts
I don't have a legal resident contract and my landlord won't help me get an Empadronamiento?! - 8 posts
Yet Another Rental Car Rip Off - 45 posts
bike test - 4 posts
is it wise to move to Spain post Brexit - 45 posts
Using Spanish words in written or spoken English - 3 posts
Plumber - la Cala de mijas - 0 posts
Liability on a 6 months rental - 3 posts
Esta if you have lived in Spain - 0 posts
Customs duty - 0 posts
Diabetes type 1 - Insulin Depedent - Getting insulin & cost - 4 posts
Parcel service for sending small packets to UK - 8 posts
Satellite TV Costa Blanca South Area - 1 posts
Spanish credit cards - 8 posts
Applying for EU Citizen Registration (forms on line) - 0 posts
Modelo 210 - 8 posts
Tourism Licence - why is ENGLAND not on their list of countries - 6 posts
Mobility scooter - 3 posts
Community owner problem - 16 posts
Driving a foreign car to and in Spain - 6 posts
Healthcare clarification as a resident - 16 posts
Cancelling a direct debit - 8 posts
Childs safety gate - 3 posts

Number of posts in this thread: 24

DISCLAIMER:  All opinions posted on these message boards are the opinion solely of the poster and do not necessarily reflect the opinion of Eye on Spain, its servants or agents.


1 | 2 |
Our Weekly Email Digest
Name:  
Email:
   


This site uses cookies. By continuing to browse you are agreeing to our use of cookies. More information here. x