Who do Spaniards blame for Spain’s property market crash?

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This topic contains 6 replies, has 6 voices, and was last updated by Profile photo of Aunty Val Aunty Val 8 years, 4 months ago.

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  • #54221
    Profile photo of Anonymous
    Anonymous
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    There is an interesting debate going on amongst readers of the Spanish daily ‘El Pais’ at the papers website on who is to blame for Spain’s property market crash. I’ve translated a few of the comments, which you can read here:

    http://www.spanishpropertyinsight.com/buff/?p=195

    Something else I’ve been meaning to point out for ages: When I talk to ordinary Spaniards about all the problems in the property market, like over-development, illegal building, corruption, land grabs, and what have you, they are just as appalled as anyone. Many of them are suffering the consequences.

    Mark

  • #85574
    Profile photo of Anonymous
    Anonymous
    Participant

    I’m in a local association to help property owners. It’s called AULAN and is for the Levante Almeriense.
    We were talking today about ‘Land grab’ which is now creeping into eastern Andalucía (Garrucha, Bédar and probably the POTALA – the Junta’s master plan for the Baja Almanzora). But, how do you translate ‘Land Grab’ while keeping the emotive meeting? ‘Compra forzosa’ or ‘Adquisición obligada’ or whatever doesn’t have enough kick. ‘Mangada institucional’?
    Find the right expression and we can go to the press with it.
    It is time to fight back.

  • #85588
    Profile photo of Anonymous
    Anonymous
    Participant

    Good on you Lennox!!!

    best wishes with your work!!

    Bettyboo

  • #85590
    Profile photo of Anonymous
    Anonymous
    Participant
    mark wrote:
    There is an interesting debate going on amongst readers of the Spanish daily ‘El Pais’ at the papers website on who is to blame for Spain’s property market crash. I’ve translated a few of the comments, which you can read here:

    http://www.spanishpropertyinsight.com/buff/?p=195

    Something else I’ve been meaning to point out for ages: When I talk to ordinary Spaniards about all the problems in the property market, like over-development, illegal building, corruption, land grabs, and what have you, they are just as appalled as anyone. Many of them are suffering the consequences.

    Mark

    Mark I quite agree with what you say, the average Spaniard is dramatically caught up in the crisis. There seems to be no one reason/cause that the Spanish blame for the crisis. They moan about the banks, the government,but seem oblivious to the fact that it was a boom that was allowed to go on for too long by a government that seemed preoccupied by gay and women´s rights. Zapatero/Solbes should have slowed down lending a long time before, but of course there was a general election to be won ,so all the bad news was hidden and the boom was allowed to go on.

    I think a lot of the immigrants will be caught up in the crisis , many were encouraged to take out loans,mortgages and now the chickens are coming home to roost. I was talking to an Ecuatorian lady yesterday , she is at her wits end she can´t find work, her dole money finishes soon, she has to provide for an elderly mother and a young daughter, she wants to sell and pay off her large mortgage; but realises there are no buyers. She just does not know what to do, I warned her to be very careful about these refinancing schemes, which cut immediate costs but are a millstone for decades.

    It seems on talking with Spaniards that Zapatero still is quite popular, this is in stark contrast to the UK where Bliar/Brown are so detested. Even though I have lived in Spain for a long time , I still find it difficult to make out how they tick. Spain is a new democracy, complaining in public has only been tolerated for the past 33 years, perhaps they still do not trust foreigners . Franco for many years built up a hatred of all things foreign in the Spanish mind. It would make a fascinating debate to compare the Northern European mind/character with the Mediterranean /PIGS character.

    I cannot say who the Spanish blame for their problems, rather like asking 9 economists for an opinion one with end up with 10 different ones.

  • #85591
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    Anonymous
    Participant

    Just based on my own personal experience, I know of several cases of immigrants who are heading for financial disaster after buying a Spanish property.

    For example, the Ecuadorian maid of some friends. Husband worked in construction, she as domestic help. They bought a property during the boom and took out a mortgage at their financial limit, when times were good. Now he is out of work, mortgage rates have doubled, and they are what the Americans call ‘mortgage delinquencies’. Furthermore, like many immigrants who are a bit green when it comes too financial products, they were given terrible mortgage terms. I suspect there thousands of cases like this.

    Article today at Reuters highlights the problems brewing in the Spanish mortgage-backed bond market.
    http://www.bloomberg.com/apps/news?pid=20601170&refer=home&sid=avLtlLCD0wcQ

    When it comes to mortgage defaults and bank repos, we ain’t seen nothing yet.

    Mark

  • #85593
    Profile photo of Anonymous
    Anonymous
    Participant

    To me the MAIN blame should rest on two bodies.

    The college of Architects & the Respective Council’s Planning department.

    They, should have the information as to their requirement, infrastructure, to support demand and should have given planning permission for them only. Any illegal works should have been nipped in the bud. This way we would not have the 2 million of so excess built.

  • #85600
    Profile photo of Aunty Val
    Aunty Val
    Participant

    The older Spanish in our village have a fairly philosophical view of what is happening. Many of them are still affected by the Franco years so this “little hardship” is nothing to them.

    Many younger Spaniards have a different view and many of them “blame” (that may be too strong) the influx of foreigners. Having said that, they are quick to forget the greed that their parents had in upping their property prices to take advantage of the market.

    The main problem is that prices have risen so far that many locals find it hard to afford the properties that are available – now that prices have come down (and will continue to do so) they will become more achievable for many.

    Obviously, there are many that will be affected by the current issues but there are probably many more that don’t see it as a problem – not having a mortgage helps!

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