Re: Re: Sareb’s plan B.

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Anonymous
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@Rocker wrote:

Sareb, the Banco Malo, has now declared that it intends to keep the million plus empty and repossessed properties off the market for at least three to four years. It should stop the price falls and create an artificial shortage of available properties, provided the demand remains the same or even increases.

The policy should stabilise prices in the short term and lead to an increase in the medium term.

Or they’ve just kicked the can further down a rocky road.

This is totally insane. Property prices are bound to be lower in three to four years time compared to what they are now which means that the bank will get even less money in selling their repossessed properties than they would if they tried to offload them now. The bank is clearly trying to manipulate the market by reducing supply but in the long term it cannot possibly work since when they do eventually get around to selling these properties in three to four year time the influx of repossessed properties onto the market will only depress the market further just at the time when everybody will be trying to offload their properties in Spain just before Spain drops out of the Euro and adopts the Peseta.

The bank would be better off taking advantage of the current lull in the flood of bad news stories concerning Europe and offload their repossessed stock now rather than wait in the hope that the market may have improved in three to four years time which is unlikely to happen. The bank is clearly sticking its head in the sand on this one and no amount of market manipulation is going to save the Spanish property market in the long term!

Lets face it. Spain has had a phoney economy since it joined the Euro which fueled the housing boom and Spain will continue to have a phoney economy as long as it remains in the Euro and Spain will only a proper functioning real economy once it drops out of the Euro and adopts the Peseta.

My advise to people out there who want to buy a home in Spain is wait until Spain drops out of the Euro before buying anything in Spain! Spain cannot stay in the Euro because the currency is too strong and what Spain needs is a weaker currency like the Peseta. The Euro represents the industrial strength of Germany and the Euro currency was always inappropriate for Spain.