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According to this link Spain’s “bad bank”, will allocate 500 million euros to demolish real estate in Spain. The demolitions will take place over the next 10 years. Those earmarked for demolition will either be half finished developments or properties that are no longer financially viable to sell. Those developments in better located areas will be completed then sold on.
That is probably one of the more sensible decisions government has made if true. It begs the next question, what happens to the land these half completed developments stand on? Public parks perhaps or simply a land bank for future building.
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I’m not sure I can make sense of this speculation about the future bad bank. Presumably they will inherit most of the toxic assets from the whole property mess. A prime example will be the Trampolin Hills development in Murcia (I hope I’ve got the name right).
A crooked developer took deposits on thousands of homes that were never built and went to prison. He did buy a large plot of land with supposed planning permission for thousands of homes. Only a dozen or so show houses were ever built along with a few access roads and services.
So this development will now be owned by the bad bank. It wouldn’t make sense to complete the development and sell the properties at today’s prices, but neither would it make sense to merely demolish the infrastructure in place. Why? It is only throwing more money away.
It would cost nothing to leave the whole mess as it is and wait until land and property prices increase, even if it takes many years.
Alternatively, they could build a wind farm, or extract oil from any possible shale deposits, or sell it to the US as a badly needed airforce base in southern Europe.
To demolish the site at great cost to return the land to what it was previously, worthless shrub land, would not make sense.
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The decision is significant because it indicates the government and the banks believe demand for private housing is not going to exist over the next decade. New future financial lending for housing is also unlikely to be an attractive prospect for the banks.
Both these signals, if any more were needed, indicate to me that property in Spain is a dead duck in investment terms. -
If I really hated a person I would tell that person to buy a property in Spain. Buying a property in Spain isn’t going to make sense at any time in the next fifty years because property prices will not be keeping up with inflation and anybody who thinks that they are clever by buying at the bottom should realise that if the property is not appreciating in value to keep up with inflation then that property will be losing value in real terms (adjusted for inflation). I cannot believe that there are some on this forum who are waiting for prices to fall further before buying a property in Spain. Spain is finished and it is even more corrupt than Britain which is quite a thing to say given how corrupt Britain is.
All the news stories of Kate Middleton’s pregnancy and the tragic suicide of a nurse who took a hoax call at the hospital where Kate Middleton was staying says alot about Britain. Commiting suicide is the most selfish thing one can do and it is the easy way out because it leaves behind relations who will need to deal with the mess. A person has to have some serious psychological problems if they decide to terminate their existence because they passed on a hoax call to a member of the royal family. The royals are not that special. Another royal parasite on the way then. It has been said that the poor miserable tax payer will have to fork out £2 million a year just to buy baby clothes for Kate Middletons sprog. Marvelous, just when George Osborne announced below inflation increases on Child benefit for ordinary people for the next three years.
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[quote=”logan”
Both these signals, if any more were needed, indicate to me that property in Spain is a dead duck in investment terms.[/quote]I think that has been the case for quite a few years now.
But, as a most pleasant place to live in, nothing much has changed since the first foreigners came to these shores.-
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@logan wrote:
Jake you are a sad soul, get a life for gawds sake. 🙄
You have to remember that Jakey doesn’t need to buy property because he lives in his Mum’s basement eating tinned pineapple chunks and sausage meat. Therefore he doesn’t need to weigh up the cost/benefits of renting v buying. The only time he’ll move out is when house price inflation outstrips other asset class inflation. I bet his Mum is praying for the day 😕 😯
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@Chopera wrote:
You have to remember that Jakey doesn’t need to buy property because he lives in his Mum’s basement eating tinned pineapple chunks and sausage meat. Therefore he doesn’t need to weigh up the cost/benefits of renting v buying. The only time he’ll move out is when house price inflation outstrips other asset class inflation. I bet his Mum is praying for the day 😕 😯
😆 😆
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Totally agree with you Logan and Rocker, to demolish is good news to get rid of oversupply and eyesores but it shows they don’t believe there will be enough demand for more of the same, IMO they will be land banks and Spain will hope for another boom one day, but I think they should be turned into countryside again or parks 😉
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@Jake I never thought I could agree with you. I do agree that another parasite is on its way !!! In so far as the nurse is concerned, she took the responsibilty though an extreme one & to the cost of her loved ones.
If you keep on posting a lot of us on the forum users may take the same step as her. I suppose you will take this step when the price of tin in the commodity is so high that a pine apple could not be packed in it.
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