May 14, 2008 at 6:44 am #53942
Spanish building slump reported this morning about 5.30. Nothing new to those on this forum. Saying about developers going bust, prices 20-30% down, people not being able to sell, building companies on short weeks, brick manufacture well down on production etc.
Spains finance minister was shuffling about, trying to say that he thought recovery would be in the next year or two if, and he even said it’s a big IF, ”certains conditions could be met”…..or some waffle like that.
As usual, no mention of all the pre-credit crunch problems that caused most of the damage.
May 14, 2008 at 5:05 pm #82481
May 14, 2008 at 5:50 pm #82487
“walk away and just to let the bank have it, which means we lose absolutely everything.” ” – Classic. Borrow money, can’t pay back for whatever the reason so turn your back on it and let others pay higher interests and lose interest, just to cover the debt.
Hope we are not supposed to be sympathetic?
May 14, 2008 at 7:52 pm #82492
This is not something that is unique soley to Spain. Many are painting such a bleak picture of Spain when it is happening all over the world. You buy a property in the U.K or anywhere else for that matter. You can´t find suitable employment, can´t keep up the mortgage… Tragic and devastating for many, but that is the sitiuation in many countries at the moment. We can only hope that eventually things will get better and confidence comes back.
May 15, 2008 at 6:25 am #82498
This is a Global readjustment. Painful – yes for most of us. Devastating – yes for some.
When this is over, markets will become more stable and credit will return.
What I don’t understand is why the stock markets are moving up despite the news. Do they know something we don’t?
May 15, 2008 at 6:39 am #82499
That does seem strange? Could it be that stocks look safer or more attractive to those whould have invested in property previously i wonder?
May 15, 2008 at 7:16 am #82500
Yes – true Goodstich44.
Also, do the markets respond 2 years before house prices etc? Are they expecting a ‘bounce-back’?
May 15, 2008 at 8:24 am #82506
well who really knows? I think it would be a brave person who predicted a two year bouce back for property in Spain?. I think the aftershocks of massive over supply, corruption, court cases dragging on for years, and incomplete, unfinished and ugly areas, will cause confidence problems and bad press for many years, even after the credit crunch has sorted itself out.
I’m certainly no expert though, and really hope i’ve got that very wrong. Perhaps Spains old attraction of climate and location and ever cheaper properties?, will get things back, faster than looks likely to me at the moment?
May 15, 2008 at 9:00 am #82512
Tough one Goodstitch. Whilst it is slow there are buyers around. They are all lifestyle buyers – I have been fortunate enought o see three this week which is too much of a shock to my system.
Alongside this are spanish investors who are looking for deals. However there arent enough to keep every agent alive yet so what we are seeing is a normal market now and some people who couldnt buy fpor cash in the boom years are now out and about.
I feel there will be oversupply in certain areas for many years now and ot will be slow there. Also in the Sur last week it was reported many large developers are turning to the rental market to supply cheaop housing. Trouble is theres no industry here to keep them in work – that needs to be addressed and the labour laws as many companies would set up here if they could
The way the world is changing, the internet allows people to work from home, so young familes wanting a house with 4 beds to use one as an office is another little niche.
And people making money in other areas/countries are buying villas here – some having their own built, but very few investors as they cannot get the finance now
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