- This topic has 12 replies, 7 voices, and was last updated 10 years, 7 months ago by
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We are into the reporting season with Spanish banks all showing a big growth in trading profits, mainly on Spanish Govt. bonds. That’s not sustainable, but at least it’s some sort of good news.
Banks also revealing how many homes they sold last year. For example:
Caixabank: 18,000
Santander: 15,000
BBVA: 14,390Developers, on the other hand, are selling next to nothing. The world is upside down. 😯
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Until the banks start lending again this situation will continue. You have to ask why would they? Their unsold stocks of property are still at record levels so why introduce market competition? They can charge what they like and offer built in mortgages with crazy conditions. Sabadell is currently offering 30 year interest only mortgages on their stock. 😯
The banks rule the Spanish market and as long as that situation continues the consumer will get a very poor deal indeed. Every investor knows interest hikes are waiting around the corner. The Euribor is bound to rise soon. Any on the ‘edge buyer’ will then find themselves in a very dark hole. All this crap should carry a health warning.
Financially savvy buyers would do well to keep away until all this stupidity is cleared from the market and financial norms return. My best guess 4-5 years. The market crisis is not all over.
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Couldn’t agree more logan, these Bank sales generally seem overpriced compared to same stock with agents, come with high LTV mortgages, once bought = negative equity, crazy, 30 year mortgages, some properties might have fallen down by then 🙄
Spoke to a lady in UK yesterday, bought a property some years ago near Lake Vinhuela Malaga region for 300k, now still cannot sell for 170k, and she says the trouble is not only are there a dozen others near hers that are Bank repossessions at 100k, but several are falling down nearby because of rains washing the earth away from under the slabs (not proper footings). She blamed Brits selling to Brits during the ‘boom’ 🙄
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I would like to know, how many of the above were sold to contacts at knock down prices, to separate companies set up by the banks, large investors i.e. funds etc and finally to Joe public.
I do not see the point of blaming Brits, Germans, Spanish etc. They were doing their jobs is to get the best price for their products. It is buyer be aware .
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It seems that flats are being double sold to individuals and vulture funds:
http://www.abc.es/economia/20140203/abci-sareb-vende-fondo-buitre-201402022044.html
I wonder if they count twice in the stats?
(Also gives a new meaning to the name “banco malo”)
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Big Banks’ Home Sales Fell in 2013
Spain’s large financial institutions also suffered plummeting home sales last year. In 2013, Santander Bank sales falling by more than 50% ……..
http://news.kyero.com/2014/02/07/big-banks-home-sales-fell-in-2013
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I note from that Kyero piece that Sabadell through their estate agent arm Solvia sold the most properties, mostly to foreigners. That fact illustrates the power of marketing.
Mugs everyone. Solvia are one of the villains. They market their properties very cleverly and are foreigner user friendly. Buyers don’t realise they will pay much more through them than current private sales.
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Yes Shakeel it’s a market but as I see it this forum is about giving the best advice to help consumers. I have seen bank properties on average €20k more than the private sector equivalent. Of course they come with built in mortgages with the banks and that’s why they can out perform the private seller.
It’s not a level playing field.
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