- January 16, 2014 at 11:34 am #57913
Just as you may have thought Spain does not need any more properties coming on to the over supplied market there is news that SAREB (bad bank) are to finish 130 abandoned developments for resale. The article claims there is an actual shortage of property in some none tourist regions.
- January 17, 2014 at 11:00 am #119020
I am takings bets that these properties where ever they are would be over priced & with a unsuitable mortgage products.
- January 17, 2014 at 11:40 am #119023
I think you’re both right with your views on this 😉
As I understand it, Sareb along with some other Banks often sell their bad property assets by giving 100% (or nearly) mortgages to make things easier for them and the buyer, but the trouble is, in order to get the large mortgage the Bank sticks a premium on the property value over and above what agents are advertising them for, seems sharp practice to me. Presumably, the truer value is the agent’s valuation which in effect leaves the buyer in negative equity straight away but with an excessively high Loan To Value mortgage 🙄 Recipe for disaster again, hard for agents to justify upping their prices to match Bank valuation, and the buyer left high and dry, the Banks have got to get real and sell at correct values IMO 🙄
- January 17, 2014 at 1:12 pm #119024
…the Banks have got to get real and sell at correct values IMO 🙄
Or buyers have to have more sense in ignoring over-priced bank marketed properties forcing the banks to market them for more realistic market prices?
Only in Spain would a bank spend money completing unfinished properties in an over-supplied depressed property market! In fairness the properties do seem to be in more desirable city locations and it appears they will be marketed to investors rather than end users but still, it just doesn’t seem sensible to me for banks to spend money on putting yet more properties into a dead property market.
- January 17, 2014 at 1:57 pm #119025
The problem currently in Spain is the banks and the SAREB have a virtual strangle hold monopoly on the property market. This news tends to support my belief they and the banks of Spain intend to retain that monopoly until at least their stocks are sold off.
The remaining private sellers are dependent on cash buyers because the banks will not lend at realistic levels for new business. You would need around 50% of the purchase price to get them interested and charge you a higher rate than is decent.
So I guess the SAREB are pretty confident their market share is secure.
- January 17, 2014 at 6:46 pm #119026
Banks either have a monopoly or run a cartel
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