Reply To: Severe correption in property market & bargain times

#74767
mike
Participant

@Just Frank wrote:

Hi

What are the views now from the the posts of doom and gloom for the financial and property markets following the sub prime lending situation.
As it appears to have at the moment to have been a blip, will they review the Spanish market different now that record numbers of Brits are leaving this country with Spain very much at or near the top of the list.
Could it be these experts are wrong again ?

Frank 8)

http://www.ft.com/cms/s/0/d7a4be24-5b1c-11dc-8c32-0000779fd2ac.html

This danger has already materialised for vehicles that depend on the asset-backed commercial paper sector – short-term notes backed by collateral such as mortgages.

In recent weeks, investors have increasingly refused to re-invest in this paper.

Which means anyone wanting to buy a property will have to jump through hoops to convince a lender that they are a good credit risk and then they will pay a hefty premium on top of euribor.

It’s like that scene in all the roadrunner cartoons where the baddie has run over the edge of the cliff, his legs are still moving frantically, and he still hasn’t fell………………..until he realises where he is and then he drops like a stone.