Re: Re: Eurozone failure and the Spanish property market.

#102098
Anonymous
Participant

@kgpoc wrote:

I am quite simply a buyer, ……………I already guessed that much…….

The prices quite literally have to go back to 2002-2003. Will it get there, doubt it, will I bite the bullet or use more Vaseline? Yes, but the economics are still not there.

Just an example: Would you sell a property you purchased for 400.000euros for 200.000euros, with a 400.000 mortgage and end up owing the bank for the rest of your life? Or would you hang on to it?
I think it would be the latter….and so do most stubborn spanish trying to sell…

If you can’t afford to hang on to it, you get repossesed….and what the banks are doing with the repos is offloading the garbage and keeping hold of the good ones until it picks up….or they are renting out the ones with potential to cover their downfall costs and then will offload them when prices start rising, eventually…

so if you are after bargains, don’t expect to bag one that will ever be worth more than a 2002 price…

Hence my sources telling me that the good ones for sale do sell, at a reduced price but not at a 2002 price…

this vicious circle could go on forever…..buyers are waiting for sellers to drop their prices, sellers are waiting for buyers to buy, banks are repossessing and keeping hold of the good ones and renting them to cover their costs and selling off the ones no one wants anyway, at huge discount prices…