Re: Re: Guardian article – Spanish Property Crash


I agree most of the bank property is at the lower end of the market. However you might expect that the less well off will likely default on their mortgages first. Here’s but 2 examples.
My point was the sheer scale of the problem for the caja’s.
Each repossessed property represents a financial burden on the bank that requires servicing. There are pages and pages of the stuff on every site and in every location.
I don’t believe the banks don’t want to sell them. Every indicator I see reveals they are extremely keen to off load them.
However it’s going to take many years before the market at this level is normalised or stable. That also has a knock on effect to the upper range of property.
Anyone thinking of entering this market in the current state needs to consider that.