Re: Re: Press articles about the Spanish property situation


That quote goes on to suggest that the likely future outcome for repossessed property in Spain is the creation of a ‘bad bank’. Rajoy has already suggested he is in favour of that and is some way down the planning road.

It is suggested the government will purchase all banks property portfolios at a 58% discount. The stumbling block is the cost estimated at €100bn. However it would likely be a once and for all solution to the crisis facing the banks and provide some much needed instant liquidity.

Spain does not have that amount of money but could conceivably tap into the EFSF to raise the funds needed. That would need EU approval of course and in the present climate could well be successful.
It is certainly a way around the treaty sanction and German objections on direct lending to Eurozone members by the ECB.

So in theory at least any individual may now go to any bank property web site, choose a property you fancy and offer 58% less for a quick cash sale. Buy now while stocks last. 😀

Actually this may not be as unrealistic as it sounds. For the government there will need to be a degree of compulsion to force the banks to sell at 58% less. So for the individual there is perhaps an opportunity here. On the basis 45-50% less is better than 58%.
This window is unlikely to last long but never the less it may exist in theory. Perhaps that’s why my previous offers I made some time ago to banks now look a good deal, for them at least.

Here is a decent example of the current move to more realistic prices: