Re: Re: Why Don’t Spain’s Gov’t Clean Their Act Up With Property

#107535
GarySFBCN
Participant

Remind me when the credit crunch started

I don’t believe that Mark was referring to a credit crunch as being a problem. It was cheap and easy credit, credit that banks would have never given it they had followed their own rules regarding the credit-worthiness of the borrower, including their ability to repay, that is ONE FACTOR in this mess. Cheap money allowed the prices to increase. No cheap money, no unsustainable increases in the price of real estate.

As for the illegal developments, the very first hint of this in the press should have resulted in action by Spain AND ALSO by those seeking to purchase. I’ve seen many insulting references here about how “lazy” Spaniards are. After the first news of illegal developments, anyone who proceeded to purchase without doing their due diligence was also lazy. Expecting that everything is going to be as it is in the UK is lunacy.

Due to my cynicism about human nature, I never would have bought into a development before it was finished. And I never would have bought without consulting a bevy of experts. That doesn’t completely eliminate my risk, but I can’t help but to think that SOME people could have avoided these problems.

Maybe this is the difference between me (or Americans) and you all in Europe. I expect that anyone trying to sell me something is a criminal. This is my starting point for negotiations.

Back to the issue, I agree with Mark: There are many causes of this mess.

Sadly, there aren’t many solutions.