Spanish Property Insight › Forums › Spanish Property Forums › Spanish Real Estate Chatter › Why Don’t Spain’s Gov’t Clean Their Act Up With Property? › Re: Re: Why Don’t Spain’s Gov’t Clean Their Act Up With Property
Spanish property market was on it’s knees long before bank lending dried up. During the boom our golf club had many new members who were Agents. Most of them were ex-electricians and similar. By 2007 many were leaving, couldn’t afford to pay the fees or some had left the country.
The Spanish market was on its knees simply because prices had skyrocketed to impossible heights and then along came Bulgaria, with its purchase price of €30,000 units instead of a 10% = €30,000 deposit for a Spanish home and… that’s where all the agents went Katy, the all went to Bulgaria, Cape Verde, Brazil, Dubai etc etc.
And the banks were overjoyed and continued to lend to anyone and everyone who had a pulse and a passport, for whatever they wanted, wherever they wanted it. It carried on regardless, just that Spain had priced itself way beyond the rest really
Money is still available anyway for those who are crazy to buy those overpriced blocks from the developers.
Different kind of money though you must agree? You can get a mortgage of 100% today where you never could in 2004, because now the bank owns it, it wants you to own it and get it off their books, because while they own it, it is just being written down as a loss every year.
C’mon now Katy, t’was the banks brought us to this mess, no one else.