metalmike

The property market has been almost non-existent this last year and now the first bank has declared, it looks like something will have to give very soon.
Banco Espanol de Credito, a retail-banking unit of Banco Santander SA said it has 10.4 billion euros ($13.7 billion) of risk linked to Spain’s real estate and construction industry. Spanish banks have “troubled exposure” to construction and real estate of 181 billion euros, according to the Bank of Spain. Madrid-based Pisos Embagados de Bancos has claimed that there are currently 100,000 foreclosed homes on the market and by the end of the year this figure will rise to 300,000.This is an alarming situation and the banks dumping another 300,000 properties with unrealistic values on the market will only support the already massively inflated property values - or will it push the prices down by sheer numbers?
In 2010 the new-build housing sector was just as bleak with new starts in Costa Blanca at the same level as they were in 1952, a tiny % of the starts 6years ago. Municipalities with less than 10 new homes started in 2010 include Benitatxell, Bigastro, El Campello, Castalla, Catral, Crevillente, Guardamar, La Nucia, Los Montesinos, Monforte, Monóvar, Pego, Polop, San Fulgencio, and San Miguel de Salinas, all familiar names in the holiday-home industry.

Mitzyboy

Looks like a bit of cut and paste to me
Are you the master of doom and gloom btw?

anonimouse

Once the UK banks start lending again it will pick up, there are still loads with dreams of living in the sun.

Dick Dasterdly

I don't see too much UK money being pumped into Spanish property in the near future.
In addition to all the present doom and gloom and risks involved, it's looking more likely than ever that UK interest rates will be taking quite a hike fairly soon.

JLFS

A good point Dick D.

Apart from the interest rates, there is also the problems with the reduced pensions that a lot of workers were promised.

Now that the goalposts have been moved and the promised amounts of pensions will not come to fruition, one of the largest chunks of British buyers (due for retirement) have now been frozen out.

With the cuts in what were always thought of "jobs for life" another large group of potental buyers are out of the equation. In the past these were the people who invested in a holday home that was used by the family, but with cuts to child benefit for the earners of 43k, their pot of spare cash seems to have dried up too.

Then there are the people who are in a good position right now, but are thinking of the future and maybe a possible job loss.....they are clinging on to their savings just to be on the safe side.

Also the reports about foreign buyers being unable to sell in Spain, has also put off potential buyers.

In the boom time, a large percentage came out on inspection trips, and were seduced by agents and such, the pound was high and the monthly payments were not excessive.

Most of these companies have gone to the wall, at one time it seemed as though there were more "atllas and Masa" vehicles on the road thean taxis.

Surveys show that great numbers would love to live in the sun or ivest in a property, but due to the falling price of Spanish property many are very wary.
Even a house bought at rock bottom prices ceases to be such a bargain if it cannot be sold on.

billgates

I thought the banks lax lending system was the main cause of all the problems in the first place.

Anyway, the banks will lend, just so long as you've got a sufficient deposit.

metalmike

No my friend, I am not a master of doom and gloom, this information extracted from a global property portal we receive daily. The source of the information is always reliable and fact! I believe that information such as this should be conveyed to and shared with other members - good or bad. Does it matter if the information is 'cut and paste' if it is true fact and of interest to others? I really can't understand why you old brigade have to have a pop at new members at every opportunity - or would you prefer it if only those with over 1000 posts were to use the facility?

Mitzyboy

Err, no. Cut and past is disallowed by the forum owners, therefore in future you should limit it to a link, thats all.

I'm sorry if you thought I was having a pop at you ... not the case at all
I'm not someone who is known for having a pop at new posters :-)

lynnxa

no, you wait till we've been here a while

Mitzyboy

Sod off

agoreira

My little Spanish friend has just popped in to see us on her way home, here in UK, and tells me she will be moving soon. Not selling the current property, she will rent that out, and is buying another property, she's doing fine here!

HBG

The Spanish property market is not in great shape, but the attraction of Spain as a holiday, or a permanent living location is as strong as ever. It’s simply a great place to be in, with the weather and people-friendliness at the top of the list.

Why buy anyway? Renting is safe and acceptable and gives you far more choice.

I personally feel that buying anywhere in the world as an investment, at this time and for years to come, is futile.

ameliapond

More often than not, that's what they are, dreams. With no better prospects I can't see people flocking here as they did in the past. Anyway, boo to doom and gloom!

angiescarr

True.
But newbies will time to learn who those people really are

Dick Dasterdly

Not necessarily,
I've always found that by far the best time to buy property is at times of little confidence, or during a recession when the market bottoms out.
Signs are that it may happen towards the end of this year or early next.
Too soon yet to be certain, but best not to miss the boat.
Money sitting idle in a bank account is losing money at present looking at present day inflation and almost non existant interest rates
Speculate to accumulate.