Will Residential Property Values Continue to Fall ??
Posted: 13 April 2012 02:26 PM  
Expat
Total Posts:  51
Joined  2011-09-15

“Officially”, Spanish residential values have declined 22% from peak in 2007.

In the same timeframe, US prices have dropped 50% & Ireland 55%.

How much further (if any) are Spanish values likely to drop ???

Cheers,

Andrea

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Posted: 13 April 2012 11:08 PM  
Expatriator
Total Posts:  101
Joined  2011-03-15

The other day I was talking with a rather high-up banking person in a regional bank where I live. His take on things is that the banks - all banks - have such a large stock of properties to offload that at the moment, any serious offer of around 30% below their asking price would be accepted. He reckons that this is true for just about every Spanish bank. Private Spanish sellers are a different matter as the Spanish never seem to be in a hurry to sell, so seem to keep to their asking price for much longer, and then drop less.

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Posted: 14 April 2012 03:37 AM  
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there a big hole out there , yes 30 and see up 40 % off some properties both commercial property and residential but bank are up wall on Borrowing by Spanish banks from the European Central Bank hit a new record in March at €227.6 billion ($299 billion) bank issued eviction orders to get property .... still think it going fall more buy this time next year , look at ireland where NAMA(National Asset Management Agency is a body created by the Government of Ireland in late 2009. It is in response to the Irish financial crisis and the deflation of the Irish property bubble , ) NAMA has published a listing of properties , The banks are also suffering a liquidity crisis due, in part, to their lack of suitable collateral for European Central Bank repo loans. Along with their capital requirement problems, this is limiting the banks’ ability to offer credit to their customers and, in turn, contributing to the lack of growth in the Spanish economy , wich is down ... If the banks were to recognise the true value of these loans on their balance sheets, they would no longer meet their statutory capital requirements. The banks therefore need to raise further capital but, given the uncertainty around the true value of their assets, their stock is in too little demand for a general share issuance to be a viable option

This has happen in Ireland where the bank where bail out by Government of Ireland back in 2009 and then when Government of Ireland need cash , that hand none and the wnet to EU-IMF bailout in November 2010

Spanish bank wont give offers of credit to their customers and try to get customers two pay off loans in fast time then agreement time subsidized loans are Been hit
Banks staff with bullying policys,  that the loans will be repo if payment plan is done in sorter time and sizeable amounts pay up front of the loans . ie 10 year loan now to payed in 5 year and knock 200,000 - 300,000 of the loan now .

i am keep my 200,000 k in the bank to buy next yaer , bank did ask me what i was doing with so much money and told me to lock away for 5 years , i told i going two buy a house and told i need to apply for a loan , i cant used the money in my account ... Sorry Bank of ... it my money resting in your bank ..
Dont for get that .....

One house bought in 2006 3.3 million is now going for 1.8 million , no takers yet ... 4floors Under ground carpark for 4 cars , Gated , grounds 3 gardens with pool , master tv room , dinning room kitchen design, both gas and elec,  pantry and wet room glassed , wash machine dry machine , study room , office room , hallway design staircase , staircase second back off house , 3th floor 4 bedroom with ensuite , balconys (one bedrooms can used as main bedroom are on top floor4 1 bed room ensuite with balcony and terrace garden CCTV , ALARMED , Cat Category 5 cable TDT/satellite , radio intercom in every room and gate1 gate2 electrical cctv doors intercom and , back up power to generate,  i think there missing shotguns and few dogs O for got to tell you undergrond heatting and solor power kit think

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Posted: 14 April 2012 03:45 AM  
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Total Posts:  2854
Joined  2007-10-19

NOT my house , know one off the daughters , did stay in it did the IT system , CCTV , ALARM , Cat Category 5 cable TDT/satellite , radio in it , Guy leg it and bank are try to sell it thay only get the eviction orders start of the year pity i didnt win the La Primitiva loterias try again next week , there hope in them numbers
Jurdy

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Posted: 14 April 2012 07:23 AM  
Expat
Total Posts:  51
Joined  2011-09-15

Well another 30% drop would bring it into line with USA & Ireland.

Certainly creates an issue for anyone wishes to sell !!!

Most unfortunate that Spain finds itself in this position since its got so much in terms of culture, food, scenary etc.

Cheers,

Andrea

RiazorBlue - 13 April 2012 11:08 PM

The other day I was talking with a rather high-up banking person in a regional bank where I live. His take on things is that the banks - all banks - have such a large stock of properties to offload that at the moment, any serious offer of around 30% below their asking price would be accepted. He reckons that this is true for just about every Spanish bank. Private Spanish sellers are a different matter as the Spanish never seem to be in a hurry to sell, so seem to keep to their asking price for much longer, and then drop less.

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Posted: 10 May 2012 05:06 PM  
Tourist
Total Posts:  1
Joined  2012-05-10

Hi all.I am new hereon this site,  but have lived in Spain since before entry to EU.Times were tough then,if like us,you came to operate a legal business.We survived & many years later sold up & retired.Am so pleased to say that business is still operating today under the new owners.The money had to be re-invested &,to keep this short,now I am single & own property other than the one I live in.Previously I rented out a small apartment which I bought as an investment & to date,have had good tenants.However now it is empty as I am concerned that my luck may run out with a new tenant given the state of the economic situation,especially as I did everything legally & actually gained little financially after tax.It was /is an investment I want for my Spanish granddaughter,hopefully to fund her through university.I can afford to keep it so I am reluctant to drop the price even further(I did buy at the height of the boom!)but perhaps I can utilise my asset by doing an exchange within Spain.I realise this is a new concept here but,since I am retired & free to spend time elsewhere,I am wondering if I could do a permanent exchange so that I can spent time in a different location where I own the apartment with someone who is of the same mind.Comments invited.

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Posted: 18 May 2012 09:57 AM  
Expat
Total Posts:  51
Joined  2011-09-15

Some leading economists are now predicting the Spanish residential market will fall a further 35%.

This was before numerous Spanish banks were downgraded by Moody’s plus one major bank rescued by the Government. The 35% prediction is perhaps not surprising given that banks are still hoarding a vast amount of distressed property which has yet to be liquidated !!!

Cheers,

Andrea

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