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Originally Posted by Richie  Written by Spanish property - Spain jobs - Spanish news - think-SPAIN.com
Another article by Spanish property - Spain jobs - Spanish news - think-SPAIN.com for you to read and comment on.
SPAIN appears to be in debt up to its ears.
Money owed to the housing mountain is now the equivalent to triple the country's gross domestic product for this year.
The real estate industry in Spain has now amassed a total debt of more than a 1 billion euros for the first time.
The amount is due in part to the families who are buying or refurbishing their homes, and when added to the amount owed by real estate businesses and builders the total is THREE times the GDP.
A new study from the Risk Centre of the Bank of Spain has revealed that there are more than 30 million mortgages and loans currently taken out to the value of 3.2 billion euros.
The study also says that 16 million Spaniards owe an average of 190,000 euros to banks, which is NINE times their average annual salary.
The survey says the fall in real estate sales being seen now is bringing greater uncertainty to the sector.
Industry sources say loans are to get more expensive in the next few months, but it will be in the area of consumer goods and business loans where this will be noted most.
Some observers think problems will occur only if banks stop lending to those who want to buy more land.
By Spanish property - Spain jobs - Spanish news - think-SPAIN.com
Your comments....... |
We are all painfully aware of the problems but what we all need is answers! What should Developers do to get rid of their backlog of finished and partly finished properties? What can the Government do to put some spark back in to the industry and revive the interest in Spain? I think we all know what owners can do!
Price your houses realistically and be prepared to accept sensible offers; if not don't bother putting your house on the market! We have all heard 'thats the lowest I can accept because I can't afford to move on less' but that doesn't cut it any more. If you can't afford to move then maybe you have to stay where you are. An alternative, maybe not so palatable, would be to look at other countries where the cost of property and living costs are lower. A hard choice but surely the reason many people moved to Spain in the first place? Finally, what can WE do; we have to make vendors realise the state of the market; no point wasting time photographing and listing properties that just won't sell. We all know there are buyers out there but they are faced with incredible choice and we want to have the best chance of success when we commit time and energy to viewings. Ask yourself; do I have the best selection of properties in this area at the most realistic prices? If the answer is 'no' then best do something about it or you could be wasting your time and just bringing another agent one step closer to a sale!
