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Richie · 10-26-2007, 12:09 PM

Written by thinkspain.com

Another article by thinkspain.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 thinkspain.com

Your comments.......

Homefinder · 10-26-2007, 03:42 PM

Well done Webmaster - this is going to start a lot of discussion.

ThinkSpain is a good news service. I have written a several articles about the Spanish Real Estate and Tourism Crisis which are biased towards estate and rental agencies points of view.

These are articles and it is not a forum. Nevertheless if anyone wants to include an article on the general topic I would be pleased to include it. Send me a PM.

Homefinder

granadapropertyspain · 11-02-2007, 06:53 PM

This is a sad state of affairs, if only the greed and euro signs in developers and agents here in Spain didn't appear we wouldn't be in this situation - along with the banks.

The Spanish property market has been shot and everyones got blood on their hands!

Sahl Hasheesh · 11-26-2007, 03:15 PM

Quote:

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!

Matthew King · 11-26-2007, 05:05 PM

Quote:

Originally Posted by Sahl Hasheesh

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.

The problem is many people bought their properties in Spain during the boom, which means they spent too much buying their homes in the first place.

The market was due a correction, but behind these properties, theres real people with real lives - they can't afford to take a 100,000 loss, that will affect their standard of living for the rest of their lives. That's why many put their properties on the market, and just wait it out.

There's a huge problem in Spain with unprofessional agents allowing vendors to dictate their own prices, without reasoning or education on the market from the agent - and that's part of the reason we're in this mess now.

Vendors aren't all just going to drop their prices, they'll sit it out where they can afford to and wait for the market to catch up with them, if they can't afford to sell now, they'll rent their properties and move on. It's going to be a long bumpy road for Spanish Real Estate.

Homefinder · 11-27-2007, 04:26 PM

We all have far too many properties listed.
Personally, I currently have more than I could sell in 5 years.
They still keep coming in, even though I continually try to get sellers to modify.
10% - 20% over is acceptable because the seller might take an offer or ask me to reduce after a few months (I do this willingly).
However 50% more is right over the top and just a waste of time listing it when you bear in mind that each one is 3 - 4 hours work (Making a valuation, discussing the price, taking photos, writing the description and unloadinmg it).

The problem of course is, that if you refuse to list at a rediculous price there will always be another agency prepared to take it on.
Then, 6 months later, the seller sees sense, reduces it to something reasonable, it sells and you have lost out.

Perhaps someone should be brave enough to list -

1. Current Valuation . . .
2. Offers Invited Around . . .

Homefinder

Sahl Hasheesh · 11-27-2007, 04:51 PM

I really am not prepared to list properties at an unrealistic price unless it is in an absolutely stunning location where someone may be prepared to pay 'over the top' to acquire it. Other than that I will explain my reasons and politely suggest that they may like to place it elsewhere. It really is not worth the time and the constant revisiting of the database to chase owners whose properties are not moving to reduce their price. Maybe if I did rentals I could see the sense; if it hasn't sold after 6 months they may consider renting.