Spanish Property Market "lurches From Paralysis Into Freefall"

[Realistbear]

http://business.timesonline.co.uk/tol/busi...icle4368519.ece

The Times July 21, 2008

Britons risk losing Spanish holiday homes

Thousands of Britons face losing their dream homes in Spain as the country's

property market lurches from paralysis into freefall

.

With prices estimated by one survey to be falling by 20 per cent and credit increasingly hard to come by, last week Martinsa-Fadesa, one of the country's largest homebuilders, said that it could not keep up its payments and filed for protection from its creditors - the latest and largest property company to take such a drastic step.

Quite predictable really as these poor sods possibly suffered most from the importation of Gordon's disease (HPI-MEW-BTL). My sister lives down there (rents) and she said many of the locals do not understand what is going on as they have never know a "bust" in their long history. Welcome to Gordon's world Amigos!

Edited July 22, 2008 by Realistbear

[Havoc]

Gordon's disastrous campaign of house price inflation is going to cripple the rest of Europe it seems.

[VeryMeanReversion]

One of the founders of the company I work for bought a flat in Barcelona last year. It had been on the market for 18 months and he secured a 20% price reduction. He thought that was the bottom of the market. (!)

He doesn't talk to me any more....wonder why.

Two other colleagues bought in the UK last year. They were made redundant a few months after their purchase. Risky times methinks.

VMR.

[gordonbrown]

Gordon's disastrous campaign of house price inflation is going to cripple the rest of Europe it seems.

I never realized Gordon Brown was the Spanish chancellor and prime minister as well. I heard he was also responsible, for the crucifixion of Christ and the sinking of Atlantis. Just as well my bobble hat is tin foil lined so he won't be able to use his lizard mind control on me. Or you could be talking sh1te. Hmmm I wonder

[Joey Buttafueco Jr]

I never realized Gordon Brown was the Spanish chancellor and prime minister as well. I heard he was also responsible, for the crucifixion of Christ and the sinking of Atlantis. Just as well my bobble hat is tin foil lined so he won't be able to use his lizard mind control on me. Or you could be talking sh1te. Hmmm I wonder

he also sets EU interest rates. Probably.

[Sheer Heart Attack]

I never realized Gordon Brown was the Spanish chancellor and prime minister as well. I heard he was also responsible, for the crucifixion of Christ and the sinking of Atlantis. Just as well my bobble hat is tin foil lined so he won't be able to use his lizard mind control on me. Or you could be talking sh1te. Hmmm I wonder

I thought Khalid Sheikh Mohammed was now responsible for everything, including HPI.

[Justice]

Gordon's disastrous campaign of house price inflation is going to cripple the rest of Europe it seems.

Just the parts where brits all buy into.

Much of Europe is much better placed to ride out the storm/meltdown than the UK.

Spain is toast because it's not just brits but also Germans that fanned the flames of ever increasing house prices and then all the spanish jumped on the bandwagon and spain is now dealing with the results.

30k for a 2 bed flat not too far from the med is my target price by the time you throw in the cost of air travle going up.

The EU might come to spains resque but who's going to come to the UK's resque ?

Italy might get kicked out the EU but apart from that look at all the low wage countries that are joining and thats why the Euro will continue to rise.

[Laura]

With prices estimated by one survey to be falling by 20 per cent and credit increasingly hard to come by

Meaningless!.....20% a week? - Month? - Can't be as long as a year.

20% of (one 'f') their peak 'value' is probably where it will be at

[interestrateripoff]

The company, which has sold hundreds of thousands of holiday homes, has vowed to complete the 12,500 homes that have already been paid for - in many cases by British people - but analysts fear that may be optimistic, despite the personal fortune of Fernando Martín, the company's multimillionaire owner and the former president of Real Madrid, one of the world's biggest football clubs.

I hope they paid for these homes on their credits!!!!

What was the average price of these now unbuilt homes? I would assume many of these people have forked out £100k+ on thin air?

[Guest Winnie]

I never realized Gordon Brown was the Spanish chancellor and prime minister as well. I heard he was also responsible, for the crucifixion of Christ and the sinking of Atlantis. Just as well my bobble hat is tin foil lined so he won't be able to use his lizard mind control on me. Or you could be talking sh1te. Hmmm I wonder

RB is right. British extravagance and MEW enabled them to buy even more property in their beloved Spain, which encouraged massive over-building.

Cause and effect.... I mean you don't think the Spanish would have created their own HPC without the profligate holidaymaker/ retiree/second-homer from materialist Britain do you?

Your sarcasm suggests you ae either a junior whom newLiebor have asked to act as troll on sites like these - or you are a Spanish home owner, or one of that desperate little crew of RB bashers - whichever - you are clearly disgruntled.

[Mr Nice]

The EU might come to spains resque but who's going to come to the UK's resque ?

umm, the EU?

[bobthe~]

RB is right. British extravagance and MEW enabled them to buy even more property in their beloved Spain, which encouraged massive over-building.

Cause and effect.... I mean you don't think the Spanish would have created their own HPC without the profligate holidaymaker/ retiree/second-homer from materialist Britain do you?

Your sarcasm suggests you ae either a junior whom newLiebor have asked to act as troll on sites like these - or you are a Spanish home owner, or one of that desperate little crew of RB bashers - whichever - you are clearly disgruntled.

I blame "Auf Wiedersehen, Pet"

[OLDFTB]

With prices estimated by one survey to be falling by 20 per cent and credit increasingly hard to come by

Meaningless!.....20% a week? - Month? - Can't be as long as a year.

20% of (one 'f') their peak 'value' is probably where it will be at

Crikey, thats a bit bearish isn't it?

[Wad]

I read earlier this week that something like 60-70% of jobs in Spain have their wages index linked to inflation.

I assume this means that the only way their economy can adjust is by losing jobs. And if they are not allowed to sack people, then that may have to be by bankruptcy. And if they are not allowed to go bankrupt then that means Nationalisation. And if the Government can no longer afford to do that then they will have top print their way out of their problems. And if they can't do that...well, I don't know.

Your analysis is right. The bit you missed is that the end point is a depresison in which nearly everyone losses their job or if on the Govt payroll they do not get paid and the Govt is bust as well.

By the way - talking of Spanish speaking countries I notice Argentina re-nationalised its airline today. Could be the beginning of a trend to Govts nationalising failing assets including their property and banking industries me thinks!

[Laura]

Crikey, thats a bit bearish isn't it?

I don't think so

Not if you have seen Torrevieja (& other ghettos)

AND looked at pre-loon-boom Spanish property values

[lets get it right]

I never realized Gordon Brown was the Spanish chancellor and prime minister as well. I heard he was also responsible, for the crucifixion of Christ and the sinking of Atlantis. Just as well my bobble hat is tin foil lined so he won't be able to use his lizard mind control on me. Or you could be talking sh1te. Hmmm I wonder

He has stolen £5 billion a year from our pensions - every year - cumulative effect - catastrophic

He said he wouldn't preside over a housing boom and bust

He stood by and watched consumer debt go from 650 billion to 1.43 trillion and endlessly claimed credit for growth in the economy

He introduced a tax system so complicated that tax credits are a fiasco

He has milked the housing boom mercilessly for increased taxes

He has raised taxation to the highest level - as a proportion of GDP - in history

He has invented more stealth taxes than any previous chancellor

His governments have introduced 8000 new laws in the last 11 years

We are the most watched society in the world

I could go on but you know the rest.

The man has been a disaster for this country.

Like ALL previous Labour administrations, when this one gets kicked out of office, the country will be half-way down the plughole and it will be someone else's job to turn things around.

Last time we had Thatcher to do the job. Who do we have now?

[Wad]

I read earlier this week that something like 60-70% of jobs in Spain have their wages index linked to inflation.

I assume this means that the only way their economy can adjust is by losing jobs. And if they are not allowed to sack people, then that may have to be by bankruptcy. And if they are not allowed to go bankrupt then that means Nationalisation. And if the Government can no longer afford to do that then they will have top print their way out of their problems. And if they can't do that...well, I don't know.

Your analysis is very right. The bit you missed though is that the end point is a depression in which nearly everyone losses their job or if on the Govt payroll they do not get paid and the Govt is bust as well.

By the way - talking of Spanish speaking countries I notice Argentina re-nationalised its airline today. Could be the beginning of a trend to Govts nationalising failing assets including their property and banking industries me thinks!

Edited July 22, 2008 by Wad

[Justice]

He has stolen £5 billion a year from our pensions - every year - cumulative effect - catastrophic

He said he wouldn't preside over a housing boom and bust

He stood by and watched consumer debt go from 650 billion to 1.43 trillion and endlessly claimed credit for growth in the economy

He introduced a tax system so complicated that tax credits are a fiasco

He has milked the housing boom mercilessly for increased taxes

He has raised taxation to the highest level - as a proportion of GDP - in history

He has invented more stealth taxes than any previous chancellor

His governments have introduced 8000 new laws in the last 11 years

We are the most watched society in the world

Yes i agree but all that will happen is the Cons will get in and introduce yet more taxes and blame all the current troubles on labour.

It's good cop, bad cop and you need to understand that all 3 main parites are in bed togeather so don't go thinking anything is going to change for the good of the people.

I'm voting BNP because they are not in bed with the others and i see nothing wrong with wanting british jobs for british people and i also want the chavs back to work.

[Bearback Mountain]

I'm voting BNP because they are not in bed with the others and i see nothing wrong with wanting british jobs for british people and i also want the chavs back to work.

Ooooh!!!!!!! dont say that word round here, the lefties will be out in force calling you a jack-booted skin, or something like that.

[Mrs Bear]

He has stolen £5 billion a year from our pensions - every year - cumulative effect - catastrophic

He said he wouldn't preside over a housing boom and bust

IMO if it hadn't been for Gordon's raid on pensions, the BTL epidemic and consquent HPI would not have been nearly so bad. People ceased to trust pensions (and who can blame them?) and started to look on property as an alternative. They imagined that at least they would have some control over a tangible asset, which is more than you can say for pension funds managed by fat cats who would get their huge payoffs regardless of what happened to the little people's money.

[Wires 74]

RB is right. British extravagance and MEW enabled them to buy even more property in their beloved Spain, which encouraged massive over-building.

Cause and effect.... I mean you don't think the Spanish would have created their own HPC without the profligate holidaymaker/ retiree/second-homer from materialist Britain do you?

Your sarcasm suggests you ae either a junior whom newLiebor have asked to act as troll on sites like these - or you are a Spanish home owner, or one of that desperate little crew of RB bashers - whichever - you are clearly disgruntled.

No Winnie it`s you whose barking - to suggest that a couple of hundred thousand Brits clinging to the Spanish Coast were somehow responsible for Spanish HPI is erroneous at best - try a 2% EU interest rate and rank naivety instead ...

Of course it could be that yours is an ironic post ...

[Agentimmo]

No Winnie it`s you whose barking - to suggest that a couple of hundred thousand Brits clinging to the Spanish Coast were somehow responsible for Spanish HPI is erroneous at best - try a 2% EU interest rate and rank naivety instead ...

Of course it could be that yours is an ironic post ...

I don't care who started it. Gordon, Maggie, the ECB, the BoE etc etc.

It's in full crash mode now and is great to watch all those who bought their place in the sun by piling on the debt burn, burn burn...

Maybe now they'll give the rest of us some peace and we won't have to listen to them mouthing off in restaurants, planes, bars, the Tube, etc etc about how rich they are as their place is jumping by 20% a year.

I love the Sound Of Silence