Spanish real estate bubble
Posted by admin on August 4th, 2009
My star article this week is Realism Rules in Overseas Property. Although not specifically addressing the Spanish property market, it contains 10 pithy and basic questions to ask yourself when buying abroad - anywhere.
The most important one for me is No. 9 - “A property is a long-term commitment if you want to make money from it”.
If more people had actually payed attention to that piece of advice, we would have avoided the worst of the current economic crisis.
Speculation about increasing property prices actually drove the property bubble to bursting point.
Two articles deal with the consolidation going on in the banking sector in Spain. In Three Spanish Building Societies Merge, we learn that three Caixa’s (pronounced kay-sher) in Catalunya are pooling their resources because, individually, they are at risk from the high level of loans in default.
The reasoning is that, even though they’ll also be pooling their bad debts, they’ll also be pooling their reserves, creating enough of a combined financial buffer to hopefully make it through the worst of the economic crisis.
Source: Kyero.com
Tags: spain real estate crisis, spanish property crisis, Spanish real estate bubble
