Spain Foreclosures Spread to Once Wealthy


By Patrick   Follow   Tue, 30 Oct 2012, 12:30pm   1,057 views   12 comments
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http://www.bloomberg.com/news/2012-10-08/spain-foreclosures-spread-to-once-wealthy-mortgages.html

Repossessions are encroaching further into the city centers, like an overflowing river, said Emilio Miravet, head of real estate finance at the Spanish property unit of advisory and investment firm Catella AB. At the beginning of the crisis, it was homes in the periphery areas belonging to the less affluent that were being foreclosed upon.

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  1. bob2356


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    1   2:56pm Tue 30 Oct 2012   Share   Quote   Permalink   Like   Dislike  

    Spain is toast, it needs to default and get out of the euro, not that there is any force on earth that can prevent it anyway. When Catalon secedes and creates their own currency I'm going to take advantage of the opportunity to arbitrage a new currency to buy a house in Girona right on the bay of roses.

  2. Patrick


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    2   4:13pm Tue 30 Oct 2012   Share   Quote   Permalink   Like   Dislike  

    I met a Catalan guy once who was definitely very determined to help Catalonia secede from Spain. He would get angry if you said he was Spanish.

  3. David Losh


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    3   8:17am Wed 31 Oct 2012   Share   Quote   Permalink   Like (1)   Dislike  

    My children were born in Spain, Barcelona, and I keep up with housing prices there. I like Spain a lot.

    However, back in 1996 I was going to buy an apartment there, and thought $60K was a little steep. In 2008 when we were last there those condos were selling for $220K.

    Alright, help me with the math on that but it seems to me that is three or four times the price in about ten years. The guy we rented from owned twenty of those units, and had sold six, so he was stuck with fourteen, which he bought for a variety of prices.

    As I understand, people from all over Europe bought second homes in Greece, Italy, and Spain with Euros, and that's what ran up the pricing so insanely.

    We only think we have a problem, Spain doesn't have bankruptcy, from what I understand, so that means banks are still holding on to worthless properties.

    I checked pricing on a place in Spain, and the immobliare said $400K without batting an eye. It's a foreclosure, the other one she was hawking is $425K. Come on, it's going to get real ugly there no matter what the governments do.

  4. bob2356


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    4   9:26am Wed 31 Oct 2012   Share   Quote   Permalink   Like   Dislike  

    robertoaribas says

    bob2356 sayscountries that have broken up in europ

    When Catalon secedes and creates their own currency I'm going to take advantage of the opportunity to arbitrage a new currency to buy a house in Girona right on the bay of roses.

    Catalan is never leaving... Basque maybe , but Cacountries that have broken up in europtalan's for independence? maybe 1%....

    Pro independence parties are very likely to win this months election so it's a little bit more than 1%. Catalan is where a lot of the money is in Spain and there is a lot of resentment toward subsidizing poorer area's. Catalan may never go through with it, but they may once Spain is out of the EU depending on how the economics work out.

    The present borders in Europe aren't all that old and many are very artificial. When the EU collapses there are several area's that might take the opportunity to dump poorer parts of contrived sovereign states. It's already happened, Yugoslavia and Czechoslovakia were as much a fiscal breakup as an ethnic one.

  5. FortWayne


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    5   9:55am Wed 31 Oct 2012   Share   Quote   Permalink   Like   Dislike  

    They won't secede. Just like TX won't leave US.

    No one wants to lose the currency war.

  6. ja


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    6   10:12am Wed 31 Oct 2012   Share   Quote   Permalink   Like (1)   Dislike  

    (As one of the few Catalans are in this forum)

    But 1.5 million (out of 7.5 millions) walked in the streets of Barcelona asking for it last Sept 11th. The sentiment has never been so high, even for people who never wanted it.

    People is angry and blames Spain for the crisis an unemployment. You can manipulate numbers as much as you want, but the reality is that they feel that Spain is taking too much money in taxes. Without Spain, Catalonia would have a higher PIB per capita than Germany, for instance.

    Everything will depend on how politics play. Elections were anticipated 2 years (referendums for independence are not legal). A majority is expected to vote for parties in the independence side.

  7. ja


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    7   10:17am Wed 31 Oct 2012   Share   Quote   Permalink   Like   Dislike  

    No blame the prices on the high demand. It's just the story of credits going cheaper than it should have been for entering the Euro. Today, almost nobody buys housing. There are 2 markets:

    - Hosing owned by banks. Expensive, but hey, they finance you!
    - Housing by particulars. Much cheaper, but almost nobody has credit. If you have cash you may be lucky.

    But it seems there is still room for prices to go down. Look at this index (asking price):

    http://www.fotocasa.es/indice-inmobiliario__fotocasa.aspx

  8. bob2356


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    8   10:59am Wed 31 Oct 2012   Share   Quote   Permalink   Like   Dislike  

    ja says

    (As one of the few Catalans are in this forum

    Where are you in Catalan? I've traveled there several times, it's really a great place.

  9. ja


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    9   11:08am Wed 31 Oct 2012   Share   Quote   Permalink   Like   Dislike  

    Catalan is the language. Catalonia is the country (or the region ;-) )

    I'm from Eastern Valley (Valles Oriental).

  10. bob2356


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    10   11:17am Wed 31 Oct 2012   Share   Quote   Permalink   Like   Dislike  

    ja says

    Catalan is the language. Catalonia is the country (or the region ;-) )

    I'm from Eastern Valley (Valles Oriental).

    Most Americans just use Catalan for both out of sheer laziness including me even though I know better. My apologies. I never made it over to that area, maybe next time. I find it hard to break away from the coast.

  11. C Boy


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    11   6:23am Thu 1 Nov 2012   Share   Quote   Permalink   Like   Dislike  

    Europeans have long memories. The bring up shit that happened 800 years ago.

    If a tiny country like Belgium can't even live together in peace and harmony, there is no way larger countries will be able to.

    I think Europe will devolve into collections of small villages that hate thier neighbors.

  12. FortWayne


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    12   10:21am Thu 1 Nov 2012   Share   Quote   Permalink   Like   Dislike  

    robertoaribas says

    I stand corrected on the Catalan Independence issue. I lived in Barcelona as a child, and it was illegal to even speak Catalan on the streets... But still, I didn't know anyone who wanted independence back then...

    However, browsing online, it seems independence has gone from polling at about 20% to 48% recently...

    So, maybe the momentum of public opinion is swinging that way. However, Catalunia is asking Spain for several billion dollars right now to balance their regional budget, I'm not sure how well that would go if they were autonomous!

    It's just human nature. When times are tough, everyone wants to break away and divide the leftovers, take whatever they can, then to go their own way. It'll go away once economy recovers.

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