Over 3 million empty Spanish Proerties.

[ashworth]

http://www.bjp-online.com/2018/03/dji-drone-photography-award-sand-castles-part-ii/

[spitfire58]

That is really shocking, and criminal. So many properties left to fall into rack & ruin and yet so many families not in decent housing. The institutions that now hold these properties were in the most part bailed out by the tax payers in these countries, ergo, the tax payers (the countries) own these, either directly or indirectly. They should be utilised for the good of the population not allowed to waste away !! IMHO

[dagwood]

On a similar but smaller scale there were/ Are a lot of properties left unfinished in Ireland and we have a serious housing problem. Apparently the workmanship on a lot of these estates was not up to standard and they need to be knocked.  Even if it were up to standard the banks have sold them off to vulture funds. Apparently these vulture funds just leave them sit until they get a profitable offer which would need to come from a cash buyer as the banks are unwilling to lend on these same “distressed properties “ again.

[Lexeus]

The way I see it is the Spanish banks have all this free money to play with, and if they sell the housing stock now they may pay back some of the money, but where is the profit in that? So they are holding all these houses and withit keeping hold of all this free loans from the government. One day they will sell when another boom comes, and they will issue some new Tarjetas Black to celebrate!!

[calculator]

laws in spain are different, you cant just buy a property that went bancrupt in the building process for whats is agreed is fair, you also have to clear the outstanding debt, thats why there are loads of half build evacuated projects in the canary islands, if you want to buy it you also have to clear the last guys debts, this only becomes feasable when the land prices rise to a point where you can clear the outstanding, buy the project (or just the land to knock down and start again) at a price that is near the actual land value.

its silly to think some people would rather live with eyesores next door to them than get the government to fix this

That's not the way it works by any stretch of the imagination. Go back to school and educate yourself!

Promotors use bank money to develope, making it easy to walk away, change name and start again.

Legally, the bank has to auction the property(s) at 60% of the "valor tasacion" (used to be 50% few years ago) and pursue the debt for the remaining amount, which is usually written off.

Same applies to individuals who default on mortgage, etc.

Hence the reason that u can't negotiate, as its not within the legal remit of the law.

In any case, the original "story" is just a pile of cr#p. The property market in fuerteventura is booming and has been for at least 5 years. If u haven't bought already, you've missed the boat. People shouldn't obsess about foreigners buying/selling. The important market is the local market - buying/selling amongst Canarians/Spaniards. As I've said before, they have loads of dosh.

[spitfire58]

Hi calculator,
I agree that the market has improved. We bought about a year and a half ago for just under 50k (from the bank) & one of the same properties has recently changes hands for in the region of 100k so yes, sale market is defo better BUT there are still hundreds if not thousands of unfinished properties that the banks are sitting on as paper assets rather than sell at a realistic price. If left long enough they will just need to be knocked !! Where is the banks “paper asset” then !! I just don`t see the logic in it. IMHO

[Johnrgby2]

Hi calculator,
I agree that the market has improved. We bought about a year and a half ago for just under 50k (from the bank) & one of the same properties has recently changes hands for in the region of 100k so yes, sale market is defo better BUT there are still hundreds if not thousands of unfinished properties that the banks are sitting on as paper assets rather than sell at a realistic price. If left long enough they will just need to be knocked !! Where is the banks “paper asset” then !! I just don`t see the logic in it. IMHO

Ron did you just use the word LOGIC?? while discussing This Island

[PHo]

It's an international accounting problem. If you own an asset that is on your books for 100k, but would only raise 60k if you sold it, then in the year you sell it you have to post a loss of £40k, and the shareholders will be upset. So it is easier to hold on to it

[perrypower1]

It is also a fallout of very low interest rates.

Banks have to report unproductive loans.  Unproductive is when they are receiving no interest payments (different from unsatisfactory loans).  If interest rates are low enough ( for example zero% as in the case of euro libor) then the loan might be unsatisfactory but it is not unproductive and there is no need for the lender to 'administer' it.  So as pointed out there is no problem just leaving it on its balance sheet at the original valuation.

[ashworth]

Hi calculator,
I agree that the market has improved. We bought about a year and a half ago for just under 50k (from the bank) & one of the same properties has recently changes hands for in the region of 100k so yes, sale market is defo better BUT there are still hundreds if not thousands of unfinished properties that the banks are sitting on as paper assets rather than sell at a realistic price. If left long enough they will just need to be knocked !! Where is the banks “paper asset” then !! I just don`t see the logic in it. IMHO

Still plenty of cheap properties around. Anjoca are starting there next development on the golf course with prices lower than they were on their developments over 12 years ago.

[spitfire58]

Hi calculator,
I agree that the market has improved. We bought about a year and a half ago for just under 50k (from the bank) & one of the same properties has recently changes hands for in the region of 100k so yes, sale market is defo better BUT there are still hundreds if not thousands of unfinished properties that the banks are sitting on as paper assets rather than sell at a realistic price. If left long enough they will just need to be knocked !! Where is the banks “paper asset” then !! I just don`t see the logic in it. IMHO

Ron did you just use the word LOGIC?? while discussing This Island

Sorry JR2, forgot I was talking about Fuerte there & Spanish banks. Thought I was somewhere else 🤣😂🤣😂🤣😂