Housing bubble burst officially
Feb 19, 2009
The property sector as a whole had a fall which occurred once every several years, which usually herald the beginning of a great movement. It was not a simple correction. Nor do I believe that the trigger was the initial fall Astroc as said in many places. Astroc is a company that does not follow any analyst who does not have a clear and understandable, not distributed dividends and deemed highly overrated (at 75 euros was a PER2006 nearly 100 times) by the vast majority of stock investors. Therefore, if the majority of investors could expect that at some point Astroc suffered a sharp correction does not seem logical to think that this correction has caught them by surprise and reacted with panic selling shares in other companies that do have a clear, shared dividends and not as absurdly overvalued as Astroc.
I think the real trigger for the correction was the TVE of the 100 questions to Rajoy, which says quite clearly on several occasions that it would open up the floor when the Government reached. Because, for me, the real estate bubble only started in the late 90's, but the day someone invented one of the biggest scams of mankind, the urban reclassified. Not that the system fosters corruption reclassified, that is designed specifically to enrich themselves through corruption.
The land market in Spain (and in most countries) does not meet the laws of supply and demand (such as markets for apples, shirts, cars, computers, shoes, etc.). But the level of corruption and totally arbitrary decisions of a small group of people who decide where to build and where not.
Currently the price of land in Spain has a very high price, but the soil is not a scarce commodity. In Spain on the ground by all parties, what remains is land that is permitted (in exchange for the bribe) to build. Currently, the soil represents about half the price of the floor, so the real liberalization of the soil would be a radical change in the valuation of property on what is known so far. The bribe is paid in the first instance the developer of the building or development, but in the end it really pays (involuntarily and unknowingly) is the purchaser of the floor. To this we have to add the fact that permits are usually at the rate of sales of apartments already completed, so there is no real competition between promoters and avoid the falling prices of the flats (and bribes).
A few decades ago it was very difficult to buy a car in Spain for various reasons (SEAT was a corporation with a very inefficient production that did not give enough for the demand to import a car from abroad had to apply for permission to take a long time in granted, etc.).. As a result the price of the car (taking into account inflation) was much higher than today, people who had resigned to take the car by bureaucratic problems, the choice was ridiculous compared to today, and so on. Even people who had requested the purchase of a car and when the last time, was approaching the date that you were asked to give the car that right resold at a higher price to someone who had rushed to get a car and got a benefit (legitimate, of course) in return. This situation is unthinkable today ... if we think about cars, but it is very similar to buying an apartment off plan and sell it to complete the construction thereof. That situation was "normal" until he disappeared all those restrictions, and thus the price of the car (taking into account inflation) fell dramatically. The current housing market is very similar to the one-car market today looks more like a bad dream than a reality that many people lived that every day we crossed the street.
In many places I have read that the drop in the stock market in real estate does not affect the property, but I think the reality is that more informed investors have begun to emerge strongly in the housing market. If you have started to sell shares quoted on the stock market is because they are infinitely more liquid real estate. The illiquidity of real estate is tremendous, and when the fall is generally known can be extremely difficult to sell property, even bajándoles price.
But I think a price drop siginificativa buildings would be good for the economy generally and for most of the population in the long term, but short stress and dislocation may occur if the drop is very rapid. The most affected would be those that have investments in property, but would benefit the holders of residence, business, rehabilitation of buildings, etc..
Currently the price of real estate represents a brake on the economy or even worse (by corruption, lack of transparency, etc.). The taxes.
Malaya in the operation of the property was valued at 2400 Rock famososo million (400,000 million plague). That money was paid promoters, but it really came out unknowingly from the pockets of all those who bought apartments, buildings and villas in Marbella during those years. Which means that despite the image of solidity that has the real estate investment, a very important part of the price paid for the property is not backed by something tangible and real as the sun or the building itself, but is smoke (bribes) that any day can disappear forever.
I think the real trigger for the correction was the TVE of the 100 questions to Rajoy, which says quite clearly on several occasions that it would open up the floor when the Government reached. Because, for me, the real estate bubble only started in the late 90's, but the day someone invented one of the biggest scams of mankind, the urban reclassified. Not that the system fosters corruption reclassified, that is designed specifically to enrich themselves through corruption.
The land market in Spain (and in most countries) does not meet the laws of supply and demand (such as markets for apples, shirts, cars, computers, shoes, etc.). But the level of corruption and totally arbitrary decisions of a small group of people who decide where to build and where not.
Currently the price of land in Spain has a very high price, but the soil is not a scarce commodity. In Spain on the ground by all parties, what remains is land that is permitted (in exchange for the bribe) to build. Currently, the soil represents about half the price of the floor, so the real liberalization of the soil would be a radical change in the valuation of property on what is known so far. The bribe is paid in the first instance the developer of the building or development, but in the end it really pays (involuntarily and unknowingly) is the purchaser of the floor. To this we have to add the fact that permits are usually at the rate of sales of apartments already completed, so there is no real competition between promoters and avoid the falling prices of the flats (and bribes).
A few decades ago it was very difficult to buy a car in Spain for various reasons (SEAT was a corporation with a very inefficient production that did not give enough for the demand to import a car from abroad had to apply for permission to take a long time in granted, etc.).. As a result the price of the car (taking into account inflation) was much higher than today, people who had resigned to take the car by bureaucratic problems, the choice was ridiculous compared to today, and so on. Even people who had requested the purchase of a car and when the last time, was approaching the date that you were asked to give the car that right resold at a higher price to someone who had rushed to get a car and got a benefit (legitimate, of course) in return. This situation is unthinkable today ... if we think about cars, but it is very similar to buying an apartment off plan and sell it to complete the construction thereof. That situation was "normal" until he disappeared all those restrictions, and thus the price of the car (taking into account inflation) fell dramatically. The current housing market is very similar to the one-car market today looks more like a bad dream than a reality that many people lived that every day we crossed the street.
In many places I have read that the drop in the stock market in real estate does not affect the property, but I think the reality is that more informed investors have begun to emerge strongly in the housing market. If you have started to sell shares quoted on the stock market is because they are infinitely more liquid real estate. The illiquidity of real estate is tremendous, and when the fall is generally known can be extremely difficult to sell property, even bajándoles price.
But I think a price drop siginificativa buildings would be good for the economy generally and for most of the population in the long term, but short stress and dislocation may occur if the drop is very rapid. The most affected would be those that have investments in property, but would benefit the holders of residence, business, rehabilitation of buildings, etc..
Currently the price of real estate represents a brake on the economy or even worse (by corruption, lack of transparency, etc.). The taxes.
Malaya in the operation of the property was valued at 2400 Rock famososo million (400,000 million plague). That money was paid promoters, but it really came out unknowingly from the pockets of all those who bought apartments, buildings and villas in Marbella during those years. Which means that despite the image of solidity that has the real estate investment, a very important part of the price paid for the property is not backed by something tangible and real as the sun or the building itself, but is smoke (bribes) that any day can disappear forever.
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