{"id":32995,"date":"2018-03-30T16:14:41","date_gmt":"2018-03-30T21:14:41","guid":{"rendered":"http:\/\/olduvai.ca\/?p=32995"},"modified":"2018-03-30T16:14:52","modified_gmt":"2018-03-30T21:14:52","slug":"banks-builders-want-new-property-bubble-in-spain-government-obliges","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=32995","title":{"rendered":"Banks & Builders Want New Property Bubble In Spain, Government Obliges"},"content":{"rendered":"
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Banks & Builders Want New Property Bubble In Spain, Government Obliges<\/a><\/h3>\n<\/header>\n
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\u201cThis plan, far from solving or alleviating the problem, is likely to make it a whole lot worse.\u201d<\/strong><\/p>\n

Spain\u2019s second biggest bank, BBVA, just announced<\/a> that it\u2019s resurrecting the 100% mortgage, a high-risk loan instrument that notoriously helped fuel Spain\u2019s madcap property boom. For the first time in almost a decade, property buyers will be able to receive credit equivalent to the total value of the property they wish to purchase. As before, no down payment will be needed. But this time, interest rates will be even lower.<\/p>\n

Despite boasting the largest stock of empty housing in Europe \u2014 1.36 million units at last count<\/a>, almost a quarter of them belonging to banks and investment funds \u2014 Spain\u2019s economy is being primed for another property boom. Real estate developers and builders want it and banks need it, not only to fatten their NIRP-eroded margins but also to dispose of some of the real estate assets still lingering on their books from the last crisis.<\/p>\n

The government will do just about anything it can to help out. For the coming years, real estate developers want to build<\/a> around 120,000-150,000 new housing units. It\u2019s a mere fraction of the 700,000 new homes a year being built at the apogee of the last bubble \u2014 more than in France, Germany, Italy and the UK combined \u2014 but still a lot higher than current production levels.<\/p>\n

In 2017, a paltry 43,300 new homes were built<\/a> \u2014 little more than a third of the ambitious target real estate developers now have in their sights. There\u2019s likely to be little change in this trend in the coming years, according to forecasts by the National Institute of Statistics (INE). Between 2017 and 2021 it predicts that around 188,000 new homes will be built \u2013 an average of just 47,000 a year.<\/p>\n

…click on the above link to read the rest of the article…<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Banks & Builders Want New Property Bubble In Spain, Government Obliges \u201cThis plan, far from solving or alleviating the problem, is likely to make it a whole lot worse.\u201d Spain\u2019s second biggest bank, BBVA, just announced that it\u2019s resurrecting the 100% mortgage, a high-risk loan instrument that notoriously helped fuel Spain\u2019s madcap property boom. For […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[63,13916,19605,5660,281,19607,19606,743,4197,6118],"class_list":["post-32995","post","type-post","status-publish","format-standard","hentry","category-economics","tag-banks","tag-bbva","tag-builders","tag-don-quijones","tag-europe","tag-high-risk-loans","tag-property-bubble","tag-spain","tag-spanish-government","tag-wolf-street"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/32995","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=32995"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/32995\/revisions"}],"predecessor-version":[{"id":32996,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/32995\/revisions\/32996"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=32995"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=32995"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=32995"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}