Tag Archives: property bubble

Spain to offer residency to anyone who can buy as house for more than 160,000€

It says it all in the title. Mariano Rajoy is considering offer non-resident property buyers the chance to have citizenship if they can afford the purchase of a 130,000€ property.

Spain has about 700,000 unsold properties on the market and this appears to be a move to  help shift some of the housing stock and to get some high worth individuals onto the books and into Spain.  its also a move to try and lower the “bad debt” current considered to be at about 10% of total loans.

This a isn’t a first, in Ireland you can get residency with a 400,000€ purchase and in Portugal, 500,000€.

 

Property Works Mallorca 2012

The Bad Bank – coming to Spain soon.

The Spanish government is creating a “Bad Bank”, or “Banco Malo”, in which to put all the toxic property assets.

The idea is to progress from the current building crisis by drawing a line under the current woes in the construction sector.

Basically, the Government of Spain issues debt and buys from Spanish banks all their bad investments, which are accumulated in a “bad bank”.

Presumably, the acquisition takes place at a significant discount relative to the actual value, so that in the long-term, taxpayers could even win when the assets are re-sold.

At Property Works, we beleive that this measure, although not without its risks, could be of some help to help the Spanish economy overcome the deflation of its recent property bubble.

Time will tell…