Monday, 1 September 2008
Spanish Housing Disaster: "my gosh!"
"Spanish car sales fell 41.3 percent in August from the same month a year earlier, marking the fourth straight month of decline and the biggest drop this year amid a severe economic slowdown, data showed on Monday"
You know what? the housing price there are gonna fall by over 80% if the ECB doesn't intervene and quickly... On one hand you have the english "expat" or other speculators that are fleeing the market and on the other about 80% of the population owning a house, with 97% of people being on adjustable rate mortgage (similar as in Finland though), this housing seem to have no floor to fall to.
If you had plan to retire in costa del sol, wait another 2-4 years and buy back property for about 80% - 90% discount.
Indeed Greed, is severely punished over there.
Do I feel investing in Finland while massive opportunities are being created abroad in the next 5 years. My answer is straight: NO. Nor, I'm going to work my whole life for a Nordic bank that have behaved irresponsably (reckless lending and speculating through its real estate branches) . Neither would i participate into bailing out construction builders such as YIT that have been selling "knigthmare trap" to young household or first time buyers.