Spanish Mortgage Debt Up 25% In One Year
In Spain, the RE boom has pushed the country to the brink. "Household debt in Spain surpassed disposable income for the first time last year, posing risks for the stability of the financial system, the Bank of Spain said Monday."
"The increase in indebtedness of Spanish households is largely the result of much bigger mortgages to acquire the family home due to an ongoing property boom in which house prices have risen about 150 percent since 1997."
"According to figures from the Spanish Mortgage Association (AHE), total outstanding mortgage loans at the end of March stood at a new record of €615.132 billion, a rise of 24.5 percent from a year earlier."
5 Comments:
Of course the Britons and their "jet to let" is helping to export the bubble. Take out the equity from GBP 300,000 ex-council house in Bolton and buy some property in Spain.
I was watching a business show on a plane yesterday where they used this jet-to-let term and the focus was on Hungary. Prime location condos were going for EUR 200,000 in Budapest, but I am sure that is ridiculous compared to a few years ago. And I am sure that it is a price class that is way out of reach for most locals so when the foreign investor inflow dries up when the worldwide housing bubble pops..... watch out. I don't care if Hungary is in the EU. (That was of course the argument for endless insane appreciation.)
The show featured some service called Odessa (I think) that helps Britons to buy investment properties in the new Europe. This guy was seriously taking about how Bulgaria is going to be the hot new market....
Same game, different country.
Always the same morons that are doind the same as in the USA. United States presently makes me puke. You always to have to export your damn germs across the world. I am not suprised that the Spanish jerks have also caught your micobes. Monkey see monkey do. What a bunch of godamn morons.
Stupid as in Spanish. Spanish French, German, British, Chineese. All are fundementally stupid as you Americans. Which proves that stupidity has no race, no country and no race, and no colour. Must be what they call Globalization.
Which proves that Europeans as Americans don't have any brains.
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