They demand banks not to lower house pricing, instead, lower fiscal pression on foreign house buyers
President of Spanish Real Estate Agents and Constructors Association (APCE), José Manuel Galindo, demands not to lower construction assets to "excessively low levels" due to consequences on Real Estate. Instead, he asks of banks to act according to interest rate or installment plans.
Looking abroad would only benefit Spain according to Mr. Galindo. For that reason, he propose "tax incentives not only to resisdents but also foreigners".
Turns out there are more factors than house pricing to persuade house hunters. Last Tuesday we read on El Mundo newspaper how mortgages would go down even more during 2012.
"No matter how much we lower prices when there's no financing available to buyers".- added Mr. Galindo.
Why this announcement at this moment in time? It assesses the Government's reform on our financial system. Unfortunately, this content is only available in Spanish, but you can access full content on this reform by clicking here.
Banks will be asked higher requirements on any transaction made. Any bank pretending to move real estate assets will be required to provide 35 per cent of the total amount (it was 25 per cent before). Ten per cent cheaper houses.
However, even if it sounds like good news, "a drop on house pricing won't have any impact provided it does not go hand in hand with good financing conditions".- Tinsa Consultancy, one of the most important Real Estate Valuation companies in Spain, argues.