Will another real estate agency that falls down, be the last one?
28.11.2008
Habitat the Catalan one is the umpteenth big real estate agency that enters voluntary creditors contest. After much to annoy the partridge and several debt refinancings for the way the imperious law of the market also has finished with this real estate agency.
This morning it has presented in the courts of the Mercantile of Barcelona a request of voluntary contest of creditors leaving behind 2.300 millions of Euros of debit behind if.
The Habitat nightmare began only two years ago when to the heat of an expansive market that seemed not to have the company thin he decided to buy the real estate branch of Railroad, one of the principal shareholders of the real estate agency. To realize this acquisition the company did not come to an enlargement but I request a loan syndicated by approximately 1.600 million Euros. On an absolutely idle market as this one it makes impossible to him that it could face the same one.
Although it could look like a lie many people will be the caught ones in this history and names celebrate. As shareholders not only it appears the constructor of the family Of The Pine also there are names like Isak Andic, Dolores Ortega, José Antonio Castro, Emilio Cuatrecasas the family Rodés.
But also the banks will suffer the consequences of his excesses, between many others the most affected are The Caixa (232 millions), Box Madrid (220 millions), Banco Santander (218 millions), BBVA (200 millions) and Banco Popular (160 millions).
Regrettably not only these personages, who do not make us sad will turn out to be affected but clients, hard-working and small deserving.
You mortgage it they get cheaper for the first time in three years
27.11.2008
It seems that these Christmases come with a very special gift for all those that we have a mortgage. After three years of continued increases of the quota, the change of cycle provoked by the economic crisis seems that it is going to provide a mitigation to the Spanish families.
To today the Euribor has touched the psychological barrier of 4 % and it is foreseen that the month finishes below this one. The medium month's characteristic of November, which will serve to calculate the quotas in the December review, places below 4,4 % what represents a reduction of 0,2 % with regard to the valuation of 4,60 %-year ago-old. This dynamics is going to provoke the first reduction from September, 2005.
The change of situation will suppose a monthly saving of approximately 21 euros in the average quota and of 247 euros per year. The average mortgage quota rondrá then 792 euros.
Them more than foreseeable descents in the interest rates for next months and the relaxation on the interbank market they make to think about future descents of the index. If this cumplie, as we wait, most of the families will see a small light inside this adverse conjuncture and they will be able to come in order month without the belt of the mortgage pressing them so much.
Most of the analysts coincide that there is opened a new stage in which the debt of the families will turn out to be greatly limited and they hope that this should revive the consumption.
Real estate crack, 30 % less of sold houses
25.11.2008
The disaster of the Spanish real estate market seems to have no end. It was raised very much and now it will have to go down so much or more than it was raised.
During the third trimester of this year 130.884 housings sold in Spain with an interannual descent of 30 %. With regard to the previous trimester the descent is 8,6 %.
For type of housings, 54,9 % was a new work coming to 71.896 while the secondhand housing added 58.988 45,1 %. Only 5 % of the real estate sold in the period was housings of official protection, what gives samples of which hardly the revival of the market will be led by this type of housing.
For autonomous regions they were those of the Coast Mediterranean and focused on the second residence the most affected: Catalonia to the head (-42,6 %), followed by Balearics (-39,4 %) and Valencian Community (-29,8 %) [percentages in interannual valuations]. Also there turned out to be hard affected other communities like the Community of Madrid (-27,2 %), the Basque Country (-27,1 %), Aragon (-26,6 %) and Canaries (-25,6 %).
The savings banks keep on dominating the market but they lower lightly his quota in favor of the banks and credit cooperatives. The average amount of the new mortgages lowered 2,4 % again up to being located in 140.193 Euros.
The quota medium month's characteristic also diminishes and it is located in 834,33 Euros. Finally, it is necessary to emphasize that the period of average amortization happens of 26 years and 11 months to 26 years and 3 months.
What yes we seem to realize well the Spanish that we dare to buy a housing, already be for will or out of necessity, the fact is that we choose a variable type. You mortgage it of these characteristics those of fixed type suppose 98 % of the entire addend scarcely 2 %.
Euribor, in free fall and without touching fund
24.11.2008
37 are already the consecutive days that the Euribor takes falling down non-stop, which places the valuation in 4,077 %. A this fact that was not remembered from February, 2007.
The principal reason of this one is still lowered is the application of the measured anticrises adopted as the governments of the European Union, although the most direct motive owes to the reduction of the interest rates of the money that there gives the European Central Bank (BCE) that has come to 3,25 %.
It seems, then, that the interbank market is begun calming and the confidence, appears again on the market although it is in small doses. As sample of it is necessary to emphasize that the differential between official types and Euribor has diminished greatly until 0,83 % marked the current one, still far from the historical average of 0,4 % but much more normal that the one that we had does many little, with 1,25 %.
The Euribor not only continues this tendency for the descents produced till now in the official interest rate but also for the expectations that exist of that it keeps on falling down. Most likely in the meeting of December 4, the BCE will cut away in other 0,5 %, leaving it in 2,75 %.
This information is a big mitigation for the mortgaged families that, in accordance with these expectations, they will see as they lower his monthly quotas. The November average is located in 4,43 % for lack of still 4 meetings, what makes foresee that it falls down up to 4,40 %. Since the average Euríbor of November of last year was of 4,60 % this a saving will suppose of apróximadamente approximately 20 Euros in the quota for those that have review this month.
Most of analysts place to the reference index below 4 % at the end of year, although personally I am more optimistic and venture that it might be below 3,25 %. This will suppose a strong stimulus for the consumers and also for the companies since both will see his charges relieved.
The Community of Madrid will apply fiscal measurements to compensate the increase of the mortgages
22.11.2008
“Less taxes, more well-being”. This was the principal slogan of the electoral campaign of Hope Aguirre in 2007. Although in times of crisis as that we are the arks of the Community of Madrid are already in red numbers, therefore the fiscal deductions will limit themselves to the educational ambience and of housing.
The Council of Government approved the draft of Law of Fiscal and Administrative Measurements of the Budgets of 2009. These measurements will benefit more than 750.000 persons according to Commission calculations. But the government of Hope Aguirre guarantees that these measurements do not aggravate moreover his red numbers, since they will only begin being taken into account from 2011. This is because until this year it will not be when the State reverberates the quantities that it collected in the autonomic stretch of the IRPF.
The measurements that the citizens of Madrid it will begin noticing from next year are based on deductions in the IRPF by rehabilitation or acquisition of housing that allow to compensate the rise of the interest rates. The calculation will be fixed in the difference between the average types of the year 2007 and the average types of the year 2008. A maximum ceiling joins to the base of calculation of 36.200 € for joint declarations and 25.600 € in case it is individual.
Quite you are measured they are, in words of the adviser Antonio Beteta, “a help to support the load for the increase of the interest rates, due to the progressive climb of the Euribor”. The new fiscal measurements will be applied to the declaration of 2009 with the information of this year, although the Commission does not discard to extend the measurements next years if the types rises continue.
Arab and Chinese they go for the Spanish soil
21.11.2008
Who would say that some day we would write a holder like that! Since the true thing is that the moment has come and is not a science fiction. The insult Martinsa-Fadesa has admitted that he is negotiating with funds of Dubai and China to sell to them soil.
The news might make us believe that these come to save the broken plates of the real estate agency, but the truth is that these funds offer for these areas a value lower than the debt that relapses on them. This situation provokes that the real estate agency has to ask for permission to the deserving banks to realize the sale, which not long ago probable that it takes place since the banks would prefer to remain with the assets to assume a loss in his balances.
The case is not new. Already approximately it has been one year since the same situation happened in the Colonial real estate agency and of that time the banks preferred to remain with the company and his assets before selling it in losses. Analyzing one and another case, we see a quite big difference between two real estate agencies since on the one hand Colonial is a patrimonialista where most of his income come from the revenues of his real estate of the first level in the principal cities of Spain as well as in Paris. On the other hand the principal assets of Martinsa-Fadesa are a soil without constructing and without income appellants. Perhaps this does that the banks take a different decision, but he will only say the time to us.
The situation of the real estate agency is more and more serious because it does not have scarcely sales and all his promotions are stopped. At the beginning of month Martinsa-Fadesa offered to the banks the payment of accounts with a discount of 50 % in exchange for the fact that it was they who were the first ones in charging.
The availability increases on the Spanish office market
21.11.2008
The last report regarding the third trimester of this year published by the branch of BNP Paribas Real you Be, AtisReal, sample that the global deceleration is beginning to be evident on the real estate office market.
Anyhow the change is still small owed, between other things, to which many works have been paralyzed or his opening has been postponed for the first trimester of next year.
In Barcelona the hiring in what we go of year reaches 255.000 m2 with an increase of 1,4 %. The availability has increased lightly, topcoat in the center, and multitude of paralyzed projects exists or late. Anyhow the revenues levels are similar to those of other years and strong oscillations are not foreseen.
As for Madrid, the hiring promotes 410.000 m2, a level similar to that of last years, but the free offer has increased greatly coming to 7,9 % of availability. The revenues in the capital are supported stable with a light tone the casualty that might increase if the crisis gets longer.
In Europe sew it són greatly more serious, especially in the United Kingdom. The recession is causing depreciation in the revenues and important reductions in the hiring. In this third trimester it seems that the descent is going to slow down, but it still keeps on being bigger than the waited one by the experts and there might be accentuated if the crisis is intensified as dismissals.
The companies, before this situation, are regrouping his offices and making more efficient his work as way of confronting the immediate future. For the time being no change is glimpsed in the real estate office panorama in Europe that makes think about a recovery.
1.300 persons in search of a real estate sleep
19.11.2008
In Spain an apartment does not sell not of coincidence, but then: why do 1.300 persons camped in the street wait for one week to buy one? Since the answer is very simple: because it has a price that they can pay. It seems so absurd that the real estate market is absolutely idle and that it is not not why there are neither buyers nor sellers, no. There are buyers, as this case shows it in particular and there are sellers, as it is showed by the quantity of real estate agencies that are entering voluntary creditors contest for not being able to sell his housings.
But then: what happens? Since it is simple, that the buyers cannot pay for what they ask them. It is not that they do not want, the fact is that they cannot. And the sellers? Since the sellers do not want to lower the prices. Some, the promoters, cannot because financially it can come to them to go out more profitable to declare itself in the ancient payments suspension and to give him the housings to the banks than to sell them more bargain sales.
But: for what do the banks wait? Why do not these impeded housings sell sales? Although it seems absurd it is simple: in a few cases it is something similar to that thing about the promoters and financially it is not convenient for them to admit that his assets cost much less than they have taken into account in balance. On the other hand, they remain anchored in that this is only a cycle and they can hope that it should happen and then to sell these assets for ten times more his value. The reality is that they are wrong as in so many things. If this is relating to the moment or structural, alone the time will say it. But they are losing the opportunity cost until this happens, and no businessman must do that, although it has a very solid support.
In half of all this absurd madness, a lodgers association, ”The Advanced post” led by José Moreno, known by “the good well-digger”, demonstrates to all that yes that it has gone shopping, but market at a just price and not a speculators' market. It is sure that for all these 1.300 friends this will not be a hard and bitter week, but a soft and sweet way in his life.
The rent begins to detach in Spain
19.11.2008
The financial crisis seems that it is triumphing with everything and with an unimaginable force that causes ravages in everything the economic sectors. But it seems that not only it affects in the companies but it is beginning causing the first social transformaciónes. Many people are changing his personal attitude to live more according to his real economic possibilities.
There went down already in history that one that «the apartments do not go down». And so much that go down! Not only they go down but we have realized that there are assets of given investment of high risk his bajísima liquidity. Therefore, now there has come the moment to make another myth fall down and it is the one that says «it is better to buy that to rent». Since already not. Everything depends on how it is done and at what clear price.
The housings park is going to grow in Spain 50 % during this year and the next one, providing in more than three million the housings offer. This is the first step so that the prices of the rents fit to his measured joust. It is because, before the inability to sell a housing, the owners are having to look for urgency solutions to compensate as far as possible his losses. Approximately 42 % of owners who decide to put the housing in rent is not promoters. 14 % is "caught" owners who bought his housing for investment and now they are not gone out to the product and turn out to be forced to put it in rent not to incur major losses. Other 12 % is proprietary that, axfisiados for his mortgage, decide to go away to live of rent and, in turn, rent the mortgaged housing. Anyhow this scarcely will represent 15 % of real estate market in Spain remaining very far still of 30 % that it represents in Europe. But it is clear that the things begin changing and the mentalities also.
With a clearer law and encouraging the public assistance to the rent, immigrant and young, principal groups that demand rent, they will be able to have a worthy housing and the real estate offices and the sector they will become stronger, being provided with a major professionalism that will do this stabler and less speculative market.
Another real estate agency more that it falls down: Tremón in payments suspension
18.11.2008
To come was seen and not that's why it hurts less. But the trickle of water of real estate agencies that take refuge in voluntary creditors contest, seems no to have end. The reality is that with an absolutely idle market, with indexes of unemployment in intensive increase and with the credit market in full drought, it does not seem that any minimally indebted real estate agency could resist.
Tremón has been today the protagonist, but without a doubt that it will not be the last one. After Martinsa-Fadesa and now Tremón, many are those who think that Habitat or Colonial the following ones will be in falling down. And the fact is that for a lot of efforts that do to be refinanced, agreements and the others do not manage to go out afloat because the reality is that they do not sell. We go, that do not have productive activity and this way it is impossible that they survive. The only solution that they have left is to sell and to liquidate the societies.
Very much he has written himself on what has happened with the real estate market, but the explanation is of all the known and very simple one and she answers to the name of avarice. Accompanied avarice especially a way of carrying on business new, strange and peligrosa:en this country during the last 10 years anyone could become a promoter without need to put an euro of his pocket. Earlier, traditionally the businessmen had the money or they were the people that with a big idea who was convincing others so that they were contributing the capital that was allowing them to begin a project. In any case the project began with a capital that was endorsing the company. But during these years of madness and wild abandon there is not sucedidó this way. Why? It was not necessary. The only thing that it was necessary to do to be a promoter was to look for an area, to agree a price with the seller of the soil, to go to the bank so that it was granting a credit to you, to hire some construction firm of doubtful reputation and to mount a small commercial office on foot of work. And the normal thing was to have the promotion sold on planes, even before the preparation of the area.
All this was undoubtedly a madness. Anyone cannot carry on business because it is necessary to have a few minimal knowledge and a financial support behind. Now, punctured the bubble, the problems come: ruined promoters, “those that did not do box”, banks in serious problems, families with the paralyzed house, sequestrations, unemployment, etc.
Tremón, which does not do greatly was trying to go out to bag, now it suspends payments and leaves a debt of more than 1.200 million euros to his creditors who are principally boxes and banks. Also, it is not necessary to forget the providers since many will close for the non-payments of the real estate agency and, especially, the idle ones and his families that drag after themselves and that are those who more will suffer.
Anyway, let's hope that once and for all they should decide to lower the prices of the apartments of a real form and that the financing should return so that the market could become stable.
