Words: Ashley Rigg
Published: 1st November 2010
*Bank of Spain calls for real estate transparency
In a new report, The Bank of Spain (BOS) has called for the Spanish banking industry to be more transparent about its exposure to dodgy property loans and about its plans to manage the crisis.
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Source: Global edge
User Comments
The BoS's stats problem is that they do NOT use asking prices. Instead they use recorded sale prices. In the past they have been so reduced due to cash payments that they are meaningless as a base to work from. Money laundering regs have tightened things up greatly, though there is often still an element of cash (allegedly!).. Thus any market reductionsare squewed by the changes in cash payments appearing to make prices rise.
Campbell,
Survey Spain
A step in the right direction, however the comment by the BOS seems overly optimistic, alluding to the fact that "the lack of information can give the impression that the situation is worse than it really is".
The domestic property market also lacks transparency, the right cause of action would be to force the Ministry of Housing to publish actual transaction values, rather than the pure fiction that currently emerges.
Mark,
First Property Choice