| CONSTRUCT OR DESTROY |
X - Bags! The money in plastic bags!
That's what they wanted, and I came back looking for these insane
amounts of money (referring to money B, not audited).
C-Would you say that in front of the camera?
X-How am I going to do that, man! They'll drag me to court and that will
sink the company. But look Carlos, this goes on throughout Spain.
C-But if you, the promoters, did not pay th black money and make a
denuncia, that would stop the corruption..
X- Look, to start with, one has to be able to prove it and thats not easy. A
recording will not do, its not legal. And besides, I fight for my business,
and I regard these commissions as a percentage which has to added to
the cost of the whole project. It is down to the political and judicial system
to put a stop to such practices. Not us ...
That's what they wanted, and I came back looking for these insane
amounts of money (referring to money B, not audited).
C-Would you say that in front of the camera?
X-How am I going to do that, man! They'll drag me to court and that will
sink the company. But look Carlos, this goes on throughout Spain.
C-But if you, the promoters, did not pay th black money and make a
denuncia, that would stop the corruption..
X- Look, to start with, one has to be able to prove it and thats not easy. A
recording will not do, its not legal. And besides, I fight for my business,
and I regard these commissions as a percentage which has to added to
the cost of the whole project. It is down to the political and judicial system
to put a stop to such practices. Not us ...
Bear in mind that if I do not pay, my competitor will have the business in that municipality, and I will be out. And if I
am already inside, They will delay the granting of my building licenses, and apply the law in the most restrictive
way. All of that will seriously damage my business.
I had this conversation in 2006 with the head of an important building company (with building projects throughout
Spain) during a talk about how to proceed with the commission fees (black money) in reference to the corruption
of regional and municipal politicians. I was preparing a TV documentary - MEDITERRÁNEO SA, which I
eventually did not finish, because it no longer makes no sense, which was to denounce and warn of the
consequences of a growth model based on uncontrolled building. The market itself has led the turnaround, and
nobody doubts that we are entering a crisis of unknown scope. At present there is a grave crisis in the building
sector, Which threatens to be deep and long lasting and will possibly drag other sectors of the economy down
with it.
How many times has public opinion warned that basing the wealth only on one sector such as the construction
was "bread for today and hunger for tomorrow"?
The crisis in the real estate sector began in the USA, Extended into Europe and had most impact in those
countries most growth in that sector, like Spain, and in particular in areas where second homes had been built in
such an uncontrolled way as on the coast of Valencia. In Altea we have all the ingredients to suffer this crisis to
its full extent.
When faced with the question, what has been achieved during these years of real estate euphoria, or better yet,
what have the citizens of Altea received, we can only conclude:
1. The vandalisation much of our natural environment with no possibility of recovery.
2. Increased population, with workers from a sector that now will have real problems finding work with all the
consequences that this implies. (It's easy to deduce that this will result in increased crime rates.)
3. Municipal coffers left with huge debts.
4. Equilibrium within the municipality destroyed by the subsequent increase in new inhabitants compared to the
infrastructure deficit. (You only have to see the problems with traffic and parking)
5. Residential tourists with high purchasing power fleeing the overcrowding.
6. Many young alteanos leaving school to work in construction, and finding themselves in a no man's land, with
no studies and no work.
7. Prices of apartments and land reduced, with the consequent reduction in the value of citizen's estates
Having been indebted by investing in these types of property. And I would like to dwell on this a little more:
But have the prices of these properties really fallen?
Without a doubt. The real estate market is like any other. It is governed by the law of supply and demand. If the
demand is restricted, as is happening, there will be sellers who drop their prices to gain liquidity. I
have received reliable information from developers who have already begun to sell their properties and even the
empty building plots, at mortgage prices.
continues on next page...
am already inside, They will delay the granting of my building licenses, and apply the law in the most restrictive
way. All of that will seriously damage my business.
I had this conversation in 2006 with the head of an important building company (with building projects throughout
Spain) during a talk about how to proceed with the commission fees (black money) in reference to the corruption
of regional and municipal politicians. I was preparing a TV documentary - MEDITERRÁNEO SA, which I
eventually did not finish, because it no longer makes no sense, which was to denounce and warn of the
consequences of a growth model based on uncontrolled building. The market itself has led the turnaround, and
nobody doubts that we are entering a crisis of unknown scope. At present there is a grave crisis in the building
sector, Which threatens to be deep and long lasting and will possibly drag other sectors of the economy down
with it.
How many times has public opinion warned that basing the wealth only on one sector such as the construction
was "bread for today and hunger for tomorrow"?
The crisis in the real estate sector began in the USA, Extended into Europe and had most impact in those
countries most growth in that sector, like Spain, and in particular in areas where second homes had been built in
such an uncontrolled way as on the coast of Valencia. In Altea we have all the ingredients to suffer this crisis to
its full extent.
When faced with the question, what has been achieved during these years of real estate euphoria, or better yet,
what have the citizens of Altea received, we can only conclude:
1. The vandalisation much of our natural environment with no possibility of recovery.
2. Increased population, with workers from a sector that now will have real problems finding work with all the
consequences that this implies. (It's easy to deduce that this will result in increased crime rates.)
3. Municipal coffers left with huge debts.
4. Equilibrium within the municipality destroyed by the subsequent increase in new inhabitants compared to the
infrastructure deficit. (You only have to see the problems with traffic and parking)
5. Residential tourists with high purchasing power fleeing the overcrowding.
6. Many young alteanos leaving school to work in construction, and finding themselves in a no man's land, with
no studies and no work.
7. Prices of apartments and land reduced, with the consequent reduction in the value of citizen's estates
Having been indebted by investing in these types of property. And I would like to dwell on this a little more:
But have the prices of these properties really fallen?
Without a doubt. The real estate market is like any other. It is governed by the law of supply and demand. If the
demand is restricted, as is happening, there will be sellers who drop their prices to gain liquidity. I
have received reliable information from developers who have already begun to sell their properties and even the
empty building plots, at mortgage prices.
continues on next page...
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