In some parts of Spain, some properties are becoming so heavily discounted that hoards and hoards of people are rushing to buy their first house or holiday home. Banks are even getting rid of some properties worth billions for much less than they’re worth. This is mainly troubled properties that were repossessed or got into bad debt. There’s even talk of 100% mortgages over 40 years, which means people from all over are rushing to buy homes in Spain.
There are absolutely thousands of properties in Spain that will suit people searching for holiday homes perfectly. You just need to be able to deal with the Spanish banks effectively! Today with all of their repossessions to sell, Spanish banks are more than likely Spain’s biggest estate agents. The only problem with that is that they aren’t the best at marketing properties – particularly for foreigners who aren’t fluent in Spanish! Plus many banks are point blank refusing to speak to individuals in case they get ripped off – they’re very choosy about who they deal with and sell property to. You will be in a better position to negotiate if you learned some basic Spanish.
So just how does your average buyer start out getting a bargain price property in Spain?
There are plenty of agents out there offering to be the mediator for you. This is sparing you the hassle of attempting to deal with the banks yourself, however you must beware of the con artists who know nothing of the industry and are simply trying to make a quick buck. You can tell those sorts usually from their websites as it’s obvious how long they’ve spent building their brand!
Remember to choose your property very carefully – you don’t want to end up with somewhere half built or in a less than desirable area! There are some great properties though, for example in El Ejido on the Almeria Coast. Here, it’s ripe with two bedroom flats at a new Portofino harbour front development (this is a bank repossession). You should be able to purchase one of these flats for just £120,000 with 100% mortgages available. That’s a real bargain property and the town is stunning.
You can even purchase a repossessed villa, 4 bedrooms, private pools – for as little as £162,000! These villas were valued at £320,000, in places like Mojacar in Almeria.
Connells estate agents is an agent that offers British buyers the opportunity to access discounted properties owned by the Spanish banks. Here you’ll have the choice of over 5,500 repossessed properties. Last year Connells says they had over 7000 enquiries from British, Indian and American home buyers. The properties were discounted at an average of 50% and with only a 3 month wait to complete.
To really find the bargain Spanish property of your dreams, make sure you speak to a variety of agents who deal in repossessions. You’ll easily get an idea of who knows what and whether you should trust them. Also make sure you get a lawyer to investigate any properties you are interested in to see if it has any debts that could get carried on to you. This shouldn’t happen usually with Spanish banks but you can never be too careful!