News: The truth about repossessed property in Spain

News: The truth about bank repossessed property in Spain 2016
Written by Inmo Investments - 11 Jul 2016

Spain's real estate market was hit particularly hard by the global financial crisis of 2008. In the years beforehand properties were being sold as quickly as they could be built, to north European property buyers keen to secure a place in the sun. When the world ran out of money Spain's property bubble burst and the housing market entered free-fall. The depression would last for a punishing 7 years, and by 2015 Spanish property prices had fallen by up to 65%.

With the global crash affecting their jobs and income at home, many foreign buyers who had financed their property in Spain could ill afford to maintain their mortgage repayments or meet the expenses required to maintain their holiday home in Spain. Millions of foreign buyers were left in a state of negative equity and, perhaps unsurprisingly, many buyers chose to simply abandon their Spanish holiday properties, with the banks repossessing the vacated stock.

The Spanish property market stopped it's decline in 2015 and has repeatedly demonstrated consistent signs of recovery, with foreign buyers returning to Spain and banks willing to offer mortgages and financial products once more. Today's Spanish property market is very different to the fragile bubble it once was. Prices are climbing, and the market has a renewed vigour and energy. But that hasn't stopped a surge of misinformation making it's way on to the internet.

In fact, buying a bank-owned property in Spain makes a great deal of sense. Priced significantly below their genuine market value, purchasing a bank-owned property at a point in time when prices and demand are rising is a shrewd move. But there are many other great reasons to consider buying a bank-owned property in Spain, other than a great price ...

Less risk of negative equity.
Buying a bank repossessed property in Spain with the market at a low price point means you will have less need to worry about negative equity. It's unlikely that the property will be worth less than you pay for it.

A diverse choice of properties.
You will find bank-owned property of all shapes and sizes in every area of the Costa Blanca. From small apartments to large villas, there is something to suit your requirements from Alicante to Pilar de la Horadada.

Fast chain-free completion.
With no chain, purchasing a Spanish bank-owned property is simple & fast, and can be completed within 28 days.

No debt with the property.
When you buy a bank repossessed property from Inmo Investments, the bank keeps any and all debt associated with the home. This includes any mortgage or other loans, in addition to community fees, taxes, or anything else that may not have been paid.

Trusted & reputable estate agents.
Only the most established and trusted estate agents are chosen to represent national Spanish banks. That's why we are proud to work with our banking partners and offer a fine portfolio of great value local properties.

Less paperwork complications.
Before a bank offers a Spanish repossessed property to market, they ensure that the essential paperwork is present and in order. Buying a bank-owned property means you will always get the documentation you need.

Favourable mortgage terms.
If you need a mortgage to buy a holiday home in Spain, you are more likely to be offered favourable lending terms if you arrange your mortgage directly with the bank selling the repossessed property.

No negotiating prices.
Spanish bank-owned property prices are fixed. You know what the final cost of your purchase will be from the very beginning, and you avoid the need to negotiate sale prices completely.

Removing unpredictable elements.
Financial institutions only have a monetary interest in the property and they are more predictable than a private seller. Repossessed property may require some work, but they make the perfect blank slate.

The ultimate motivated seller.
The banks need to sell their housing stock to mitigate their financial losses. They will be fully committed to making a sale succeed.

This article, written by local Spanish property specialist Shelley Starkey, appears in our latest issue of Costa Blanca Property for Sale, which focuses on Spanish beachside homes for less than €100,000. Available for download free of charge, and fully digitally interactive, click here to download directly to your smartphone, tablet, or laptop now. Alternatively, click here to view our current portfolio of repossessed properties.

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