Bank Repossessions in Spain and the Costa del Sol
Over the last 4 years Spanish properties have gone down in prices by about 30%. It is very important that you keep this mind, and while most of the time it would be a great opportunity to take advantage of bank repossessions in Spain; at other times, you may be sucked into bad investment choice.
There are however, several differences when it comes to locations and such across the Costa del Sol; generally a new property on the beach with perfect panoramic views, all amenities nearby will obviously lose much less. On the other hand, a much older property in the same type of location could possible lose more.
LET’S ILLUSTRATE WITH AN EXAMPLE:
Let’s say for example purposes, Mr. Smith bought an apartment 4 years ago, for around 200.000€. It would be reasonable to say that today his apartment has a market value of 140.000€. Now, let’s suppose Mr. Smith bought this apartment with a 110% mortgage, which includes all charges therein; so the total mortgage will be 220.000. Unfortunately, Mr. Smith faces financial difficutly and can no longer afford to pay his mortgage, and the story ends in bank repossession. Keep in mind that Mr. Smith still owes the bank 200.000; therefore, the bank will do its very best to recover that money, and subsequently will try to sell the property at 200.000 to recuperate its losses.
So, what does this all mean exactly? For us at Max Estates, it simply means this is NOT and shouldn’t be considered any type of bargain or deal. The trouble with bank repossession in Spain is many are under the impression they are getting the best possible deal with cheap properties or houses for sale because they are repossessed. This is a huge misconception, and we have enough of the “know how” to steer you clear of such tempting offers.
Now, let’s take a quick look at another scenario, and put in a buyer who purchased Spanish property 4 years ago. This buyer chose to pay in cash without any mortgage, and today, for personal reasons he wants to sell his Spanish property. He knows that the value of his property is now 140.000, and he wants a quick and easy sell; therefore, he agrees to sell his apartment for 110.000…Now that’s a deal!
Max Estates agents know a bargain when we see one! We understand the value of properties across the Costa del Sol, we understand what value really is and more importantly we can tell the difference between a bank repossession and a really good deal. We advise you and keep your best interests at heart. Afterall, any type of investment, especially property investments is a big step to take in order to attain financial security down the road.
It’s not hard to see just how many bank repossessions are avialble, in fact all you need do is go online and search out bank repossession here in Spain or on the Costa del Sol, and you’ll get page after page of results. Plenty of real estate agencies are just begging for your interest in bank repossessions, only to get a nice juicy commission – we however, do not. We do advice you to please be careful.
Our final note on the matter is really just some good old fashioned common sense – let’s be perfectly honest here: We at Max Estates DO LOOK for the best possible bargains the Costa del Sol has to offer. And yes, we do on occasion find them; however, the minute we put them within our database or advertise them, they are literally sold within a few days! This is the hard truth, but it needs to be told.
Often, these types of Bargain Properties don’t see the light of day because they are in fact sold so fast. We already have a list of clients who are waiting for the next bargain to pop-up! In order to find the perfect bargain or bank repossession here on the Costa del Sol, you will need some patience, a little bit of luck, and Max Estates to help guide you through it.
Before choosing your Spanish Property, choose the right agency – Max Estates in Spain!