First we think you should know the value of properties generally went down around 30% over the last 4 years.
Of course an new and an older property on the beach with panoramic views, direct access to the beach, in perfect condition and near to all amenities lose much less and sometimes even nothing than an old property like an apartment with 2 bedrooms and only one bathroom.
LET’S ILLUSTRATE WITH AN EXAMPLE:
If somebody buy an apartment some 4 years ago for let’s say 200.000€ we can reasonable say today that his apartment have a market value of 140.000€
Suppose he buy this apartment with a 110% mortgage (including the almost around 10€ charges). So the total mortgage will be 220.000.
Unfortunately he has problems paying the mortgage and the story ends in a bank repossession!
He still owns the bank 200.000 and the bank will try to sell his property at 200.000 to recuperate his money under bank repossession. IN OUR OPINION THIS IS REALY NOT AN INTERESTED BANK REPOSSESSION AND NEITHER A BARGAIN.
Let’s go on with the same example but the buyer paid 4 years ago the same apartment in cash without mortgage. For personal reasons he want to sell .He know the value of his apartment is now 140.000 and he wants also quick money ,so he agree to sell his apartment for 110/120.000.
THAT IS WHAT WE MAX ESTATES CALL A BARGAIN AND IN OUR OPINION MUCH MORE INTERESTED THAN THE BEFORE DESCRIBED BANK REPOSSESSION.
If you go to a search engine and search for a bank repossession here in Spain on the Costa del Sol you will find plenty of agencies and companies that it will makes you dizzy. WE RECOMMEND TO BE VERY CAREFUL.
As almost all agencies we have indeed also bank repossessions and EVEN sometimes really bargains.
But we want to be honest and clear about that. We make before that a hard selection before we will pretend that the property is an interested bank repossession or bargain.
Often this properties don’t have time to be put in our database because they are sold in one week or less. As recognised and experienced agency we have a list of client waiting and ready to buy at any moment this kind of properties.
So to find the bank repossession or bargain of the year is not so easy, even in this hard times!!!!
It’s more a question of patience, a little lucky AND OF COURSE TO BE AT THE RIGHT MOMENT IN THE RIGHT AGENCY.