Key Ready New Developments versus Spanish Bank Repossessions January 2013
11 Jan 2013
The Spanish property market is coming to terms with the hike in taxes on New Build properties of an extra 6% as those buyers motivated to take advantage of the discount that finished on 31 December 2012 completed their sales and are now sitting pretty smug.
As Nick Stuart Managing Director of Spanish Hot Properties points out “a lot of people didn’t think the Spanish Government would do something so stupid and one school of thought was that the Government at the last minute would keep the previous discounts as it did at the end of 2011. We just need to learn to deal with the realities at hand”.
In 2012 the property buying costs of a key ready new property excluding mortgage costs was roughly 7% on an average 300,000 Euro purchase. In 2012 it is now 13%. In 2012 a Bank Repossession would cost around 10% in buying costs and that doesn’t really change for 2013 so from being 3% more expensive in buying costs it’s now under 3% cheaper.
So what does this mean for the buyer when choosing to buy a Bank Repossession or Key Ready development? According to Nick it’s actually a very small factor when considering the huge discounts on offer which in some cases is over 50%. This is also unlikely to impact on your decision unless you are comparing identical properties in the same development in which case you would be likely to plump for the Bank Repossession. The most important thing is to find the best deal for the property you want to buy regardless of if it’s a Bank Repossession or New Development. Also if you one of those who didn’t buy last year when you had the chance there is no point living in the past you just have to deal with the present that we have today.
For those Spanish property buyers looking for advice on Spanish bank repossessions or key ready New Developments you can contact Spanish Hot Properties for further assistance.
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