The Spanish Property Market - Banks Still Hopelessly Out of Touch
30 Jan 2011
Supposedly in 2011 this was meant to be the year where new rules and regulations would see a huge influx of discounted properties and bank repossessions hit the Spanish property market. However the reality on the ground is somewhat completely different according to Spanish Hot Properties Managing Director Nick Stuart
“It seems that some Spanish banks are going to be taken dragging and screaming to actually sell their properties for less than the debt outstanding on them and only severe pressure from the Bank of Spain will really make these Banks do what they don’t want to do. I recently went and had a look at a few bank repossession from Cam Bank and I have to say only one was a real deal and the rest were a total waste of time. Los Arqueros Golf would be a prime example where we could help a client buy a brand new and better home for €50,000 less than the bank repossession that was on offer” explained Nick.
Some banks who have no choice but to comply with the stringent new rules are refusing to budge on the debt price to individual property buyer but are prepared to sell their debt to Investor groups but this won't necessarily help the individual property buyer according to Nick. His view is that an investment company may try and buy €100 Million worth of debt for €40 Million but that saving won´t be passed onto the clients directly as they will then hold on to the asset and look to sell for a profit.
So what advice would Nick give to buyers of properties for sale Spain at this time looking at Spanish bank repossessions. “My advice would be to look at the really good ones but not limit yourself to just bank repossessions because there is real value to be had out there is resales and more importantly key ready property with big discounts direct from the developer with up to 100% mortgages” advised Nick.
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