Opportunity to buy in Spain: Bank repossessions
The negative effects of the financial crisis on Spanish society are well known, with the high number of bank
repossessions being the most widely publicised side-effect. Whilst this has created a social problem, it has also given way to a huge opportunity for property buyers and investors in Spain thanks to the incredibly low prices these repossessed properties are being offered at, with an estimated increase of 15% in property sales for this year.
Spanish banks have become inundated with repossessed properties in the last few years and their urgency to offload them so as not to incur in further losses puts the buyers of these types of properties in an extremely powerful negotiating position.
Furthermore, accepting one of the bank’s products (e.g. deposit account, home insurance, life insurance, credit card, etc.), some of which the buyer is already considering anyway, can bring down the purchase price even further.
Although repossessed properties in Spain are particularly appealing to cash
buyers because of their low prices, they
can also be very interesting for those considering a financed purchase, as some banks are currently offering 100% mortgages for these properties.
This change to the Spanish real estate market makes it the best time to buy in Spain in recent years. However, locating these properties and negotiating with the banks can prove complex and challenging, and specific legal checks are required. It is therefore important that potential buyers seek proper legal advice before engaging in the purchase of repossessed, or any other kind of properties in Spain.
Gabriella Mary Trussler Rowland
4408 Ilustre Colegio de Abogados de Almería