Spanish bargains you can bank on!
It's no secret that Spains property market has been flooded with repossessed and distressedproperties,which means there are some great deals around.If youreon the hunt for a bargain Spanish home, do you really know how to tap intothe current opportunities?
You could start with this list of Spains largest banks that have mountains of repossessedproperties to offload (source: www.spanishpropertyinsight.com).Spains banks are now the countrys biggest real estate companies, according to pressreports,and unsurprisingly, they are eager to liquidate their stock as fast as possible.
To help them do this, they are classifying repossessed properties as either A or B.Type A represents new build from developers who cant repay their loans 70 per cent of banksstock is reported to be in this category. Having never been occupied, type A properties aregenerally in good condition and many banks are using their own recently set-up property divisionsto sell them, offering discounts and preferential financing terms.
Type B properties are made up of repossessions from homeowners who cant repay their mortgage there will be an estimated 74,000 of these this year alone.But there is an obvious danger with type B properties many of them are poor quality as they have been vandalised by former owners.
Typically, banks are selling type B properties through external channels, offering discounts of upto 50 percent. So when searching for a bargain in Spain, beware that not everything that seems like a good buy is a bargain research and legal advice are still crucial.
10 Spanish banks with bargains to offload
Spains largest bank has 1,300 discount properties, 400 of which have already been sold, with discounts of 20-30 per cent and 100 per cent financing with terms of 40 years. Now selling to the general public through its property division Santander Altamira Real Estate.
Property portfolio largely comprised of building land, rather than housing. Selling to professionals through its property division Solvia Gestin Inmobiliaria.
Selling to the general public through 20 agents, including Knight Frank, and offering preferential fi nancing terms. Setting up its own real estate portal, Casaktua. Best deal: two-bed fl ats in Ensanche de Vallecas (Madrid), 164,500 (144K).
Has 1,000 properties on its books, primarily in big cities and on the coast (Madrid, Valencia Region, Catalonia and Murcia). Offering discounts of up to 40 per cent and favourable fi nancing. Selling to general public through its website and auction house Reser. Best deal: 67sqm flat in Barcelona Old Town, 152,500 (134K).
Offers 2,500 properties (not all residential) with discounts of 20-50 per cent, sold through real estate division Mediterranean Inmobiliaria with an auction and bidding system online. Best deal: 98sqm fl at in Elda (Alicante) for 35,610 (31K).
Has 700 properties around Spain on offer to the general public, but preferential fi nancing terms are currently only offered to employees and family. Selling through property division Aliseda Gestin Inmobiliaria. Best deal: 93sqm flat in Manresa (near Barcelona), 166,000 (146K).
Spains second-largest bank is offering 900 new-builds and 600 resales all over Spain, available through its property division Anida. Best deal: 56sqm flat in Madrid, 125K (110K).
With 3,600 properties all over Spain, offers 1,700 with discounts of up to 30 per cent, and 1,800 properties available for rent with option to buy. Selling to general public through real estate division Procam, and promises to repurchase property if buyers run into problems paying the mortgage. Best deal: 85sqm fl at in Chueca (central Madrid), 157,500 (138K) or 540 (474)/ month in rent. www.caixacatalunya.es
Spains biggest savings bank has 2,000 resales all over Spain, including 320 in Murcia. Offering discounts of 25 per cent minimum, and fi ve per cent on top for good clients. Selling through select estate agents, its own real estate division, Servihabita and branch offi ces. Best deal: 76sqm fl at in La Latina (Madrid), 205,200 (180K).
Offers three properties at give-away prices every week through its website. Half of its 800 resale units are on the coast Valencia (240), Alicante (134), Castellon (59), Murcia (24). Best deal: 90sqm fl at in Barcelona, 225K (197K).
Prices correct at 24th June 2009