Soliva bank repos: 6k sales since March, foreigners + 117pc

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This topic contains 15 replies, has 7 voices, and was last updated by Profile photo of Anonymous Anonymous 3 years, 6 months ago.

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  • #57518
    Profile photo of Anonymous
    Anonymous
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    Soliva bank repos: 6,000 sales since March, sales to foreigners up 117pc 🙂

    Solvia – the property arm of Banco Sabadell – has revealed that it sold 5,946 homes during it’s lates “Impossible not to buy” campaign running since the beginning of March, 85pc of them were resales, and 57pc were cash buyers.

    By region. 2,245 of sales were in the Valencia Community – home to the Costa Blanca, and 607 were in Murcia. The two regions combined accounted for more than 50pc of Solvia sales in the period.

    The “impossible not to buy” campaign offered discounts of up to 40pc and bank financing from Baco Sabadell.

    Solvia has also launched a new page in Russian, as Russian buyers are the second biggest group of foreign buyers after the British. A focus on the foreign buyers is an important part of Solvia’s strategy: In the year to mid-May Solvia had made around 600 sales to foreign buyers, a y-o-y increase of 117pc.

    Last year Solvia sold 13,777 homes, double the year before. This year the target is 16,000 sales.

  • #117063
    Profile photo of Anonymous
    Anonymous
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    Solvia have also increased the price of lofts for sale in Valencia City from €70,000 to €90,000.

    The initial repo value was €120,000, which Solvia reduced to €70,000 to sell. Having sold 100 out of a stock of 130 they put up the price to “respond to demand”.

    It is mistake to think that all prices for all types of property all over Spain will continue falling, as this example shows.

  • #117064
    Profile photo of Anonymous
    Anonymous
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    well, I have personal experience of dealing with them recently on two properties. I made two separate offers just before the end of the “campaign” which they declined and have subsequently increased both properties by 20% in the new May/June offer. They are certainly selling. Servihabitat recently sold 180 in one week.

    Just dealing with another bank at the moment and they are really not that flexible. There is a lot of money out there waiting for a home!!!.

  • #117070
    Profile photo of The Australian
    The Australian
    Participant

    what’s the current mortgage rate in Spain? 6%?

  • #117072
    Profile photo of Anonymous
    Anonymous
    Participant

    For ours The Australian….will be 1.48% in July ‘whoop, whoop!!!!’

    but for new mortgages yes, I guess 6% plus all the other fees and costs they add to it all.

  • #117076
    Profile photo of The Australian
    The Australian
    Participant

    @itsme wrote:

    For ours The Australian….will be 1.48% in July ‘whoop, whoop!!!!’

    but for new mortgages yes, I guess 6% plus all the other fees and costs they add to it all.

    1.48 %??

    😯 How can that be?

    Thanks

  • #117080
    Profile photo of Anonymous
    Anonymous
    Participant

    Our 2006 deeds say that we pay 1% on top of the Euribor rate. It’s currently at 0.48 for May, which is our deciding month for the 12 month rate so 🙂

  • #117088
    Profile photo of Anonymous
    Anonymous
    Participant

    Nice deal. =)

    A friend of mine had a similar deal with a swedish bank during the lehman brothers crash and they just removed his rebate. I guess it all depens on how your loan agreement is worded.

  • #117093
    Profile photo of The Australian
    The Australian
    Participant

    @itsme wrote:

    Our 2006 deeds say that we pay 1% on top of the Euribor rate. It’s currently at 0.48 for May, which is our deciding month for the 12 month rate so 🙂

    is there any similar deal available now?

    Thanks

  • #117101
    Profile photo of Chopera
    Chopera
    Participant

    @itsme wrote:

    For ours The Australian….will be 1.48% in July ‘whoop, whoop!!!!’

    but for new mortgages yes, I guess 6% plus all the other fees and costs they add to it all.

    I can beat this – we’re paying 1.1% (euribor + 0.6%)…but…wait for it… this works out at €2,640 a year on our €240k mortgage. However we also get a tax rebate (desgravación) for paying off our mortgage of just over €3000/year. So the Spanish government is not only covering our mortgage costs but we’re actually making a slight profit from having a €240k mortgage!

    This is why I was banging on about desgravación when Rajoy reintroduced it (before getting rid of it again). With low interest rates it is an absolute give-away. Most people in work and able to pay off €9k of their mortgage each year (€18k for a couple) are effectively not paying any interest at all on their mortgages. Crisis? What crisis?

  • #117106
    Profile photo of Anonymous
    Anonymous
    Participant

    Good for you Chopera. Enjoy it whilst it lasts 🙂

    But as I understand it, there is no chance in hell of getting this kind of a deal if you are a new borrower. You are more likely to get Euribor +4pc with a high floor and no ceiling to boot. Or am I wrong?

    I guess you can get better rates if you relieve the bank of one of their repos.

    Mark

  • #117107
    Profile photo of Chopera
    Chopera
    Participant

    Yes I doubt if you could get less than Euribor +4pc these days, unless buying from a bank. We went to look at a Bankinter property last month and they suggested offering us Euribor +2pc, and 100% finance. That’s the best I’ve come across. It distorts the market a lot. If I were to move house now, taking out a similar size mortgage to the one I have, I estimate I’d be paying €10k more each year (taking into account the loss of desgravacion as well). Of course now I’d pay less for a similar house to the one I have, but even if I knocked off €100k from the mortgage I’d still be paying a lot more each month. This must be another reason why transaction volumes are so low – it’s not just negative equity, but even those who can sell their house would need huge discounts to make it worth their while.

  • #117110
    Profile photo of Anonymous
    Anonymous
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    @chopera wrote:

    Yes I doubt if you could get less than Euribor +4pc these days, unless buying from a bank. We went to look at a Bankinter property last month and they suggested offering us Euribor +2pc, and 100% finance. That’s the best I’ve come across. It distorts the market a lot. If I were to move house now, taking out a similar size mortgage to the one I have, I estimate I’d be paying €10k more each year (taking into account the loss of desgravacion as well). Of course now I’d pay less for a similar house to the one I have, but even if I knocked off €100k from the mortgage I’d still be paying a lot more each month. This must be another reason why transaction volumes are so low – it’s not just negative equity, but even those who can sell their house would need huge discounts to make it worth their while.

    I’ve been offered an “in principle” mortgage for Euribor + 3.5%. That’s for a non bank owned property and it is reasonably flexible as to where the property can be. There are certain “no-no” areas though.

    However, the re-capitalisation mortgage (I think that’s what it is called) that I’ve been offered in the UK is way cheaper, so if I decide to get a mortgage, that will probably be the option I will go for.

    D

  • #117149
    Profile photo of The Australian
    The Australian
    Participant

    I think it differs based on what area the property is in.

  • #117154
    Profile photo of Anonymous
    Anonymous
    Participant

    Our Euribor plus 1% on the deeds, fixed for the whole mortgage term, is why I have spent a year arguing with the bank about our small arrears. They wanted us to remortgage at a minimum 4%. The bank manager shouted, banged her fists on the desk, threw papers at me… all because she was desperate to get us off that low rate.

    We’ll be back to the price we paid for the place by November next year…. trying to be positive about it all….

    I spent 5 hours of my weeks ‘holiday’ in Spain a few weeks ago to argue the case for getting a loan for the arrears rather than forcing us to remortgage. It was worth the waiting around to get a personal loan at 8%. We can realistically clear it in a few months completely and we are back up to date with our mortgage. Well, we are technically but the online banking still shows arrears but apparently the bank workers have been on strike, Banco Mare Nostrum. They do now at least reply to some of my emails so there is slow progress with them. I think that i’ve just shown them that I won’t give up proving that i’m right and they are wrong most of the time…. 😉

    With buying bank properties are they still fixing floor levels, eg: first year is 3.5% on top of the Euribor and then from year 2 onwards it’s a minimum of 4% and a maximum of 25% or whatever? Are those ‘floor’ levels still allowed if the banks can get away with it?

  • #117158
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    Anonymous
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