This is a website for buyers, owners, and sellers of property in Spain, offering reliable information and resources to help you get things done with confidence. It is run by Mark Stücklin, author of the Spanish Property Doctor Column in The Sunday Times (2005-2008), and the book ‘Need to Know: Buying Property in Spain’ published by Collins.
Holiday-home bank repos with prices back to the early ’90s, up to 80pc discounts
Spanish bank Banesto has put a selection of homes, including holiday-homes, on the market with an average price of 645 €/m2, taking prices back to where they were in the early ’90s, which means a discount of 80pc.
According to data from the Ministry of Public Works (incorporating the Housing Department) the last time property prices were that low was back in 1991.
With prices starting at €14,800 for a property in the Canaries, the homes being marketed by Casaktua (Banesto’s property division) have an average size of 69m2 and 2 bedrooms, plus access to a maximum of 100pc financing and 40-year loans.
gtibruce says:
Can anyone tell me please. If one buys from a bank, then every legal aspect will be covered i.e no one coming later after the sale, to bulldoze it down, or spanish locals wanting to claim the land etc. Will the property be owned securly 100% by the likes of us ex pats.
Because as i see it, the banks would surely have their own clued up straight solicitors involved to take a property back from failed mortgagees and place it on their books in the first place.Or is it not that simple as usual!? I
Peter says:
No, its not as easy as that gtibruce. Banks gave out mortgages very easily a few years back – they probably just checked it had a building licence. This building licence may have been one of the many illegally signed off by corrupt town halls.
You still need to use a solicitor that is independent of the bank to thoroughly check out ANY property you intend to purchase. What you will need is a certificate of ‘No Expediente’ which states that the authorities have not raised a query on the legality of the property. You also need a licence of first occupation and in some areas (eg. Costa Blanca) a licence of second occupation if its a resale.
We are an agent and solicitor in Almeria and I can tell you that I have seen banks trying to sell off properties very cheaply as they are unable to obtain the certificate of No Expediente.
Properties without this certificate may turn out to be OK but it might take years to resolve or it might get bulldozed so we always tell clients to walk away if all the paperwork is not in place.
Fran says:
I bought my flat in 2001, pay my mortgate, rates, taxes, and have had no problems. I check my Spanish bank account online, have my gestor (tax adviser) and enjoy it. I hate the management company that looks after the pool area I must admit, but if you buy a villa you won’t have that problem. One piece of advice though, do NOT set up a standing order or direct debit for anything. Pay your bills as and when you get them. Getting redress in Spain is virtually impossible (no financial ombudsman there) so hold those purse strings tight tight tight.
William says:
Once one bank starts off loading, then wait for the landslide, as they will all pile in, as they will be fearfull of off loading at the bottom of the market. I would think we will see at least another 25% reduction, if not more.
So hold back, because if you buy now, you will stabalise the market and prices won’t drop. It’s like a game of poker.
gtibruce says:
Thanks for your replies > Peter, do you have rental bedsits, and apartments on your books and if so, what real estate name are you in Almeria?
Mexberry says:
I note that the bank is offering a nil downpayment and 40 year mortgage. This is the very type of loose lending that was instrumental in creating this financial nightmare around the world in the first place. Haven’t the spanish financial regulators prohibited this reckless lending?
Mexberry.
easom says:
Met people who bought from a bank. Turned out a problem with the electric cost 16,000 euros to sort out – yes sixteen thousand! Bank now ignores and fails to help knowing they do not have the funds to sue.
Worse, they found out after completion that no mains water is connected and they now haul it in with a plastic container. A mess and the bank does not care.