June 3, 2011 at 10:05 am #56244
I was recently in Malaga visiting my Bank. The staff informed me that they are doing good offers on their repossesed properties. ( Music to my ear & also made me realise that a reasonably competant Banking staff has been turned into a Estate Agent !!!!!!! )
The offer. All acquisation cost paid by the Bank. mortgage for 40 years, first year 0.25% the rest 0.50% above Euribor for the rest of the life of the mortgage & if required the first two years interest only.
She also said that as the Bank knows me the mortgage will be offered without much paper chase etc. I went to visit one of the sites that I was interested in & out of the 180 +/- units around 160 +/- were unsold. Probebly the sold ones were before the down turn. The block was grossly neglected due to the impasse between the Bank & the Developer.
The prices €226k two bed & €185k for one bed. ( The going rate in the area €140k & €115k ) not to mention that once the block is sold out the buyers have to spend another €10k =/- on uplifting the block. Further whilst the apartments are lying empty the owners will have to pay Banks/Developers service charges for the empty units.
I made an offer on three apartments on the expectations that one would be accepted considering the numbers that they need to shift. Not expecting much commercial pragmatism. I was told by the sales staff that we are not accepting any offers as we are selling at the asking prices. I left the site informing the girl that my offer is there & they know how to contact me. I am not expecting a Christmas card from them
June 5, 2011 at 3:32 pm #104779
You can’t complain about the loan offer rules but I still can’t understand why they just don’t lower the prices and get rid of some of those stocks of houses they have. For the bank it should be a lot more important to exchange bad loans for cash. But it’s probably a matter of them trying to hide their losses for another couple of years and just move the mortgage on to someone else. At the moment Spain haven’t been hit that hard by the “George Soros” of the world but it’s just a matter of time.
The area south of Alicante down to La Manga litterally have so many bank repos these days that it will take 20 years to clear out these stocks of property. Instead of lowering the prices the banks are trying all sorts of weird offers with rent to buy offers etc. Is that really a good option for the banks in the longterm if the market doesn’t pick up in value in two years time? Dump the prices to what the market is willing to pay and the banks will become much healthier. Just getting someone new to pay of the rents for one or two years want solve a lot.
June 6, 2011 at 11:34 am #104813
You maybe right that they are hiding their losses etc. In my case it was a one to one transaction and the sale at the going market rate would not have any reflection on their Balance sheet on the contrary they could have pushed their sale statistics.
June 9, 2011 at 9:31 am #104886
My Spanish bank are also pushing their thousands of repossessions on to existing customers. I’m not interested in buying, or selling at this stage, but had a look to satisfy my curiosity.
What they are offering is appalling, over-priced rubbish, at every price level, and they are not open to offers. They will never sell any of them, and they must know it.
Some of the lower priced apartments are also available for life-long rentals at something like 300 Euros a month. But they have invariably had all their fittings removed by the repossessed owner and have been vandalised. The banks expect the new tenants to carry out the necessary repairs.
None of it makes sense.
June 9, 2011 at 9:45 am #104887
It does not have to make sense. In Spain it never does !!!!
Building millions of properties, expecting the whole world to come and live in Spain not knowing that no sector of economy grows forever is just an example on the subject matter.
June 13, 2011 at 11:17 pm #105026
If you told us how much you had offered, it would make it more exciting.
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