- August 28, 2012 at 9:17 am #57029
There are numerous properties on sale in Spain that are unsellable because there is such a vast amount of property on sale and in some cases the properties are in urbanisations where there are few people living there and numerous properties that are vacant and up for sale. What I am asking is if a property is unsellable because nobody is interested in buying the property then what is that property worth? Is that property worthless, in other words, worth nothing at all, worth zero euros and can you effectively buy these properties for pennies, or more accurately, cents, or do these properties actually have a value even though nobody wants to buy them?
- August 28, 2012 at 10:37 am #111824
Plenty of property in Spain has no value at all, and some may actually have negative value. Owning a property that you no longer want to use is an ongoing liability in terms of taxes and other costs, so at some point it must be worth paying someone to take the property off your hands. The negative value should equate to the cost of demolition and disposal plus the administrative and legal costs of terminating the liabilities, plus a bit of profit for whoever takes the task on. This is what has to happen eventually for some of the worst developments.
- August 28, 2012 at 11:08 am #111825
Interesting. I guess a flat in a large block of unsold properties is worthless if no one wants to buy it, nor anyone is buying the others around it and therefore it actually costs money as there are community fees, basic electricity, rubbish collection, water which also have to be paid.
The banks seem to be funding the community fees, I wonder if they let the electricity be cut off and then there are high bills to get reconnected if someone buys the property?
But, it maybe be worthless but there are a heck of a lot of fees to pay when you buy a property in Spain.
So it’s not worth pennies it’s just sitting empty….waiting for something, what? to end the crisis??
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