Spanish Property Sales Increase Proves The Recession is Over
10 Dec 2010
With the official figures from the property registry in Spain showing sales increasing by 13% year on year for the third quarter of this year It’s pretty clear that we are now at the bottom of the recession but how long the Spanish housing market bumps along the bottom no one really knows.
One of the major driving forces has been some Spanish banks offering 100% mortgages on quality property projects that they have had to repossess taking the view it’s better to change bad debt for good debt. This is attracting investors from all over the world who can now buy property for 10% Costs and have a two year interest only mortgage meaning there monthly mortgage payments are no more than 70% of what they can rent the property for. They are also buying these properties at 35% or more below the original asking price and current mortgage valuations so it’s no wonder International property investors are attracted.
There are deals like this to be had all over Spain but the best ones to date are in Los Monteros and Elviria in Marbella Costa del Sol with asking prices from €235,000. The reason these deals are particularly good is that they are in prime locations and are in properties people actually want to live in unlike a lot of other Spanish bank repossessions.
However with new bank of Spain rules coming into force for the Spanish banks in 2011 there may not be too many of these deals available next year. However the good news is the Spanish property market is finally moving in the right direction.
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