Distressed Property Spain | Costa del Sol Property Bargains

Distressed Property Bargains - Costa del Sol

Insight Spain is delighted to offer you a fabulous opportunity to buy genuine bargain "distressed sales" and repossessions which can be viewed and valued right now, unlike off-plan investments which take years to build. Our listed properties are generally 10-30% under current market values, giving the possibility of 80-100% finance, subject to status and valuation.

Distressed property doesn't mean there's a problem. Investors sometimes have a desperate need to sell due to death, divorce, emigration, loss of job or simply cannot financially complete on properties they initially intended to sell on. These owners are forced to make a decision to either sell for far less than the market value or have their property repossessed by the bank or developer and lose their 30% deposit.

The market in Spain has now matured and although there are still some fabulous off-plan property investments available, a new and exciting opportunity has arisen for astute investors in the advent of the recent global credit crisis and resulting downturn in worldwide property markets. In recent years, off-plan property investment was something only practised by the hard-core investor or entrepreneur and was extremely profitable. However, with the internet and television programmes making off-plan investment easily understandable and available to the general public, the market is now somewhat saturated with new properties for sale. The off-plan concept is to buy property with developers offering a discounted price if the investor exchanges at planning stage before building starts. Many investors bought with the sole intention of selling 2 years or so later at an increased price, sometimes 20-30%. Having only paid 30% before completion, returns were, and can still sometimes be, very profitable. The benefits of investors selling before completion are that tax and completion costs can usually be avoided. However, with so many investors trying to sell properties in each development, at the same time just before completion, the market becomes saturated on that particular development. This results in adverse effects on selling prices. Therefore, many investors decided to keep their properties for "Buy-To-Let" purposes with rent subsidising mortgage payments until they feel the time is right to sell for maximum profit. Some buyers however, are unable to hold onto their properties for a variety of reasons, and distressed sales come onto the market with many selling at 10-30% under the current market values.

Costa del Sol Property Repossessions

Every so often we get very rare developer repossessions. These are properties which could not be saved by our distressed sale service or our emergency finance package. When a developer finishes a project, he has no alternative other than to foreclose on uncompleted sales. The developer will not give back the 30% deposit to the buyer, as they have not failed in any part of their contract, nor do they wish to profit from someone's misfortune. The developer simply wants to leave the development and get on with his next project. Our repossessed property partner in Spain has a large network of over 400 UK and Spanish Member Agents and Financial Advisers with investors waiting to buy. With 20 years of repossession and distressed sale experience, they have recently been selected by a number of developers to market their repossessions exclusively and with due diligence. As already mentioned, the developers simply want to move onto their next project and as they have already received about 30% of the purchase price from the previous buyer, they will often allow properties to sell at the original sales price from 2 to 3 years ago. This results in the property being approximately 10-30% under the current market value. Finance of 80-100% for our clients is sometimes achievable on these properties (subject to status and valuation). Obviously, these deals represent the ultimate investment and usually sell within days.

A panel of (English speaking) Spanish and UK mortgage brokers is on hand to help with all your financial needs (whether you buy through us or not), including arranging your 30% exchange deposit from UK equity release, arranging a lower rate Spanish mortgage for your completion, arranging self certification type mortgages for low tax payers, arranging 80-100% finance (dependent on status and property valuation), arranging both capital repayment and interest-only mortgages or arranging emergency finance for vendors of distressed properties. For more information or to receive our latest distressed and repossessed property listings, please contact us today.