Repossesed Properties For Sale in Costa Blanca Are Increasing by:Robert Dowes
The Spanish property market, in common with many countries
, has been affected by the worldwide recession. The Costa Blanca, traditionally one of the most popular areas to buy and sell property, is not immune from the slump in the housing market. Many expatriates who moved to the region for a better quality of life are finding their dreams turning sour as they struggle to meet their mortgage commitments. The collapse of sterling against the euro has added a thirty per cent increase to mortgage payments and has also considerably increased the cost of living for those expats who are wholly dependent upon their savings in UK banks. As a result of these hardships, the volume of repossessed property for sale in Costa Blanca has risen dramatically.The majority of repossessed property for sale in the Costa Blanca is in the form of apartments. The reason for this is that many investors paid a deposit before or during construction and expected to sell at a profit following completion. This strategy worked for many years, but when the property market nosedived, many investors found their apartment to be worth less than the purchase price. The only options were to either walk away and lose their deposit or to attempt to keep up with the mortgage payments in the hope that values would increase in the long-term. In addition, there have been substantial rises in the Spanish mortgage rate and many buyers who were attracted by property for sale in the Costa Blanca have been caught out, thinking that low interest rates were a permanent fixture. However, most Spanish banks use the "Euribor" to set their mortgage rates and this has been increasing as the European Central Bank seeks to curb inflation in the Eurozone. Also, the costof living has risen rapidly in Spain over the last year, meaning less disposable income and more difficulty in meeting mortgage payments.
Many people looking for property for sale in Costa Blanca are interested in finding bank repossessions - not surprisingly, as repossessed homes are often available at massive discounts relative to the true value of the property. Bargains can be found at property auctions, as Spanish banks and private sellers desperate to sell will put up their properties for auction as a last resort. Although you may end up with the bargain of the century, it is also imperative to be cautious as such properties can be in need of lots of structural and cosmetic work, as they are unlikely to have been looked after or had money spent on them for a long time. Another way of finding a repossessed property for sale in Costa Blanca is by directly approaching a Spanish bank. If they have such property on their books, they will no doubt be very keen to offload them. A third way is to directly approach a property owner whom you suspect is a "distressed seller", i.e. one who is in danger of falling behind with their mortgage payments and is desperate to sell to avoid repossession. Look out for private adverts for property for sale in Costa Blanca, especially with wording such as "reduced" or "low priced for quick sale". Also look for property with Spanish estate agents and find out which sellers are likely to accept offers well below the asking price.
Property for sale Costa Blanca
http://www.spainhomeproperty.info/indexqsd.html
About the author
Robert Dowes advises on property abroad, in particular on property for sale in Costa Blanca.
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