Properties at lower prices can be found at Costa del Sol as a result of embargoes and bargains
The housing crisis of 2008 resulted, the embargo on many properties by default on the mortgage. Financial institutions now offer these properties can be achieved by low prices. The cheapest are apartments whose price starts from 42 000 euros, other apartments on developments such as resin can be achieved between 220,000 euros and 300,000 euros, with three rooms and common areas. Studio flats and offices are also available to investors, with values up to 35% lower than those initially possessed, all those properties are for sale at Costa del Sol.
People see it as a great investment opportunity in Marbella and its surrounds because the cost of property is much less than it had before the crisis, and, as noted above, property prices in both the region and the country is expected to increase, so the opportunities to profit from these purchases are safe.
According to Real Estate Consultants Forum on the Costa del Sol (Malaga) they have arrived to pay more than 220,000 euros for apartments that today sell for 120,000 euros. Today, there Manilva bedroom floors 50,000 / 60,000 euros, and two, from 68,000, approximately, although the average price of properties in Manilva is 90,000 euros. In Benalmádena, two bedroom apartments for about 108,000 euros and the environment Vélez Málaga townhouses from 110,000 euros.
Banks and savings banks have been forced to become real estate before the avalanche of stories that have had to stay or buy because the promoters did not pay their loans.
In the past two years they have taken their best weapons marketing (competition of the real estate complain) to attract buyers with large sales hook. But the person who rummages in the offer is basically disappointment.
No bargains in the real estate portals of seven banks and that more properties accumulate and now offer more than 12,100 apartments: CAM (4,500), Caixa Catalunya (2700), Banesto (2300), BBVA (1,900), Santander ( 1.800), Banco Popular (1500), La Caixa (1000) and Caja Madrid (1000).
Beware of quality …
After tracking offers, no doubt that banks make sales, but in general, it is debatable quality of the properties offered. It is found that the offer, dominated by second-hand housing, suffers from major defects: the house is old and needs work or small (and abound 40 meters and there are up to 20) or face. Another factor repeated: there basements and low everywhere.
The reason, already been detected for months to experts, is that banks and still reserve their best assets and holding until the market improves and prices rise. The bank, which already has more than 100,000 flats, of course denies this strategy.
Some entities are being pressured by the floors for second homes that have had to absorb. This is what is reflected to see that more than half of the houses that the People’s Bank provides (through its subsidiary Aliseda) are on the Andalusian coast. The CAM also displays a catalog of holiday homes, while BBVA offers several mini apartments in Marbella from 25 meters.
The buyer can only hope or go to developers and individuals knowing that then achieve a mortgage for your home will be more complicated.
Foreclosures are down
2015 has begun with a slight decrease in the rate of evictions of properties in the province of Malaga in relation to 2014, a year of highs accumulated a total of nearly 3,500 cases. Málaga courts practiced in the first quarter a total of 885 property evictions, a decrease of 7.4% over the same period last year. In Spain, by contrast, the total number of evictions whose legal term is the launch- itself in the first quarter rose 2.1%, with 18,869 cases.
The first quarter of the year, both at national and provincial levels, a decrease in the volume of new foreclosures, representing the beginning of the process that usually ends later in the evictions. Specifically, between January and March 2015 they were initiated in the Spanish courts a total of 20,201 foreclosures, representing a decrease of 16.6% from the 24,226 recorded in the same period last year. In the case of Malaga, the figure was 938 cases, almost 9% lower than the start of 2014.
Foreclosures are the procedures carried out in the Courts of First Instance to allow demand payment of debts secured by pledge or mortgage creditor mortgage deed.
Thus, in the third quarter they totaled 5,959, a figure 12.4% lower than the same period of 2014 and up 31.3% less than in the previous quarter. This procedure is the pre-housing eviction step, although not all end with eviction from their owners.
Since 2007 …
The most affected are the owners who hired the loan between 2005 and 2008, a period which accounts for 59.8% of foreclosures started this quarter. 20.3% are home mortgages constituted in 2007, 17.2% in 2006 and 11.3% in 2008. Of the loans signed in 2007, 0.19% has initiated a foreclosure this quarter. Something that “should serve as a reminder to keep common sense now that it seems that the industry is moving towards normalization.”
By region, Andalusia led executions on homes in the third quarter, with a total of 2,984.
What we recommend to our buyers?
In the region a wide range in stock, covering virtually all real estate categories are present as Ignacio Acosta, real estate expert claims.
According to reports, most of these, almost 40% of all promotions marketing stage is being managed by financial institutions that will be the main engines for sale, both individuals and investors.
If you are thinking of investing through these operators access these purchases advise dealing with people who are accustomed to these practices. expertise enabling lower the level of risk related to operations to carry out the procedures, and distinguish the normal assets of the “toxic assets” are needed; negotiation of financing, actual property valuation, determination of taxes, etc.
If you’re not an expert or not know the area and want to acquire these assets with a value below market you can go to an estate agency and other real estate experts that can facilitate the process of information and negotiation for the sake of simple and safe.
The buyer would like to purchase a property at a steep discount (cushy) to determine before their tax bases to deal with taxes from buying a home, especially to avoid surprises afterwards is advised.
Profits that can be obtained of these bargains
The amount of properties that have been taken by banks throughout the Costa del Sol has been immense as we have seen, and their prices are much lower than the real ones, even to be up to 50% less than its true value. Many buyers, investment companies, and in some cases, realtors, have acquired property in order to remodel, in order to then sell the prperty at a higher price, also with the help of the market.
Other people acquire these properties and perform the parts they want but only with the right budget they have, even if you do not intend to sell then, is
an excellent choice if you think about buying a home completely remodeled, which ultimately may result More expensive.
For those investors seeking properties in Costa del Golf for getting some profit, the number of these bargains, buying is probably one of the best options for investment in the Costa del Golf. This way, you can point sale to a more upscale audience, as there will be raised the standard of your property for sale, and achieve higher profits. So if you have the money to buy one or more of these properties, do not think twice and make your purchase, as the renovations are very good business in Spain and especially in the Costa del Sol where most of the buyers are foreigners with high demands.
Time to invest in Costa del Sol
The second provincial of increased purchases by foreign citizens in Spain is Malaga, where the Costa del Golf is located with a total of 4,739 properties, only in the first quarter of 2014, and this is a recovery process that started from the year 2012.
It should be noted that 85% of the properties purchased here are acquired by foreigners, mainly Europeans. Citizens of countries like England, Germany and France are the largest buyers here, and is mainly due to the strength of the economy of their countries was not so affected during the years of the crisis that began in 2008. Thus, many decided to seek out properties with low prices, many of these, product seizures made by banks to mortgage
The economic crisis in Spain has given prominence to the foreign customer as buyer. Statistics show that more and more buyers from outside Spain buy more floors to total transactions in the market, reaching record highs beat. Despite stabilizing prices, this trend has increased, and is that housing prices in this country are still very attractive especially in the coastal areas such as the Costa del Sol, for citizens from relatively stronger economies than ours.
Special emphasis is perceived with the return of large investment funds from the United States, and although most of these investments are located in large urban centers. The Costa del Sol has received a privileged share by acquiring assets of significant magnitude, such as the purchase of Sotogrande SA at the bottom of American investments Cerberus, as well as some other promotions west and east of Marbella with participation of other US capital, and the purchase of Monte Mayor Golf Club by Russian investors.
As these examples have been developing other large investments in the form of new infrastructure projects and beautification, a process that benefits the surrounding areas revaluing its properties, and increasing the interest of potential customers.
While prices of real estate assets continued to decline, during the previous year in Marbella moderate but noticeable in the value of some homes especially in the most sought after locations increases were reported. Like any reactivation process is clearly seen in the areas of greatest demand, this dynamism began with Marbella, being harbinger of its rapid spread to other areas of the region as Estepona, Calahonda, Mijas, Fuentegirola, Benalmádena and Sabinillas.
Written by: CAPD
Contribution to the reader: Explain what the main investment opportunities in the region, based on properties derived from bank repossessions, such as maximize profits and the future looks real estate in Costa del Sol.