BIG CHANGES IN SPAIN!!!
Express Sale has recently secured exclusive access to HUGELY DISCOUNTED Spanish repossession property.
The Spanish property market has been swamped with bad press for a long time. Land Grab laws, property built without construction or planning permits being bulldozed, not to mention significant devaluation for the last 2 years…..
The clever money has judged the Spanish market to be bouncing about the bottom and is now starting to move back in; in a VERY BIG WAY!
There is currently estimated to be around 16 Billion Euros worth of built, yet unsold new-build property in Spain. In the UK prices have only been falling or stagnating for a short time but Spanish prices have been in freefall for years, partly due to a large oversupply of property and more recently problems have been compounded by the “credit crunch.”
For the last couple of years many of you will know that the UK cash buyer market has operated at about 20% below a current survey value and in recent months has started pushing to 25% and even 30% in some cases.
In Spain, to secure a cash sale for the last year, vendors were having to offer between 30% and 40% below a current survey value.
Combined with this, Spanish banks have been repossessing massive amounts of property. Up until recently however the banks weren’t willing to sell the repossessions at large discounts. 30% discounts were about the best you would find.
Things have changed! 50% - 60% Discounted Bank Repos.
The Spanish banks are now so desperate for cash that within the last few weeks many of them have started to sell their repossessed property for just what they have lent against them and in some cases will take offers below this.
This means that you can pick up both new and resale property for up to 50% to 60% discount from a current survey value.
Repossession in Spain is a drawn out process and at its fastest will take between 8 or 9 months. As a sign of just how desperate the banks are, they are now even selling on the individual mortgages on properties that in the process of being repossessed, so as to allow someone else to take over the repossession!
Exclusive access to bank repossession lists.
Express Sale have secured exclusive access to these bank repossession and credit sale lists. Currently we have access to the lists from 4 banks in the Costa Del Sol and Minorca. But these agreements will be expanding to cover the rest of Spain over the coming months.
The types of property are wide ranging, from individual apartments and villas right up to entire developments and blocks of flats and development sites or land. There will be prices to fit every investor’s wallet, from apartments worth 140,000E available for 60,000E, all the way up to blocks worth 145,000,000E available at offers under 72,000,000E.
A fast process, Finance & Due Diligence
Our team is centered around a very well respected Spanish legal firm which has a huge amount of experience and expertise in the Spanish commercial property market.
When you identify a property which interests you on paper, (you will initially have access to the address, size, type, price and discount of each property) we will have part of the legal team visit the property for photographs and do the required due diligence at the local town hall to check that it has all of the required planning and building permissions, all prior to you deciding to visit or move any further.
Assuming that the property still meets your requirements we have an international finance company in London capable of arranging mortgages on any size of purchase. You are welcome to visit and have us show you the property and then the legal team are able to finalize the due diligence and take you through to completion.
The legal team’s expertise is invaluable in Spain to ensure that you don not fall foul of any of the common pitfall you hear about in the news. They are also exceptionally well placed to ensure that your valuations and the valuations provided by the bank are realistic CURRENT valuations and not inflated values as can often be the case in Spain.
For the knowledgeable and well advised investor, we believe that this is a very real and very attractive opportunity.
200 Million Euro Investment Fund
There are already a few investment funds which have been started up this year with the sole purpose of buying up heavily discounted repossession property in Spain.
As an indicator of how serious we are about the opportunities in Spain our group is starting a fund. We have sourced 10 investors who are each to put up 10 Million Euros. The Royal Bank of Scotland is then in agreement to match this with a further 100 Million Euros. The purpose of the fund will be to buy and hold for at least 5 years before considering any re-sales.
If you are interested in any level of Below Market Value investment anywhere in Spain, either give us a call or send us an email asking to be added to our Spanish investor list.
0800 634 9634
Info@express-sale.co.uk