Looking for information on buying repossessed property in Torrevieja, Costa Blanca? Find out the truth, all you need to know and find out if it is still worth it?
Spanish bank repossessions the history
In the late part of the 20th Century, properties in Spain were not being built fast enough to meet demand. The affordability and ease of air travel as well as the short flight and Mediterranean climate meant more and more foreigners were buying properties in Spain.
However, in 2008, the world was hit by a financial crisis. Spain was no different and the Spanish real estate market suffered in a big way. People became bankrupt overnight, building stopped and thousands of properties were left empty and abandoned.
Interest rates in Spain went up significantly meaning many foreigners were unable to keep up mortgage repayments on their Spanish holiday homes. Many were also experiencing similar situations at home. This dire situation left many in a state of negative equity and millions of buyers made the decision to abandon their holiday homes, the banks repossessing them.
Seven years later in 2015, average property prices in Spain had decreased by as much as 65%. With the economy improving, demand for property began to rise once again and banks began selling the repossessed properties to begin making their money back.
This leads us on to the question, “Repossessed properties in Torrevieja l Is it really that good?”
Pros and cons of buying a bank repossession
As with anything there are both pros and cons of buying a repossessed property in Torrevieja. Whether or not it is right for you will depend on your individual circumstances.
PRO - Sometimes it is possible to purchase a repossessed Spanish property using 100% finance meaning you do not need to worry about having a large cash deposit.
PRO - You are likely to be given a low interest rate from the bank as you are purchasing from them directly rather than from a third party.
PRO - Depending on the bank they may be flexible when it comes to price and accepting offers lower than the asking price. This will generally depend on the state of the bank itself at the time and how quickly they want the property in question sold.
CON - Purchasing a property directly from the bank means it is possible it has debt attached to it.
CON - Many owners who have their properties repossessed do not leave them in the best condition. If you were to search for "repossessed properties in Torrevieja spain" you would likely come across bank repossession properties. Buying from the bank, they generally sell the property in the condition it has been left in. It has been known for wires to have been cut and plumbing to have been pulled out and so on. If you decide repossessed properties in Torrevieja are for you, it may be worth paying someone to thoroughly check the property before going ahead with the purchase.
CON - It is possible you may need to carry out legal and property checks yourself if the bank does not know everything about the property.
It is not necessarily a ‘con’ but if you decide to begin looking for bank repossessed properties in Torrevieja for example, bear in mind when you do that you may not be able to find all available repossessed properties online. It may be worth having a conversation directly with your branch to see what they have available. They may be able to alert you of any new available properties in the future too.
New build property versus Bank repossessions
In order to answer the question “repossessed properties in Torrevieja. Is it really that good?”, you may want to compare the above pros and cons with those of new build properties.
With the economy recovering, building started again and there is now a large selection of new build properties available in Torrevieja and the surrounding area including apartments, townhouses and villas.
Looking at the pros and cons above, perhaps the most obvious advantage of a new build property is that, well it’s new. No one has lived in it previously and you know exactly what you are getting (no cut wires or pulled out plumbing).
Building regulations in Spain have also changed over the years meaning properties are now built to much higher standards using better quality materials.
This leads on to another massive pro of purchasing a new build property over a bank repossession; the Seguro Decenal. The Seguro Decenal is a 10 year warranty which is now mandatory for all residential new build properties in Spain as per Article 1591 of the Spanish Civil Code and statute 38/1999 of Spain's Building Act. This will cover structural faults such as the retaining walls and foundations and will be given as an insurance policy from a third party property insurer. This is a compelling financial advantage of purchasing a new build property as well as giving buyers peace of mind.
When it comes to financing a new build property in Torrevieja, you will need a cash deposit and will not be able to use 100% finance. You are also unable to negotiate on the asking price. The price of the property is set by the builder and you can not barter with them.
You are likely to have a bigger selection of properties to choose from if you opt to go down the route of a new build property. The Spanish real estate market is booming once again and is attractive for those wanting a new life in the sun and investors alike. More and more new developments are being built in and around Torrevieja. You can get a lot for your money here compared to many other countries, and all in a lovely all year round Mediterranean climate.
Torrevieja is located at the southern end of the Costa Blanca in the province of Alicante. It is known for its vibrant atmosphere, beautiful sandy beaches and of course its Mediterranean climate. The area also boasts the biggest salt flats in Europe, which are bursting with nature. The unique pink waters and pink flamingos are a must see.
In terms of local amenities, Torrevieja has everything you need. Whether you are looking for a quiet lunch or an evening of entertainment you will never be short of a bar or restaurant to choose from. There are several supermarkets, banks, hairdressers and much more but La Zenia Boulevard, one of Alicantes biggest shopping centres, is just 10 minutes away too. With over 150 shops, bars, restaurants, play areas and more this is a popular destination for families, couples and singles alike.
If you would prefer something more traditional, there is a large Spanish craft market near the famous Torrevieja fountain offering a variety of goods. There is also a weekly market every Friday morning behind the Aqua Park with around 700 stalls offering fresh local produce as well as a range of other local goods including clothing, home goods, art and much more.
One of the big attractions to the area is the many golf courses on offer. There are several golf courses just a short drive away from Torrevieja including Villamartin, Las ramblas and Campoamor to name a few. Villamartin Golf Course is now one of the most recognised on the Costa Blanca. It is located roughly a mile from the sea and the front 9 holes offer beautiful sea views. Of course, you don't need to play golf to appreciate the lovely green areas and lazy way of life this area has to offer.
Torrevieja has many lovely sandy beaches ideal if you would like a dip in the sea, a family day out or just a walk along the promenades lined with bars and restaurants. There are several other blue flag beaches nearby too including La Zenia, Cabo Roig, Campoamor and Playa Flamenca to name a few.
Torrevieja offers the best of both worlds with everything you need without losing its traditional Spanish feel. As you walk the streets you will come across typical Spanish plazas where you can enjoy the cafe culture, not forgetting the remains of the historical Roman docks which are situated alongside the old watch tower of La Mata. This tower along with the other ancient watch tower, El Moro, were used as lookouts for pirates in the middle ages.
Whether you're a food fan, history lover, sports buff or a sun worshiper, you will not be short of places to visit or things to do. Torrevieja has something for everyone.
If Torrevieja sounds like the place for you then why not browse our range of repossessed properties for sale in Torrevieja, all of which come with our unique Movehappy package saving you thousands of Euros.
Movehappy specialise in repossessed property for sale in Torrevieja and the surrounding area. Our extensive portfolio includes new, off plan and key ready properties.
All of our properties come complete with our Movehappy package saving you between €6,000 and €18,000 and with a complete after sales service there is simply no easier way to purchase your new property in Torrevieja.
As exciting as it was to begin looking at properties in Spain, I was also filled with dread at the thought of having to go through an estate agent. Pushy salesmen have always been a ‘pet hate’ of mine. For this reason as well as many others I am delighted I chose Movehappy to deal with my purchase in Torrevieja. At no point did I feel that I was being pressured in the slightest. For me, this was incredibly important.
My sale was dealt with in a professional, timely and friendly manner throughout. I hope to do business with you again in the future.
Timothy Chand, Brighton, UK