Looking for information on buying repossessed property in Villamartin, 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 could not be built quick enough to meet demand. The affordability and ease of air travel along with the short flight and Mediterranean climate meant more and more people were buying Spanish property.
However, in 2008, the world was hit by a financial crisis. Spain was no different and in particular, 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.
Many foreigners who had purchased property in Spain in previous years were experiencing their own financial problems back at home. This combined with an increase in interest rates in Spain meant they were unable to keep up mortgage repayments on their holiday homes leading to the unfortunate circumstance of negative equity. Due to the dire situation, 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 demand for property in Spain increasing once again as the economy improved, banks began selling the repossessed properties to begin making their money back. This leads us on to the question, “repossessed property for sale in Villamartin 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 bank repossession property in Spain. Whether or not it is right for you will depend on your individual circumstances.
PRO - There is the possibility of purchasing a repossessed Spanish property using 100% finance.
PRO - You are likely to be given a low interest rate as you are purchasing from the bank themselves.
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 gone.
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 "villas for sale villamartin needs renovation" 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. You may want to hire someone to check things over before agreeing to 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 cheap Spanish property for sale in Villamartin 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 property for sale in Villamartin l 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 the Villamartin area.
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 what you’re getting - no cut wires or pulled out plumbing. Building regulations in Spain have also changed over the years meaning new builds are now built to higher standards with better quality materials.
This leads on to another massive pro of purchasing a new build property compared to 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, you will need a cash deposit and will not be able to use 100% finance. You are also unable to barter on the asking price. The price of the property is set by the builder and is completely non negotiable.
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. You can get a lot for your money in Spain compared to some other countries and all in a lovely all year round Mediterranean climate.
In Villamartin, the community is varied, with some living permanently whilst others just visiting for the golf season. Villamartin Golf Course is now one of the most recognised golf courses on the costa blanca. Of course, you don't need to be a golf fanatic to appreciate the stunning green areas and lazy way of life within this area. Villas, apartments and townhouses are all available for purchase here.
Both Villamartin and nearby Los Dolses Plazas have many shops, bars and restaurants. There is something here for all tastes and the atmosphere here makes it a good choice for singles, couples and families.
La Zenia, Campoamor and Playa Flamenca are all superb beaches and all within a 10 minute drive from Villamartin. Watersports of all types can be enjoyed here as well as food and drink throughout the year, served from the beach bars. Please click here to see some great properties in Villamartin all with our Movehappy package saving you thousands of Euros.
Movehappy specialise in property for sale in Villamartin. Our extensive portfolio includes new, off plan and key ready properties.
Our carefully selected properties range from just €110,000 for a fully furnished one bedroom apartment to €387,900 for a fully furnished 5 bedroom detached villa both within easy walking distance to the Plaza and golf course.
All our properties in Villamartin come complete with our Movehappy package saving you between €6,000 and €18,000 and with a complete after sales service there simply no easier way to purchase your new property in Villamartin.
Phenomenal company. Our experience buying in Spain could not have been any better than it was with Movehappy.
Our trip to Spain to view Villas was faultless. We were picked up from the airport and taken to a hotel Movehappy had recommended. We were given time to enjoy ourselves before being taken to view a selection of beautiful Villas the following day. We were lucky enough to find our dream home in Villamartin quickly. We were assisted in opening our Spanish Bank account and paying the deposit required to secure our home.
Since returning to the UK, Movehappy has continued to assist us with every aspect of purchasing our Villa and have kept us updated throughout. At no point in our journey so far have we felt any stress or pressure, so thank you Movehappy for everything.
We are so very excited to start our new life.
Jessica & Mike, Leeds, UK