There’s no denying it. If you’re in a cash position, you’re going to bag a bargain in Spain. We have thousands of Spanish bank repossessions throughout the country. Many of these repossessions have 110% mortgages from the selling bank but usually, the prices are slightly higher to allow for the incorporation of the 7% tax rate.
With these 110% mortgage deals, it really is what you see is what you get. With as little as EUR 3,000 to reserve, the bank will process your paperwork and qualify you for the mortgage. From then on, it’s a case of signing the forms, begin paying the mortgage and start enjoying your new home in the sun.
Many investors are preferring to snap up bargain real estate in Spain by using their cash power. When it comes to pricing, Cash is King. We are currently acting on behalf of buyers securing up to 20% discounts from bank listed prices.
So which is better? No money down or all in?
The answer to this comes down to the individual’s situation. Many of our buyers have regular income but not a lot of savings. They can afford the small deposit of EUR 3,000 but couldn’t afford to pay EUR 100,000 down. This enables them to purchase now, capitalise on summer rental and more or less pay off the mortgage with the help of companies like AirBnb, HolidayLettings and HomeAway. Nonetheless, the prices are still down 50% from their peak.
If you’re looking to spend your bonus and secure a bargain holiday property without the worry of regular monthly payments, then you should be using that cash pile to buy distressed real estate in Spain.
Whatever you’re buying and however you’re buying it. Be sure to have your NIE Number organised before you go to Spain!