There has been lots of talk about now being the perfect time to buy Spanish bank repossessions in Spain but why now?
The banks have been dragging their feet over selling the properties they hold in the hope that things will improve. However, after the stringent reform unveiled by the government it will be worth their while to sell their property assets.
The value of the property assets held by the banks is less than the value given in their balance sheets, but is higher than their declared value in the new financial reform, a reform in which Mr Guindos, the Minister for the Economy, has taken a tough stance, according to the university professor Manso Olivar. The professor argues that the government has brought in this new reform in order to send a message to the banks: “If they are heavily indebted and do not have any other source of liquidity, they will have to sell their property assets even though prices are not very good at the moment, just like any other business would have to do in the same situation.”
In reality we are now seeing bank repossession in Spain being priced very realistically so much so they now represent the best opportunities which was never the case before.
Another factor that affects UK buyers positively is the rate of the Euro People buying property for sale in Spain can now take advantage of the most favorable exchange rate between sterling and the euro for 19 months. As Marketing director of Spanish Hot Properties I believe that everything is in place it’s just about confidence .The Eurozone debt crisis is weighing heavily the European Central Bank’s and politicians shoulders, which makes sterling appear to be attractively stable and increase in value. Reuters columnist Fiona Maharg-Bravo predicted this week that property prices in Spain are likely to become cheaper in the near future as unemployment rises and the country slips back into recession. This ties in with our experience where for the first time some Spanish banks are being much more realistic about property for sale in Spain.
All that is required for the floodgates of sales to open now is the Euro issue resolving itself and once that happen you will see sales levels not seen since 2007 and before.
Spanish bank repossessions
Property for sale in Spain