Costa Blanca Repossessions – Your Chance to Snap up a Spanish Property Bargain

The recession has, ironically, provided significant opportunities for smart investors to take advantage of the many Costa Blanca repossessions which are currently occurring. As a result of the economic downturn, and rising unemployment, many people are unable to meet the payments on their mortgages in Spain, and as a result, the bank repossesses the property.

It is estimated that Costa Blanca repossessions are running at their highest level for over 40 years. This means that the banks have thousands of properties on their books, which are not producing any revenue at all, and they are desperate to sell these properties as quickly as possible.

Many Spanish banks over extended themselves during the Spanish property boom of the last ten years. It was often possible to get a 905 or even a 100% mortgage on a second home in Spain, and as a result, hundreds of thousands of people bought apartments and villas all over the Costa Blanca and other regions of Spain. Today, however, the picture is very different, with Costa Blanca repossessions an unfortunate part of the property landscape here in Spain.

Today, banks are one of the largest sellers of Spanish property, and as much as they sell on daily basis, they are constantly being inundated with more people who get repossessed, and are forced out of their properties.

The strong Euro has also contributed to the large number of Costa Blanca repossessions and distressed sales. Many purchasers of Spanish properties were from Britain, who funded their mortgage, and their living expenses, through their savings or pension income in British pounds. These purchasers have seen their relative income fall by as much as 30% as the Pound weakened, and can now no longer afford to keep up the repayments.

As well as a high number of Costa Blanca repossessions, there are also an increasing number of distressed sales of properties in Spain. These are properties which have not yet been repossessed, but where the seller desperately needs a quick sale, and will be prepared to accept an offer significantly below the market value of the property. This means that it is possible to pick up a Spanish property bargain, perhaps with up to a 30% or 40% discount off the true market value.

The best bargains to be had are often apartments within new build complexes. These properties were often bought off plan, many by investors hoping to ‘flip’ the properties on, just before the property was finished, and to make a profit. However, as the credit crunch began to take its toll, these apartments no longer appeared to be the Spanish property bargain that they were advertised to be, and many investors were left with apartments that they had no chance of selling, and no finance to pay the mortgage. As a result, there are literally thousands of apartments, all subject to Costa Blanca repossession orders, waiting to be snapped up by savvy property investors.

All in all, there has never been a better time to invest in Spanish property, and in particular, in Costa Blanca repossessions. We would urge all prospective purchasers to come out to the Costa Blanca for a viewing trip, and to see as many properties as possible. This way you will be give yourselves a larger number of options, and to find yourself the perfect Spanish property bargain.