Many buyers are attracted by the idea and think that making the decision to buy a bank repossessed property is a good way to get onto the property ladder in Marbella, but this is something that should be approached with extreme caution. Firstly the majority of stock on the bank’s books is not particularly attractive and usually not worth a second look!

Most Spanish banks now have a ‘real estate’ division on their websites, so feel free to take a look and see how poor the standard is. Secondly, remember that you are never going to be in possession of true and ‘unbiased’ facts from the Bank – the one entity that you really want to be sure you can rely on! Banks are no doubt manipulating the real number of properties being repossessed in order to keep their balance sheets looking right.

In the past, they would begin proceedings against an owner after just 3 months of arrears and yet, over the last year or so, many owners have gotten away with 12 or 24 months before being repossessed. This way the Banks can actually massage the figures and hold their position on prices. Back in 2009 when things were getting rough, the banks were only offering around 20% discounts, and it was only later in 2011 that more attractive discounts appeared.

One would expect to be discussing 40-50% discounts for it to be worthwhile. Of course, the banks shot themselves in the foot during the boom years, with the exaggerated valuations that they encouraged and often in excess of 100% mortgages, resulting in countless negative-equity situations.

So yes, buy a bank repossessed property in Marbella.  Some banks are even offering 100% mortgages to sweeten the deal, but buyers must be certain that they are actually paying no more than the true market price. Always bear in mind that if you’re looking for a deal on a property purchase in or around Marbella, you should still look at the resales market, negotiate hard on price and shop around for a good mortgage product.

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Buy property Marbella resource category

It can be said that in these times it is definitely a buyers market. Wealthy individuals obviously have better access to credit and are less reliance on the banks, and it is this group of people who are seeking out high quality property in the best locations. Because of the correction in the housing market in areas such as Marbella there is still opportunity for certain types of property.

It seems that depending on the circumstances of the seller there are some substantial discounts over the original asking price to be had. However, there is evidence to suggest that around 30% of sellers don’t the to drop the price at all. For those with the available credit the next couple of years with present and excellent time to buy a property in Marbella for investment.

So what types of property aren’t selling?
It may sound obvious, but poor quality builds in densely populated area’s are best avoided. Location is of critical importance and unfinished property should be given a wide berth, as demand for this kind of investment will remain poor for the foreseeable future.

The best advice here is to exercise patience and look before you leap. The property market always seems to bounce back once growth is restored and the availability of land increases. If you do decide to invest, be aware that immediate returns are unlikely.

So where are the opportunities?
You should look for properties that are well built in good locations. Buying property close to amenities and facilities are always going to be more valuable than those out-of-town. Things to look for are well-kept streets and the immediate surrounding areas, it doesn’t take a genius to spot areas which are in a state of decline or poorly maintained.

Although there is a lot of property for sale in Marbella there is no need to rush into anything. Allow yourself plenty of time to surface the best and highest quality property even in the event that it may cost you a little more, it will be worth it in the long run.

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Buy property Marbella resource category

Some currency exchange experts are reporting that transactions for holiday homes in Spain have increased by 100% over the summer period of 2011. It hardly seems likely that we are returning to the property boom of the 1990s, however, having said that buying a property abroad is still fraught with danger if you don’t know what you’re doing.

This isn’t going to be a long blog post and if you don’t read any further than this paragraph, remember one thing:- Instruct a specialist and don’t try doing it yourself. Why? Because there is a really big chance that you will come unstuck.

It goes without saying that in this economy finding a mortgage is tricky, but there is evidence to suggest that Spanish and French banks will still lend to those with a substantial deposit. For instance, a figure of 15 or 20% seems to be useful as an acceptable guide. Proof of income and full exposure and liabilities are going to have to be disclosed as well as the aforementioned hefty deposits. It is also likely that you will need to have a great deal of equity in the family home to support any lending requests.

Example mortgage rates in European countries such as France and Spain are typically variable around 3 to 4%. However you can expect these rates to be negotiated depending on the amount of equity available for the proposed purchase.

For those choosing loans paid back in Euros, British buyers should be aware of any potential currency risks if their income is paid in £sterling. Many of these types of mortgages have variable rates applied so it is also important to factor in repayment rates that could vary significantly.