Buying surge in Spanish property market
By Kevin Barnett, 08 Jun 2010
Spanish property buying interest has surged after the UK election and with the euro "bottomed" against the pound, prices are effectively the lowest for a decade – boosted by bank repossessions and uncertainties of the local economy.
British, Scandinavian and Russian buyers are now snapping up bargains in Costa Blanca, Costa Calida and Ibiza, many with 90% and 100% mortgages due to the excellent loan to value on beachside and golfside apartments.
In some areas, banks are reporting sales of 10 repossessed property bargains a day, while leading specialist website, PropertyInSpain.Net have seen inquiries soar close to the levels of the Spanish property boom years.
The Google-ranked number one specialist website for Spanish bank repossessions has just added a one-click search for the latest deals across Spain and introduced a cashback Fly to Buy programme to cope with demand. Buyers can browse the latest property deals in every Costa, Ibiza, Menorca and Mallorca and home in on the best mortgages.
They are encouraged to put in offers to secure their selected property, sign-up for the maximum mortgage and place their cash on deposit for higher interest rates than the Euro mortgage interest they would pay.
Property manager, Mar Walcott said:” We have villas and apartments that come with a guaranteed rental yield of 5% - twice the normal mortgage interest rate. As the rent is paid one year in advance, our buyers have enough to cover mortgage and other outgoings for the first three years.
“It almost like the boom years of Spanish property, but without the high prices fuelled by buyer demand and easy mortgages. Now the prices are near the level of 10 years ago and very affordable to northern European families.”
PropertyInSpain.Net say British buyers have been holding back on buying decisions because of the uncertainties of the UK economy, but the general election result “appears to have provided a new confidence from our registered buyers.”