Whilst experts are not in agreement as to whether Spanish property prices have reached the bottom of the cycle, there are certainly a great number of bargains to be snapped in Spain.
One such way of grabbing a real bargain is to consider a ‘distressed sale’.
Distressed Spanish sales at record levels
A ‘distressed sale’ is where a property is sold because a bank or other lender has repossessed the property. With prices in Spain falling significantly over recent years and ui nemployment in the country reaching unprecedented levels, there has been a stark increase in the number of properties being repossessed by banks.
A report released by Moody’s Investor Service has recently shown that a record number of homes in Spain were repossessed during the first quarter of this year. The research found that 27,561 repossession procedures were recorded in the first quarter of 2010 alone, up 59 per cent compared to the corresponding period in 2009.
Distressed properties offer an opportunity to buy a cheap Spanish home
A Place In The Sun reports that ‘it is estimated that the banks now have around £20 billion worth of Spanish properties on their books.’
Whilst this is bad news for the individuals involved and for the Spanish economy, distressed properties do offer a real opportunity for British buyers to snap up a Spanish home at a knockdown price.
Nick Marr from online property company HomesGoFast.com says: “Distressed properties offer bargain hunting Brits the ideal opportunity to pick up a great property in Spain at a terrific price. With banks desperate to get these properties off their books, it is possible to find a real steal in Spain at this time.”
