bank bailout could end the Spanish property giveaway
Murcia, Spain (PRWEB) September 09, 2012
In the last two years the banks in Spain have built up an efficient system of selling properties through international agent such as Villa Cashback who specialise in the Polaris World resorts in Murcia. In many areas in Spain the banks represent over 90% of the property market selling at prices that resellers or developers simply can’t afford to drop to.
“The competition between banks and their urgency to sell quickly has led to a tremendous choice of bargains for our customers” says Paul Williams MD of Villa Cashback. “Our fear is that amalgamating the unsold properties into one giant state run monolith that intends to make a profit on property sales is going to lessen the urgency to sell, reduce competition and consumer choice and drive up prices artificially.”
Competing between themselves the banks are in a race to continually drop prices and offer better mortgage terms for the resort properties on offer in the coastal regions. These locations have seen a surge in UK and overseas buyers in the last few years as banks have cut prices to levels that could not have been imagined before the credit crisis. It has created a perfect scenario with many buyers picking up properties at one third of the price they were contemplating for the same property five years ago.
The Spanish government recently announced its intention to make a profit for the Spanish taxpayer from the operations of the bad bank “Banco Malo” over the next 10-15 years. With details of the bailout still unclear many have questioned the willingness of the banks to sell out to the government at even lower prices than they sell currently. With the Spanish government promising the EU they can solve the problem in order to obtain €100 billion in bailout funds it is likely to be the banks that hold the cards when it comes to negotiating prices for their property portfolios.
“If the government sells at below the current market price the banks are selling at they make a loss. This isn’t going to happen as the taxpayer has been promised a profit. It’s much easier to kick the problem into the long grass and sit on the properties at inflated prices beyond the next election in five years” says Williams. “This is going to lead to reduced choice and an end to the era of the mega bargain from the banks.”
Anyone looking to buy a bank repossession in Spain is advised to act sooner rather than later as the government intends to have the bad bank in place by the end of November 2012 although many analysts see this as an optimistic timescale. Prospective investors can visit http://www.polarisworld.info for properties on the Polaris World resorts in Murcia or http://www.bankrepossessionspain.com for details on bank repossessions in Spain. Help and advice is on hand from a team of Spanish property specialists at Villa Cashback in the UK on + 44 (0)208 429 7115.