Spain is where banks are currently handing out 100% mortgages on property that is 60% below original values. Investors will now be in a position where they can put virtually no money down apart from a reservation deposit.
(PRWEB UK) 10 August 2012
Spain's second-biggest bank, the BBVA has €8.7bn of property on its books, which includes thousands of built and half-built residential properties (Source: Guardian). This creates a great opportunity for investors to take advantage of the low priced Spanish property in popular holiday resorts such as Marbella.
Loxley McKenzie, Managing Director of Colordarcy.com comments, “Spain is where banks are currently handing out 100% mortgages on property that is 60% below original values. Investors will now be in a position where they can put virtually no money down apart from a reservation deposit.”
Analysts at Colordarcy.com advise that this opportunity to invest in “no money down property” should not put investors off as it has done in the past. There is a valid reason for its reappearance in Spain.
McKenzie added, “Spanish banks that helped provide the finance for development projects in the boom years need at least some of their money back. With the economy yet to recover, Spain is reliant on encouraging more foreign investment in property to absorb the excess stock of high quality housing.
These two factors mean foreign investors have never had it so good when investing in Spanish Property.”
Much is written about the poor availability of finance to invest in property, according to Colordarcy, and it is all too often the case that a property investor will have the means to invest and still not qualify for buy to let finance.
In Spain at the moment, while restrictions on lending remain, on certain developments, banks are looking to reduce some of their losses and offload excess housing stock.
Another plus is the recent housing crash which has meant that 60% has been knocked off the value of Spanish property according to research from Colordarcy.com.
This means there are two factors at play which may appeal to investors:
availability of finance;
and properties available at substantial discounts.
With these two factors in mind investors can, according to McKenzie, “Invest in a property they know is unlikely to end up being worth less than they have invested and just as importantly, they will know that the bank will actually lend most of the money to do it.”
Notes to the editor:
Colordarcy is a leading property investment company that specialises in finding positive cash flow investment properties worldwide. Colordarcy investment property portfolio includes some of the best properties for sale in Brazil, Florida, Turkey and the United Kingdom.
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