As leading estate agency Connells teams up with Mediterranean CAM, the property arm of CAM Bank in Spain, to market its portfolio of repossessed Spanish properties to UK buyers, we ask is now a good time to buy in Spain?
Owning a home in the sun is an aspiration for many Brits, whether they are looking to retire abroad, buy a holiday home or simply invest in overseas property. The Spanish market has traditionally been a target for these buyers, especially along the Spanish Costas, Balearics and Canary Islands which offer the weather and lifestyle that UK buyers are typically looking for when they decide to purchase a home in Spain.
Since the global recession, Spanish property prices have tumbled aided by the huge number of repossessed new and second hand homes now owned by the banks. These bank-owned properties present a fantastic opportunity for UK buyers. Not only can we bag ourselves a place in the sun for a fraction of its former price, banks like CAM are so keen to sell they are offering some fantastic incentives alongside these properties.
So is now a good time to buy in Spain? Buyers seem to think so with the Spanish housing market seeing a huge resurgence in UK buyers tempted by properties with discounts of up to 50 per cent. It seems that British buyers are out in force looking for their dream holiday home, to relocate or to retire abroad.
What’s on offer?
CAM Mediterranean has a wide range of properties available to UK buyers through Connells estate agency branches in the UK, from cosmopolitan city apartments to coastal villas and holiday complexes. Clearly there is a greater degree of interest from overseas buyers for properties on the Costas, but fortunately this is where many of Spain’s repossessions are located due to banks buying or bailing out struggling new build developments which were originally intended as holiday homes, as well as Spanish nationals having to give up their second homes on the coast during the recession.
These homes range in price, starting at €25,000 for an inland property up to around €1,000,000 at the top end of the market. The average price is €103,000. There is, however, evidence to suggest that the Spanish housing market, and in turn prices, may well be on the up. Indeed, according to the Spanish Property Registry, which records all new property deeds, residential property transactions rose by 13 per cent in Q3 of 2010 to 124,593 sales, with new build sales up 9 per cent and re-sales up 17 per cent. With this in mind, now may be a good time to get on the ladder in Spain, rather than waiting for predicted price increases.
The main reason repossessed properties present such good value to UK buyers at the current time is that banks like CAM have a lot of stock which they are committed to selling quickly. For example, the discount on CAM’s properties, an average of 30.1 per cent, represents the difference in the current asking price and an independent valuation carried out at the time the property was acquired or repossessed by the bank. This is why they are such a bargain.
Try before you buy
If low prices are not enough to tempt you to buy in Spain at the moment, some of the incentives offered on bank-owned and repossessed properties might well change your mind. CAM Mediterranean is giving UK buyers the unique opportunity to try the Spanish life before making a commitment to investing in a property. Its ‘rent to buy‘ scheme gives those looking for a taste of the Spanish life the opportunity to rent one of the homes on their portfolio for as little as €200 a month. Not only this but if participants decide they wish to buy the property within two years of taking on the tenancy, CAM will deduct all the rent payments made off the purchase price.
‘Rent to buy’ is the perfect way for those thinking of relocating or retiring abroad to see if living in Spain is for them.
Access to funding
Another key selling point of the Spanish homes CAM is offering access to a 90 per cent loan to value mortgage. This is available to buyers on properties up to €180,000, of which 92 per cent of the properties being marketed by Connells in the UK are, and a repayment term of up to 40 years.
This is a fantastic mortgage deal in the current market with the added peace of mind that you are dealing with a large and reputable financial institution. With so many scare stories in the media about illegal builds and land grab, security and peace of mind are as important to buyers as the property itself. By buying through a bank, doubts about the security of your investment are overcome since the bank will have done due diligence before taking on the property.
Most of CAM’s discounted Spanish properties can be viewed on Rightmove where buyers can also find details to contact Connells for information on the exclusive ‘rent to buy’ scheme and mortgage options.