Is It Worth Buying a Flat Embargoed? The large number of flats has been awarded part of inventory of apartments and fill the portfolios of financial institutions.
The balances of these are pretty full, so are banks and the urgent need to give out in the real estate market as quickly as possible. Also, the increased supply is not negligible.
"Currently, there must be some 100,000 flats
seized for sale within the entire stock in Spain, which can reach more than a million unsold empty buildings, "says Fernando Acuña, director of property portal pisosembargados.com. It is envisaged that this portfolio in the hands of the banks continue to rise, as there is more to see the rise of foreclosures recorded in both 2009 and 2010, which is not expected to moderate during 2011 with the imminent rise interest rates and tighter financing.
More room for negotiation
If the whole property free offer, customers do not find anything that meets all requirements you are looking for, you may be best to ask for this type of housing than can be allocated more funding and better facilities for margin trading. Or can it be reversed, starting first by them.
"Buy an apartment, it is much better, because for starters, are 20% cheaper than those of individuals," says the director of 'site' pisosembargados.com. Moreover, advertising of many banks and ensures 100% financing for banks owned entities. "Most banks can sell their flats offer a loan with an interest rate ranging between 0.50% and 0.90% over what marks the Euribor, no fees and no cancellation fee, "said Acuña.
The simple condition of a property owned by a bank makes it easy to negotiate the terms of the mortgage. So, buyers will deal with real estate subsidiaries of the same should have that in mind before signing a loan. "The overall trend in prices will be a slight drop in part by the need for institutions to dispose of these properties," predicts Bonsoms Carlos Ferrer, director of Jones Lang LaSalle Residential. "It's harder to fall floors that are held by the promoters, because they are more difficult to find funding and less room to lower them. "
Depending also on the status of the property, the chances of better performance will be more limited or not. A very important factor is the geographical area where you want to purchase property. In areas where there is a significant oversupply of homes, the buyer will be much easier to lower the price. On the contrary, if the location where you want to buy is in high demand, achieve lower prices will be more difficult. "The price in Madrid and Barcelona can vary by almost 10%. In hardest hit areas, Alicante and Murcia and the cost can be lowered to reach 20% or 25%, "says the director of pisosembargados.com. Buy it at auction
information exists to acquire a property at auction, when the truth is not very abundant. In fact, the possibility of buying one of these events will not be going through your head to the buyer on the street. "There is an awareness of auction in this country," said Ferrer-Bonsoms, "the market conditions should change a bit and prices should bottom out." "The auction market in Spain is not working as well as they could," says Acuña for their part, "what makes people is purchased directly from banks or real estate portals where they can see the different banks offer and is not aware that you can access to foreclosed homes. "
It is not only a lack of knowledge of this medium, according to Jaime Alvarez, director of the journal Public Auction 'and a PhD in Financial Economics at the Universidad Complutense de Madrid, is also caused by legal complications involving the laws system operating in this auction: the Civil Procedure Act and the Mortgage Law. "Most damaging of the Mortgage Act is that it sets out to the floor auction
the amount that was agreed by the parties (buyer and seller) when you signed the deed of constitution of mortgages, ie they are high values. Moreover, the Civil Procedure Law determines a percentage to ensure the allocation by auction and they determine a value that is out of the market in most cases. "
"If you decide to buy the flat at auction, be careful because you can take a shock. It is necessary that the buyer has specialized legal advice in the mortgage world and its procedures, "says the director of the journal Public Auction." It is for these issues that sometimes it's uncomfortable and less attractive to purchase property at auction. Therefore, most of them have little inflow and are deserted. Moreover, in these cases the same law stipulates that the bank will have the right to keep the property for 50% of the type of auction or the value of the debt. In most real estate value is lower and the remaining amount it still claiming the lien.
measures Bank of Spain, enough?
The latest measures launched by the Bank of Spain in order to pressure the bank and it sells the foreclosed homes that the bank has made to provision for real estate assets by 30% after two years of them owned.
However, although these legislative frameworks have been tightened, many banks have the financial strength to not giving it or depreciate too. "As you move forward in time the bank determines that such provisions will cause the authorities have increased pressure, but a priori does not generate the pressure that we might think," said Professor Jaime Alvarez.
"I think the estimated effect of the measures of the central bank is overrated and the lender can carry the burden. Some of these institutions are strong enough to not miss anything, "except for some savings," and I do not have a disproportionate impact today, " Alvarez added.
In fact, banks increasingly try to sell their flats
facilitating aspects and conditions of the mortgage loans. The lack of credit institutions, escalating interest rates, rising unemployment, stagnant economic situation and the ineffectiveness of government action leading to the 'brick' towards a gradual depreciation of housing prices . However, the depreciation of the story has not been as expected and in some cases still need something more to sell at prices that individuals buy. It is best to seek alternatives and awarded the floors may present more opportunities for better terms. C.GARCIA-PANDO
via:
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