Chartered Surveyors

Spanish Bank Repossession Properties cost 20% more than private sales

By January 8, 2014 No Comments

It’s what we’ve been saying for months. Just because there is a 100% mortgage, people have been buying at any price and not researching the market. And after they buy and want to sell again, they will have to recover the buying and selling costs to break even, which costs can easily total 20%. Oh yes, and because they cannot offer a 100% mortgage they will have to offer the property at a substantial discount to attract cash or max. 70% mortgage borrowers. That discount will have to be at least another 20%. So the instant they have bought from the bank they are in negative equity of 40% of the price they paid. Truly in these instances the buyer is a victim of a bank and not a customer!

Spanish Bank Repossession Properties