When will Spanish banks the dump their troubled property portfolios?

[totallyproperty]

There has been intense speculation over the last few months that Spanish banks are on the verge of dumping their troubled real estate portfolios. In many ways this has held back the Spanish property market in the short-term but are we potentially on the verge of a major change in tactics by Spanish banks?

 

[RainerR]

That would make the hundreds of thousands of properties even more attractive!
I can't wait.

 

[iceton]

Ive travelled to Spain twice in the past three months looking for a place in Marbella/Malaga area, I was offered so many bank owned properties by a multitude of agents that my head was spinning, one thing was obvious though, the best locations and " bargains" are all very quickly moved onto associates, relatives, or those who cross the palms with silver.

 

[totallyproperty]

Would you be a general buyer of Spanish property now or wait until the banks have dumped the rump of what they have left?

 

[iceton]

We have been looking for a place to use as a semi retirement home rather than investment so are actively searching, the vast majority of " Bargains" are all way inland or in remote beach locations so we are more concerned about getting a front line beach view in a location very close ( 5 mins walk) to prom, restraunts ,bars etc so this obviously greatly limits our options, there are some very good buys for those that just want investment/rental props though.

 

[RainerR]

Availability

Having been looking around, I can honestly say that there are beautiful properties available at excellent locations. Certainly not 'leftovers' from the banks.
Tens of thousands of people have taken their property off the market simply because they can't sell without ending up with a negative balance. Or to let their apartment become a 'lemon'. So Bank-portfolios and Agent-portfolios is not all there is ....
Unless you intend to stay at least 10 years at the same location (first buyers, retired people, etc) there is still a great advantage to renting over buying!

Would you be a general buyer of Spanish property now or wait until the banks have dumped the rump of what they have left?

 

[totallyproperty]

I suppose the criteria and timescale is slightly different if you are looking to live in the property as opposed to investing for a return asap. Personally I think the Spanish market is starting to look good value.

 

[RainerR]

Oh, I totally agree. Especially when you're going to live their - a 'new' first house.
As a money maker, however, I don't expect much of a revenue.
There's simply too much on the market. Most people try and rent it out to cover e.g. their HOA expenses, insurance and general maintance, and are often working on a 'cost price' basis. Why buy when you can rent for EUR 400 or 500 a month?
And imagine the freedom.

 

[santjust]

Sant Just View

Bargains are already in the market, also on Premium locations. The most important thing you need to take into account is that they generally do not reach the public, as they are snatched away quickly. It is very hard to find them on property pages.

Banks advice prominent agents, as they know they have the clients and the capacity to seal a quick deal. Some of them buy it from the banks and then resell them.

Large projects are sold to big investors at bargain prices. Then the buyer sells it on the normal property market.

The best way is to have a good agent to keep their eyes open. They normally have the capacity to tell the bank to hold a property for their clients.

No direct dumping will happen. Banks have given mortgages, which are being paid. They will not risk too lose a good mortgage payer by dumping products. Can you imagine having bought a house and paid a high price and you are paying your mortgage religiously? Now a bank dumps the house next door at half the price. That will produce good payers to turn into bad payers.

Dumping is happening, but indirectly. Not by banks only, also property owners, investors and so on. It Is a good time to buy.