Bargain Property Javea
Since the recession hit we have seen a significant price correction on properties for sale in Javea and as a consequence there are many Javea property bargains around.
Many have been for sale for some time and not that desirable, so no wonder they have never sold. If they are mortgaged and the owners cannot afford to service their debt anymore, it's inevitable that the lending bank will repossess the property at some stage, usually when all attempts to sell it fail. As a last resort the vendors will try and sell it at a very low price to at least clear the debt and, if appropriate, end up with something back in their pocket. If this fails a repossession is almost inevitable and subject to the price it was being sold for may not even be worth the outstanding debt on it. This situation usually occurs when a property is very undesirable. It's not even worth the effort to renovate or knock down and re-build due to the bad plot location, poor orientation for the sun, no views, bad road noise, thick forest, ugly pylons, buzzing sub stations, terrible access etc. The list goes on but hopefully will help you understand some of the pitfalls with so called bank repossessions and bargain property for sale in Javea!
Bargain property available via Bank repossessions in Javea
For a bank to repossess the property it will cost many thousands due to the legal jargon and bureaucracy to acquire it through the courts. Subject to the price it was being sold for it means it may cost more to buy it once the banks repossess it as the banks are reluctant to sell it for less than book value i.e. outstanding mortgage plus cost of repossession as it would show a loss on their balance sheet. Then you have the re-connection charges for all the services together with all the inspections and certificates to go with the new contracts amounting to thousands as well!
Usually the banks will sit on this so called asset for years before they decide or, more recently, be forced by the government to make some provisions/allowances for some write downs on it's bad assets. Mainly covering the losses for the many bankrupt developers with hundreds of un sold properties. Most banks will keep showing their bank property repossessions as an asset on their balance sheet but one wonders what the true value actually is? Time will tell.
Due to the crisis one would think that there should be hundreds of property repossessions. Well there are actually thousands across the whole of Spain. There just aren't many good ones to view in Javea or Moraira.
Our Experience with bargain property in Javea
In our experience there are hardly any property repossessions worth buying in these areas especially from a bank, however there are some good distressed sales and genuine property bargains in Javea to be had if you look around or shop smart and use a Javea property finder like us!
One of the main reasons why we don't seem to have had many quality properties that are repossessed is because they actually sell first! Failing that and being such a wonderful coastline the vendors rent them out during the summer to cover their cost. Average rental profits are circa 20,000 euros for a nice 3-4 bed villa "after cost" over 12 weeks. Many fetch far more and some much less but for a nice 3-4 bed Javea property worth say 500k it's a reasonable figure to work on.
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