Is it too late to invest in bank repossessions properties in Spain?

Less hassle and a nice return?

Many of our readers told us that, yes, you get a return with “buy to let” properties in Spain but you have to manage your property and all the issues going with it, so they asked us: are you aware of any product to get “smart exposure” to the real estate market in Spain? Many others asked us, how can I invest in bank-repossessed properties in Spain?

We found a fund investing only in bank-repossessed properties in Spain and checked it for ourselves so that’s why we wanted to share the results of our work with you.

1. 1. Why did we like the fund and this opportunity?

      1. The management team has 10 years of experience and a track record
      2. Competitive edge: Thanks to their huge geolocalized database of prices’ history with properties’ characteristics: the ones they bought and sold, all the bank properties sold for the last years, all the properties sitting on the market… They have a very accurate idea of what is the “fair” price of any property when bidding for a portfolio. Appraisal work and an on-site visit will do the rest of the job.
      3. The Spanish legal system: “creates” this situation and doesn’t give a lot of choices to the Spanish banks for managing their repossessed properties while keeping a good image.
      4. It is very costly for banks to hold properties on their balance sheet: both in terms of solvency ratio and yearly costs (tax, insurance, community costs, maintenance costs,…)
      5. Opportunity should stay for many years: there are not enough players to dry up properties from the Spanish banks’ balance sheets. Do you remember, it all started in 2008!
      6. Clear investment process: this is a very data-driven and systematic investment approach with many verification steps.
      7. Allows to buy real estate on the Spanish market “at a discount”. As all properties are bought with a big discount, the risk (if any) to the real estate market prices is much lower than any real estate investment: whenever a property is sold, the discount is ‘locked” for the investor which reduces his future risk even more, should the real estate market go down at any time in the future.
      8. Last but not least, no hassle as you would have with any direct real estate investment anywhere in the world.

       

      Of course, as it is a fund, investors should check their tax situation for any investment.

      As you could guess, this kind of fund is for well-informed (and wealthy) investors able to manage and diversify their risks. This is not a recommendation to invest or any advice regarding this investment opportunity. That is why we don’t advertise the name of the company managing this fund but if you want to go further with your due diligence, you can contact them by filling out the form at the end of the report.

       

      Here is what we found out:

1. A fund buying bank repossessions directly from Spanish banks

    

   The fund pursues a unique investment strategy of recurrently:

   1. Acquiring,
   2. repossessing and
   3. reselling residential properties in well-populated Spanish regions.

    

   The properties may be subject to adverse possession or “Squatters”, which is resolved by reaching an amicable financial settlement with the occupant. If this doesn’t work, the fund will start a legal procedure and this will take a maximum of 3 years to get full ownership. 90% of the time the fund will get an agreement with the current squatters.

    

   The Fund will cherry-pick properties among portfolios of occupied residential assets offered by financial institutions.

   

   Example of a Bank repossession in Spain in the portfolio

    

   An institutional manager based in Madrid

   The fund manager is active for more than 10 years in this market.

   Of course, as the fund manager is well known in Spain, they get portfolios all the time from the biggest banks in Spain.

   The assets are only offered to a select group of reputable buyers, like the institutional manager managing the fund, due to the complex nature of solving potential adverse possession situations.

    

   They told us that unique sourcing and strict discipline enables the Fund to buy at very deep discounts vs the current market price as they have to get the property back to the market (before tax expenses), but yes that’s why there is a nice margin left for the buyer, not bad!

    

   The Fund Manager will partner with the leading Spanish-occupied real estate specialist which employs a socially responsible repossession procedure based on mutual agreement Ethical conduct, compliance and strict adherence to legislation are essential.

   Financial settlement occupants are offered financial compensation in return for vacating the property voluntarily.

    

   The Luxembourg fund will reinvest in new properties continuously

   The fund has an open-ended structure, which means that it will stay open as long as the opportunity is present for the fund manager, and is full AIFM regulated and registered in Luxembourg as a “Reserved Alternative Investment Fund” (RAIF) which allows the fund to invest directly in real estate.

    

   The proceeds from sales will be redeployed to buy new portfolios.

    

   The average holding period of a property is 18 months.

    

   Win-win for all the parties involved:

   • banks can offload risk assets sooner,
   • occupants agree with the manager to relocate thanks to a mutual agreement.

    

   Target Net Return

    

   The open-ended fund was launched in 2021 and targets annual net returns of 8.5% to 11% without leverage in a stagnating housing market. Over time the fund may use limited leverage for enhancing returns to 11% -14%.

   The fund manager based in Madrid has been running these strategies since 2011, which is why they could give return targets.

   High-demand area’s

   The fund will exclusively focus on well-populated area’s which have sufficient transaction volume i.e. no rural area’s. A majority of assets will be located in major cities focused on Spanish citizens, not tourists.

    

   Buffers against capital losses

   The fund is buying at very deep discounts, so even after accounting for all costs and taxes, post-COVID real estate prices would have to decline by more than 12% to make a small capital loss, according to the manager. In addition, the Fund is spreading asset purchases over time making it less sensitive to price shocks compared to closed-end real estate funds.

   Unique proprietary technology

   Each property is appraised by a proprietary big data valuation software, which tracks key features (e.g. price, location, surface, floor, amenities,…) of 25mm references gathered over many years. Each appraisal is also supported by a dedicated team of analysts. In addition, a third party will be appointed to verify the value of the holdings.

   Strategy with a track record

   The fund manager told us that they did successfully repossessed and resold over 2,500 assets since 2011. Over 90% of historical property portfolios were eventually sold at a profit that was in line with or above the Fund’s target return.

    

   Ethical & socially responsible procedures

   Based on reaching a voluntary agreement with occupant(s). No occupant is ever threatened or evicted by any other means except those explicitly approved by banks and the law.

    

   High barriers to entry

   This is a niche strategy that is difficult to copy, banks are only willing to sell large portfolios to a legitimate buyer with national coverage who uphold strong compliance standards.

    

   Limited correlation to financial markets

   They described this strategy as an alternative investment strategy focused on existing residential real estate (no development).

    

   A specific opportunity existing only in Spain

   Due to inertia of legal procedures, the culture of ‘occupants’ and the recovery of a major real estate crisis.

   Since the Global Financial Crisis and the ensuing real estate crisis in Spain, the national and regional lenders have unwillingly become large real estate owners.

    

   Unfavourable impact on bank balances sheets

   Not only do banks lack the expertise and staff to properly manage real estate, but the assets also have an unfavourable impact on their minimum capital requirements.

    

   Many properties have sat idle on banks balance sheets for years, and in the meantime have become occupied by people that have gained unlawful entry to the property and now live in it for free.

    

   In Spain, it may take years for owners to obtain court approval to evict unauthorised occupants. In 2018 it became possible for natural persons to pursue an “express judicial procedure”, a procedure which can still take months to evict occupants out of their own homes, but this is not the case for owners that are legal entities as banks real estate funds. Despite being very slow, the Spanish judicial system eventually favours the rightful owner.

    

   Spanish banks are still offloading legacy real estate portfolios from the 2008 crisis, as well as annually foreclosing over 25 000 assets based on police data, at least 87 000 homes are subject to adverse possession, although some consultants estimate the real number closer to 100 000.

   

   Another example of a Spanish bank repossessed property

    

    

2. What is the investment process?

   There are 4 steps:

   1. Appraisal

   The local partner, thanks to reputation and network, has the opportunity to bid on and cherry-pick from hundreds of assets per week from different institutional sellers.

   Each asset is appraised by proprietary software that sources data from 20 million assets This value is the market value or minimum selling target, under normal conditions.

   Each appraisal is verified by a team of professionals.

    

   2. Acquisition

   Next, they apply a strong discount on top of accounting for fees for acquisition, repossession and sale, which leaves a substantial profit margin to the fund.

   The local partner is bidding on assets all year round, negotiations with banks may take many months due to aggressive bidding (only a small share of bids are ever accepted). The Fund will never acquire portfolio’s below its ROI threshold In addition we may order a third party appraisal of all the individual assets in a portfolio.

    

   3. Repossession

   Each occupied asset is visited by a trained in-house staff member. After identifying the occupant(s), the staff member starts the negotiation.

   The selling bank has already initiated a legal eviction process, so the occupant is often more inclined to accept vacating the property rather than risk contact with law enforcement.

   If the negotiation doesn’t work (ca 10% of cases) the fund will pursue judicial track

    

   4. Sale

   The asset is cleaned, and secured (new lock, fortified doors, alarm) as well as lightly refurbished where necessary.

   The fund hires a network of local real estate agents to sell and promote the repossessed assets.

   Some assets will already be sold 4 months after purchase, 50 within 16 months and 80 within 2 years

   

   Another building of a Spanish bank repossession from the portfolio

    

3. More on Bank Repossessions in Spain

   90% of adverse possession occupancies are resolved through mutual agreement (outside of court)

    

   1. Legal procedure

   Usually, a legal eviction procedure is initiated before the acquisition (by banks). In Spain however, this can be a very cumbersome process, taking up to several years. This track is nevertheless pursued to have some leverage in the negotiation process. All processes strictly comply with legal regulations and are approved by the sellers

   2. Visit Property

   Once the judicial procedure has been initiated, the occupant is notified and visited to explain the situation. Not used to this personal approach, some occupants may already leave. Most leave after negotiating compensation for foregoing a few months of rent (as they know they will otherwise be evicted at some point).

    

   3. Negotiate repossession

   More than 90 of the assets are repossessed through mutual agreement, the rest via legal procedures. Banks and funds are unable to pursue this strategy due to the risk of attracting even more occupants to all their empty assets.

   Hundred of the negotiators are proprietary staff (none outsourced), specialized in repossessing occupied assets in Spain.

    

   4. Security and refurbishment

   Once the property is vacated, it is professionally cleaned, and a fortified door, new lock and alarm system are put in place (to avoid people reoccupying) If needed, some basic painting refurbishment is done, however, the apartments are typically sold in their existing condition (at small discounts compared to fully refurbished or new apartments)

    

4. Attractive economics

   Thanks to their sourcing and in-depth experience the Fund expects to perform above average compared to most real estate funds out there.

   • The Fund’s asset manager has developed a proprietary underwriting software including over 26 million Spanish real estate references and can make 50 000 daily valuations Parameters for valuation include surface, price, m² geolocation, cadastral reference, building, elevator/garage, time in the market, etc
   • AI algorithms are implemented in the decision-making process, however, all valuations are corroborated by at least 2 in-house analysts.
   • Target market price as calculated by in-house software valuation analysts The asset is compared to similar assets (based on the above parameters) on the market and sold within the last months, in a small radius.
   • Purchase price incl taxes and origination fees typically 35% to 40% below the target market price to account for costs and base case profit margin (per portfolio) of 25%.
   • Expected costs include annual property taxes, community fees, repossession charges, refurbishment, alarm, lock and intermediaries (real estate agents).
   • ‘Base case’ profit margin is expected to earn 25% to 27% base case on the total investment (cost transfer tax/stamp duty) at SPV level over 2 to 3 years.
   • Target market price as calculated by in-house software valuation analysts The asset is compared to similar assets (based on the above parameters) on the market and sold within the last months, in a small radius.
   • Excess margin the asset is usually put on the market for 150 of the target price (or 230 of investment) and lowered every 2 to 4 weeks.
   • Historically 90 of all portfolios repossessed by the Fund’s asset manager were sold above base case ROIs (and aggregated target prices).

    

   Of course, don’t underestimate potential risks for any (real estate) investment.

   

   Most of the time, even if bank repossessions are occupied in Spain, they are in a good state.

    

5. Here are some of the risks we identified with the fund strategy

   • Liquidity: Repossessing some assets in the portfolio may take longer than expected, thereby depressing IRR’s.
   • COVID 19 fallout (or further crisis): Increasing public debt and unemployment may negatively impact demand for low-income housing.
   • Valuation risk: Risk of overpaying for certain portfolio assets or the condition of the asset appears to be worse than assumed.
   • Reputation: Repossessing assets subject to adverse possession is a delicate matter Unfair evictions may lead to reputational damage for anyone involved.
   • Refurbishment: Although the assets are expected to be in subpar condition, some assets may be in a poorer state than expected.

    

6. Do you want to know more?

   Ask for more due diligence from the manager by sending your contact details directly to the manager. As you understood our disclaimer at the start of this article, every investor is responsible for his own risks and HTBIS does not promote or advise to invest in any specific product. We accept to put you in direct contact with the fund manager by filling this form so we don’t make any advertising for the company. Don’t hesitate to tell them that you read it on HTBIS, they will surely answer your questions with even more details as they did with us. That is how we create value for our readers.

If you want to find a bank property, here is where you should start: Register to our exclusive Spanish bank properties listings and read: Where are the Spanish bank properties for sale?

Remember, the risks are higher if you buy a bank property from a bank. In Spain, furthermore, we would always advise you to work with a lawyer when you buy a property. He will make sure everything is fine. We developed privileged relationships with local lawyers very active with foreigners, don’t hesitate to ask us for a real estate lawyer anywhere in Spain from our network in a specific region. A technical survey of your Spanish property is strongly advised as it is a bank property.

Before buying in any region, have a quick look at all our research on the top 20 Spanish Cities: Everything you ever wanted to know about the top 20 Spanish Cities real estate markets

Looking for an expert in Spain: Lawyer, Architect, Property Hunter, Mortgage? Ask us directly!

Stéphane

Senior Analyst and Strategist at HTBIS

Check the full HTBIS team here

Our FAQ on Bank repossessions in Spain

The post Are bank repossessions in Spain an attractive investment opportunity? appeared first on How to buy in Spain.

A response to your requests

Discover the untapped potential of Bank Repossessions in Spain

As the real estate market continues to evolve, new and exciting investment opportunities consistently arise. Bank repossessions in Spain stand out as one of these compelling avenues, presenting the potential for high returns and the promise of lucrative investment journeys.

Over the years, we’ve listened closely to our client’s interests and requests. We’ve taken note of your growing curiosity in the field of bank repossessions and the substantial potential they hold. It’s because of your interest that we’ve decided to delve deeper into this market segment, capitalizing on our position as a leading figure in the Spanish real estate market.

We can provide our clients with unparalleled access to an extensive array of bank properties. This includes properties directly repossessed by banks, as well as a portfolio of properties acquired by investment funds. These funds have directly purchased significant portfolios from banks, as Spanish banks needed to pare down their balance sheets.

This area of the market is often overlooked by many investors, yet it is one we have both the proficiency and exclusive access to explore. Our experience and far-reaching industry connections enable us to bring unique investment opportunities to you, ones that are often hidden from the public eye. By harnessing these benefits, we are committed to helping you discover your perfect property investment in Spain, primed for profitability and growth.

Too busy? Here is our quick-read summary:

Bank repossessions in Spain, our 2 minutes video

Now, let’s delve into the subject of bank repossessions in Spain.

Unveiling the realm of Bank Repossessions in Spain

Bank repossessions, also known as distressed sales, are properties that banks seize due to mortgage defaults. It’s a regrettable circumstance for the original property owners but an undeniable investment opportunity for the insightful investor. The reason? These properties are often priced below market value, allowing investors to buy at a lower cost and sell at a higher price when the market bounces back.

Spain, with its enchanting landscapes, rich history, and thriving tourist industry, presents a fertile ground for such investments. Its appealing lifestyle and diverse property market make it a favourite destination for real estate investors worldwide.

Malaga, Spain: High-angle view of the cathedral in the historic city centre.

Why is there such an opportunity in Spain with Spanish bank repossessions?

The realm of bank properties in Spain offers a considerable opportunity for prospective investors. A staggering number of these properties – around 600,000 according to some estimates – currently reside on the balance sheets of Spanish banks. The proliferation of bank properties stems back to the financial crisis of 2008. Amid economic instability and rising unemployment, many property owners defaulted on their mortgages, leading banks to repossess a significant number of homes. However, banks are not designed to manage real estate portfolios over the long term. They are more inclined towards liquid assets, and the cost of holding onto these properties can be considerable. Consequently, Spanish banks are highly motivated to sell these properties, often at below-market prices, to clear them off their books. This scenario creates a rich landscape of investment opportunities for savvy investors, with a vast array of properties available at potentially bargain prices.

Nerja, Spain: People walking in a charming narrow shopping street in the city centre.

Why invest in Bank Repossessions in Spain?

The combination of below-market-value prices, an appreciating property market, and the country’s inherent appeal make Spanish bank repossessions a potentially profitable venture.

Firstly, the lower initial investment cost allows for higher returns on investment (ROI). Additionally, given Spain’s resilient real estate market, there’s a higher probability of the property’s value appreciating over time, leading to significant capital gains.

Moreover, Spain’s vibrant tourist sector means there’s a robust rental market. As an investor, you can potentially profit from short-term holiday lets or long-term rental income, especially in popular tourist regions like Costa del Sol, Costa Blanca, or the Balearic and Canary Islands.

Exclusive access to Spanish Bank Repossessions

Getting access to these bank repossessions is not always straightforward. Without the right contacts and knowledge, it can be challenging to navigate the Spanish property market and uncover these hidden gems. That’s where we come in.

We are excited to announce our exclusive mailing list, designed specifically to provide privileged access to the finest selection of bank-repossessed properties in Spain. As a member of this list, you’ll be the first to hear about the latest bank repossessions, offering you a head start in your investment journey.

Our seasoned team of real estate experts and local insiders will hand-pick the best bank-repossessed properties and deliver them directly to your inbox. The properties we select are not just ordinary houses; they are potential wealth builders, poised to deliver profitable returns.

View of Spanish village with white houses, valley, summer

The main characteristics of Spanish bank properties

1. Need for Renovation: These properties often require some level of renovation or refurbishment, given that previous owners might have neglected maintenance due to financial issues. The need for renovation can range from minor cosmetic updates to significant structural repairs, depending on the property’s condition when it was repossessed.
2. Not High-End: Bank-repossessed properties in Spain are typically not on the high end of the market. They usually belong to individuals who defaulted on their mortgage payments, and these tend to be more affordable, modest homes rather than luxury villas or high-end apartments.
3. Budget: Bank repossessions can offer excellent value for money. The starting price for some of these properties can be as low as 30,000 euros. However, the average price point for a bank-repossessed property in Spain usually hovers around 100,000 euros. This budget can fluctuate depending on the location, size, condition of the property, and the extent of required renovations.
4. Location: Bank-repossessed properties are often located inland, in smaller towns or villages, rather than in major urban centers or coastal tourist hotspots. This is largely due to the lower property prices in these areas, which makes them more likely to be the type of property bought with a mortgage that eventually gets defaulted on.
5. Community Living: Given their more rural locations, many of these properties provide an opportunity to experience community-oriented living. Spanish villages are known for their close-knit communities and slower pace of life, which can be an attractive prospect for those looking for a quieter, more peaceful lifestyle or an authentic Spanish living experience.
6. Potential for Profit: Despite some of the drawbacks like renovation needs and less glamorous locations, these properties present excellent potential for profit. A bank-repossessed property purchased at a significantly lower market value price, even after the cost of renovation, can still provide a considerable return on investment, especially if the property market appreciates.

It’s essential to do thorough research and consider employing a professional for advice when buying bank-repossessed properties. If approached correctly, these properties can present a fantastic opportunity for investors seeking excellent value and potential returns in the Spanish property market.

Benefits of our mailing list

By joining our mailing list, you’ll receive:

1. Early Access: Be the first to learn about new bank-repossessed properties on the market.
2. Exclusive Listings: Access listings not available to the general public.
3. Expert Advice: Benefit from our team’s extensive knowledge and experience in the Spanish real estate market.
4. Detailed Information: Receive comprehensive property details, including pricing, location, and potential ROI.

Ready to discover the potential of Bank Repossessions in Spain?

Bank repossessions in Spain offer unique opportunities for the shrewd investor, promising potential for lucrative returns. With our exclusive mailing list, you can effortlessly navigate this realm and unearth the ideal investment for you.

Subscribe to our mailing list today! Unlock EXCLUSIVE access to Spanish bank repossessions

So, are you ready to explore the hidden potential of bank repossessions in Spain? Sign up for our exclusive mailing list today and step into the world of rewarding real estate investments. You’re just one click away from turning the key to your future wealth-building property in Spain.

To the potential that awaits!

Invest in Bank Repossessions in Spain from your sofa

Of course, this requires a hands-on approach if you want to go this road. It could be a new start for a new life for some of you we hope. If you don’t want to take this hands-on approach, don’t forget we have found an institutional asset manager managing a Luxembourg-based fund with Spanish bank properties exclusively in it.

Read more on the subject: Are bank repossessions in Spain an attractive investment opportunity?

If you want to find a bank property, here is where you should start: Where are the Spanish bank properties for sale?

Remember, the risks are higher if you buy a bank property from a bank. In Spain, furthermore, we would always advise you to work with a lawyer when you buy a property. He will make sure everything is fine. We developed privileged relationships with local lawyers very active with foreigners, don’t hesitate to ask us for a real estate lawyer anywhere in Spain from our network in a specific region. A technical survey of your Spanish property is strongly advised as it is a bank property.

Before buying in any region, have a quick look at all our research on the top 20 Spanish Cities: Everything you ever wanted to know about the top 20 Spanish Cities real estate markets

Our FAQ on Investments in Spanish bank-repossessed properties

The post Unlocking the hidden potential of Bank Repossessions in Spain appeared first on How to buy in Spain.

Spanish bank repossessions: Your ultimate guide to 120.000 repossessed properties

Residential, Land, Offices and Industrial repossessed properties in Spain

First, why buy a Spanish bank property?

Better financing conditions

• Price is lower most of the time because the bank doesn’t want to keep it on its balance sheet
• More lending: one of the big advantages is that you can get a bigger loan … up to 100% of the Value of the property, in general foreigners would have difficult to get more than 70%. Have a quick look at our mortgage calculator to know your buying power.

We developed a detailed mortgage calculator: Payment schedule, monthly payments,…

• Better financing conditions: Find the current mortgage conditions in our last paper: What are the best Mortgage rates in Spain in 2018?

So, if you find your bank property, negotiate the best rates with your Spanish bank ;). Have a look at our free report: Your Spanish Mortgage: How to apply? How to get the best rates? The only condition to get it is to subscribe to our weekly newsletter.

Why are there so many bank properties in Spain?

As you can see from our table “Returns and mortgages in Spain“, there are about 25 million properties in Spain. Before the crisis of 2008, about 0.8 million properties were sold per year in Spain.

In 2016, 456.000 properties were sold and 73.000 were foreclosed, i.e. less than 0.3% of the properties in Spain.

If you prefer to play it safe, you could look at new build projects available now. New build projects are qualitative and cheap in Spain.

73.000 properties foreclosed in 2016

Before 2016, A lot of properties were foreclosed after the quick increase in real estate prices in 2007. In the following years after the crisis and with the decreasing prices, people couldn’t afford those properties anymore.

Check the chart of real estate price evolution before and after 2007:

Which regions have the highest foreclosure rate in Spain in 2016?

• Region of Murcia 0.89%,
• Andalusia 0.74%
• Valencian community 0.7%.

For more on that subject, read our article on the foreclosures in Spain: Foreclosures in Spain in 2016.

Our Tips

• Read our useful paper on this: Our top 10 pieces of advice for buying your property in Spain
• Allways hire a lawyer to check the situation of the property and to clear any legal hurdle. Fill the form here and find your local independent lawyer thanks to the local network of Howtobuyinspain.

• Technical check with an architect? Those properties could be old or new but unfinished or empty for a while…
• How to pay in £,$,¥ Pounds, Dollars, Francs, Yuan for my Spanish property?

• Study properties in the neighbourhood in order to make the perfect offer for the bank.
• Location not always terrific: pay attention to the location.
• Submit a bid directly to the branch manager, even better if you are a customer.
• Ask the local branch manager if they are properties not listed online.
• Have a look at all our partners’ deals: we have the connections with local lawyers working for foreigners in many languages in all the Spanish regions and we have other interesting contacts in our network, check it here:

Your easy guide to help you find your foreclosed property

How we sorted the properties?

In order to help you as much as we can and as we noticed that our earlier paper Where are the Spanish bank properties for sale? was a direct big success. We decided to have a more detailed analysis of all the different bank repossessions on the market, we regrouped all the Spanish bank portals with a lot of bargains… We found more than 120.000 properties for sale.

We sorted the properties by type of use: Residential, Land, Offices and Industrial.

For all those categories, we will provide you with the top 3 bank real estate portals with the most properties.

At the end of this section, you will find our exclusive table (easier to read on a computer, difficult to fit so many data in a readable table for mobile users, sorry) regrouping all the Spanish bank websites with the repossessed properties.

Our tip: As you know, some banks are more active than others in some regions. Always try to know which one you should check for your region… a small local bank could be much better than a large national bank for finding your dream property in a certain region.

Residential Bank Repossessions in Spain

The three real estate bank portals with the most Residential properties for sale are:

1. Haya Real Estate: Haya Real Estate is the portal of Bankia. Bankia is the result of a merger of four smaller banks. They have more than 14.000 repossessed residential properties all over Spain
2. Servihabitat: Servihabitat is the portal from “la Caixa Bank”. Servihabitat is the portal from “la Caixa Bank”. CaixaBank is the leading retail bank in Spain, with the largest customer base. They have more than 10.000 repossessed residential properties all over Spain.
3. Sareb: Sareb is a company created to manage assets from many Spanish banks. As of June 2017, the portfolio of Sareb has 39 billion euros, of which 30% is real estate. They have more than 10.000 repossessed residential properties all over Spain.

Find more residential bank repossessions on our exhaustive table of all the Spanish bank web portals at the end of this article.

Land Bank repossessions in Spain

The four real estate bank portals with the most plots for sale are:

1. Altamirainmuebles: Altamirainmuebles is the real estate portal of Banco Santander, the largest bank in Spain. It has more than 8.000 plots of lands.
2. Three other players have about 5.000 plots of land:
   • Haya Real Estate: Haya Real Estate is the portal of Bankia. Bankia is the result of a merger of four smaller banks.
   • Servihabitat: Servihabitat is the portal from “la Caixa Bank”. Servihabitat is the portal from “la Caixa Bank”. CaixaBank is the leading retail bank in Spain, with the largest customer base.
   • Sareb: Sareb is a company created to manage assets from many Spanish banks. As of June 2017, the portfolio of Sareb has 39 billion euros, of which 30% is real estate.

Find more plot of land from bank repossessions on our exhaustive table of all the Spanish bank web portals at the end of this article.

Office Bank repossessions in Spain

The three real estate bank portals with the most plots for sale are:

1. Haya Real Estate: Haya Real Estate is the portal of Bankia. Bankia is the result of a merger of four smaller banks. They have more than 2.000 repossessed offices all over Spain
2. Cajamar: Cajamar properties are managed by Haya Real Estate, the portal of Bankia. Bankia is the result of a merger of four smaller banks. It has about 800 offices in Spain for sale.
3. Solvia: Solvia is the portal from Banco Sabadell. It’s the fourth biggest bank in Spain. It has about 800 offices for sale.

Find more Office bank repossessions on our exhaustive table of all the Spanish bank web portals at the end of this article.

Industrial Bank repossessions in Spain

The two real estate bank portals with the most Industrial properties for sale are:

1. Altamirainmuebles: Altamirainmuebles is the real estate portal of Banco Santander, the largest bank in Spain. It has about 600 industrial properties.
2. Haya Real Estate: Haya Real Estate is the portal of Bankia. Bankia is the result of a merger of four smaller banks. It has about 600 industrial properties.

Find more industrial bank repossessions on our exhaustive table of all the Spanish bank web portals at the end of this article.

Maybe one of THE BEST PLACE TO CHECK? The official Spanish State portal for auctions (in Spanish)

From time to time, the Spanish State has to sell properties to recoup taxes or other, you have a list of properties per region:

The official Spanish State portal for auctions

Our full updated list of the Spanish bank real estate portals with bank repossessions

Move with right or left arrows to see all the data of this table

If you want you can find those Spanish bank real estate web portals on our web page regrouping all the real estate websites of the Spanish banks. If you are a financial investor, our last article: “Are bank properties in Spain a nice investment?” could interest you.

Last but not least, if you are about to buy in Spain, read property buyers guide written for any foreign country and our two very useful articles:

The cost of buying a property in Spain: What is the real cost of buying your Spanish Property?

The cost of owning a property in Spain: What is the real cost of owning your Spanish property?

Remember, the risks are higher if you buy a bank property from a bank. In Spain, furthermore, we would always advise you to work with a lawyer when you buy a property. He will make sure everything is fine. We developed privileged relationships with local lawyers very active with foreigners, don’t hesitate to ask us for a lawyer in a specific region.

Before buying in any region, have a quick look at all our research on the top 20 Spanish Cities: Everything you ever wanted to know about the top 20 Spanish Cities real estate markets

Looking for an expert in Spain: Lawyer, Architect, Property Hunter, Mortgage? Ask us directly!

Stéphane

Senior Analyst and Strategist at HTBIS

Check the full HTBIS team here

The post Spanish bank repossessions: Your ultimate guide to 120.000 properties appeared first on How to buy in Spain.

27.055 bank repossessed properties in Spain in 2019

This is a very good news for the real estate sector in general and for the property owners in Spain in particular.

Will this situation change in 2020 due to the Coronavirus and its impacts on the Spanish real estate?

The annual rate of housing foreclosures in Spain is 0.05%

The total number of registrations for foreclosure on dwellings initiated in 2019 was 7.129 houses -21% vs 2018. We talk about properties owned by private person only. If we talk about housings in general, the number is 27.055 foreclosed properties during 2019.

This is what the Instituto Nacional de Estadistica just published in its report.

3% increase vs 2018

For 2019, 0.1% of all the properties existing in Spain. According to the census, there are 25m properties in Spain, follow the link and check our table on that.

Look at the evolution of foreclosure over the last 4 years.

It is an impressive 4 year in a row decrease since 2014: -5% in 2018, -33% in 2017, -31% in 2016and -15% in 2015.

Mortgage default rates according to their initiation dates

As you can see on this chart, 24% of mortgages that defaulted in 2019 were initiated in 2007. 50% of the defaults in 2019 were mortgages initiated between 2005 and 2008. Why? The prices where much higher before 2008 and leverage was bigger just before the crisis.

As you can see on our chart, prices were much higher at that time: €2.100 vs €1.653 now (December 2019).

Which years have the most defaults vs the number of issued mortgages?

Most impacted regions during 2019

Regions with the highest foreclosure rates for housing are:

• Catalonia, 5757 properties bank repossessed properties
• Andalusia, 5681 housing were foreclosed in 2019
• The Valencian community, 5356 properties foreclosed

Are bank repossessed properties back to Spain?

Foreigners active in the same regions

It could represent a nice opportunity for foreigners as they are active in all those regions. As a reminder, foreigners bought 16% of all transactions during the last year.

Click on the image and get our last report analyzing where foreigners are buying real estate in Spain in.

Why is the number of bank repossessed properties decreasing?

The three main reasons are:

• The economy in Spain is stronger: GDP growth above 2% and one of the highest in Spain, see the sixth “must see chart on the Spanish real estate” comparing the Spanish growth rate with all its EU counterparts. Going in Sync with higher growth, you have a decrease in the unemployment rate as you can see in our table with the economic statistics of Spain. You can read our paper on that: Spanish GDP growth to remain strong up to 2021
• Financing rates are very low: check our table on mortgage and financing rates in Spain or read our article on the best financing conditions in Spain.
• A final reason was explained above: about 50% of the foreclosures are mortgages that were initiated in 2006, 2007 or 2008. Right now, we are 10 years later and so people could adjust in the meantime on one side and on the other side, as prices are much lower, people are taking a much more “calculated” risk.

Will the number of bank properties rise due to the Coronavirus?

We expect the number of bank repossessed properties to rise in 2020 due to the Coronavirus and due to the economic situation deteriorating.

We shouldn’t have the same situation as we had in 2008 for many reasons:

• The situation is much more stable: less leverage with banks, less leverage with promoters, lower prices and correct if you compare with international cities
• We should pay attention to the economic situation for the next 2 years and of course keep a close eye on the Coronavirus situation and its impacts on travel.
• Another positive: the low financing rates that should continue to help buyers.

Do you want to find bank repossessions in Spain right now?

Do you want to have a look at properties repossessed by Spanish banks? Have a look at our article, one of the most read of our site, on that subject: Spanish bank repossessions: Your ultimate guide to 120.000 properties.

If you are looking at buying a property on the Costa Blanca, this is our most recent paper: The last bargain on the Costa Blanca? 12.000€ for a Spanish Bank repossession

Are you looking for a competitive rate for your mortgage in Spain?

Get the best mortgage rate in Spain

Here was the update of the last quarter of 2018

The annual rate of housing foreclosures in Spain is 0.05%
The total number of registrations for foreclosure on dwellings initiated in the third quarter of 2018 was 1.551 houses vs 2.181 in the same quarter of 2017 and 4.696 in 2016. We talk about properties owned by private person only. If we had to talk about housings in general, the number is 7.182 foreclosed properties during the quarter.

29% decrease vs 2017
For 2017, 27.171 properties were foreclosed, (housing and others) i.e. 0.1% of all the properties existing in Spain. According to the census, there are 25m properties in Spain, follow the link and check our table on that.

Default rate by initiation date
The default rate is the highest and represents about 50% of all defaults for the mortgages initiated between 2005 and 2008… when the prices where at the top… and just before the crisis.

Regions with the highest foreclosure rates for housing are:

• La Rioja, 0.26% of all existing properties, 121 housing during the quarter
• The Valencian community, 0.16% of all existing properties, 1.696 housing during the quarter
• Castilla y Leon, 0.14% of all existing properties, 228 housing during the quarter

Here was the update of the last quarter of 2017

• The annual rate of foreclosure in Spain is 0.1%

The total number of registrations for foreclosure on dwellings initiated in the fourth quarter of 2017 was 2.103 houses vs 4.696 in the same quarter of 2016.

That is what the Instituto Nacional de Estadistica said in its last report.

• 34.2% decrease for 2017

For 2017, 27.171 properties were foreclosed, i.e. 0.1% of all the properties existing in Spain. According to the census, there are 25m properties in Spain, follow the link and check our table on that.

This is a nice decrease of 34.2% vs the numbers of 2016.

Look at the evolution of foreclosure over the last 4 years.

It is an impressive 3 year in a row decrease since 2014: -34% in 2017, -31% in 2016, -15% in 2015.

• Default rate by initiation date

The default rate is the highest and represents about 50% of all defaults for the properties acquired in 2006, 2007 and 2008.

Regions with the highest foreclosure rates for housing are:

• The region of Murcia 0.43%, 3.252 units
• Andalusia 0.42%, 13.644 units
• Valencian community 0.42%, 10.212 units

Who is buying those bank properties in Spain?

We found at least one institutional buying bank properties in Spain for more than 10 years… Here is our article on that: “Are bank properties in Spain a nice investment opportunity?”

Check the full press release in Spanish.

Looking for an expert in Spain? Ask us directly!

Stéphane

Senior analyst and strategist at HTBIS

Check the full HTBIS team here

The post 27.055 bank repossessed properties in Spain in 2019 appeared first on How to buy in Spain.

Are there any Spanish bank repossessions left on the Costa Blanca?

Last year we wrote our article on the bank repossessions in Spain: Spanish bank repossessions: Your ultimate guide to 120.000 repossessed properties. Many foreigners started to check the Spanish real estate market since the crisis of 2008. Of course, prices are rising and currently are at 1.590€ per square meter but we wanted to check ten year after the crisis if there were any bank repossessions left on the Costa Blanca. We did the work for you.

We did the search for the Costa Blanca as, with the region of Murcia, the region of Alicante remains one of the cheapest where you can find sun 320 days per year, check here the monthly weather statistics for any Spanish, while being close to the sea. If you want to compare the prices of the different regions, have a look at our quarterly report: The Spanish property market: our detailed analysis of the top 20 markets!

Before starting, remember, the Spanish government helped to clean the situation arising from the crisis, thanks to pooling “bad assets” – understand, assets for which the mortgage was worth more than the property value.

Where can you find bank properties? First, you can find those at all the major Spanish banks. Second, you can find those at the Sareb. Sareb was created to manage the assets from many Spanish Banks.

What have we found?

We found many properties listed under 50.000€… even some under 20.000€ listed on all the Spanish bank portals publishing the bank repossessions.

In total, we found:

• more than 4.500 properties
• more than 1.400 plot of land
• more than 3.500 properties listed for less than 150.000€

Why buy a Spanish bank property?

Better financing conditions

• Aggressive price as the bank wants to take it off its balance sheet. This was true after the crisis, now we note that the banks are more and more greedy on one hand, on the other hand, bank sold from time to time all their portfolio of properties in one go.
• More lending: one of the big advantages is that you can get a bigger loan … up to 100% of the Value of the property. In general, foreigners would have difficult to get more than 70%. For more information about mortgages, read our most read article: Your definitive guide to your Spanish Mortgage: How to apply? How to get the best rates? or alternatively Have a quick look at our Spanish mortgage calculator to know your buying power.

We developed a detailed mortgage calculator: Payment schedule, monthly payments,…

• Better financing conditions: Find the current mortgage conditions in our last paper: What are the best Mortgage rates in Spain?

What is the current situation on Spanish foreclosures?

Why are there so many bank repossessions properties in Spain?

As you can see from our table “Returns and mortgages in Spain“, there are about 25 million properties in Spain. Before the crisis of 2008, about 0.8 million properties were sold per year in Spain.

In 2016, 456.000 properties were sold and 73.000 were foreclosed, i.e. less than 0.3% of the properties in Spain.

For 2017, 27.171 properties were foreclosed, (housing and others) i.e. 0.1% of all the properties existing in Spain.

In 2018, the number of foreclosed properties is strongly lower than in 2017.

It is very good news that the current economic situation in Spain is improving as you could read in our article we wrote earlier this month: Spanish GDP growth to remain strong up to 2021.

Look at the evolution of foreclosure in Spain in our earlier article.

Is it a good time to buy a bank repossessed property in Spain?

Most of the bank foreclosed properties will be off the market very soon. They were one of the main driving force for Spanish property prices to go down (with the economic situation and the fact that banks were lending less heavily). Right now, all those three forces are going in the opposite direction: we have fewer properties on the market, we have a nice economic activity and Spanish bank are lending more aggressively: What are the best Mortgage rates in Spain?

Last but not least, real estate prices are rising in Spain: check the chart of real estate price evolution before and after 2007:

We found an institutional investor buying bank repossessions in Spain for more than 10 years, so, we guess that it is not such a bad deal to buy bank properties.

Which regions have the highest foreclosure rate in Spain?

• Region of Murcia
• Andalusia
• Valencian community (of which the Costa Blanca)

Our Tips before buying a bank property:

• Don’t dream, if they are on the market, there could be a reason, be cautious.
• Read our useful paper on this: Our top 10 pieces of advice for buying your property in Spain
• Always hire a lawyer to check the situation of the property and to clear any legal hurdle. Find your property lawyer or tax adviser anywhere in Spain
• Technical check with an architect or property surveyor? Those properties could be old or new but unfinished or empty for a while… this means a lot of surprises.
• How to pay in £,$,¥ Pounds, Dollars, Francs, Yuan for my Spanish property?
• Study properties in the neighbourhood in order to make the perfect offer for the bank.
• Location not always terrific: pay attention to the location.
• Submit a bid directly to the branch manager, even better if you are a customer.
• Ask the local branch manager if they are properties not listed online.
• Have a look at all our best partners’ deals in Spain: we have the connections with local lawyers working for foreigners in many languages in all the Spanish regions and we have other interesting contacts in our network.

Your easy guide to help you find your foreclosed property in the Costa Blanca

How have we sorted the properties?

In order to help your Search, we have created a table with direct links towards those portals.

You will learn:

• How many residential properties are listed for each portal on the Costa Blanca? In total, we found more than 4.500 properties.
• How many properties are listed under €150.000 on the Costa Blanca?
• How many plot of lands are listed for sale on the Costa Blanca?

Of course, if you are looking for garage, trastero, offices or industrial properties, you can find those as well.

At the end of this section, you will find our exclusive table (easier to read on a computer, difficult to fit so many data in a readable table for mobile users, sorry) regrouping all the Spanish bank websites with the repossessed properties.

Our tip: As you know, some banks are more active than others in some regions. Always try to know which one you should check for your region… a small local bank could be much better than a large national bank for finding your dream property in a certain region.

Residential properties and Land repossessed on the Costa Blanca

The three real estate bank portals with the most Residential properties for sale in the Costa Blanca are:

1. Haya Real Estate: Haya Real Estate is the portal of Bankia. Bankia is the result of a merger of six smaller banks. They have more than 1.200 repossessed residential properties listed for the Costa Blanca.
2. Servihabitat: Servihabitat is the portal from “la Caixa Bank”. CaixaBank is the leading retail bank in Spain, with the largest customer base. They have more than 600 repossessed residential properties in the Costa Blanca.
3. Sareb: Sareb is a company created to manage assets from many Spanish banks. As of June 2017, the portfolio of Sareb has 39 billion euros, of which 30% is real estate. They have more than 500 repossessed residential properties on the Costa Blanca.
4. Altamirainmuebles: Altamirainmuebles is the real estate portal of Banco Santander, the largest bank in Spain. They have more than 500 bank repossessed homes on the Costa Blanca

Find more residential bank repossessions on our exhaustive table of all the Spanish bank web portals at the end of this article.

Land Bank repossessions in the Costa Blanca region:

The four real estate bank portals with the most plots for sale are:

1. Altamirainmuebles: Altamirainmuebles is the real estate portal of Banco Santander, the largest bank in Spain. They have more than 500 bank repossessed plot of land on the Costa Blanca
2. Sareb: Sareb is a company created to manage assets from many Spanish banks. As of June 2017, the portfolio of Sareb has 39 billion euros, of which 30% is real estate. They have more than 270 repossessed plot of land on the Costa Blanca.
3. Haya Real Estate: Haya Real Estate is the portal of Bankia. Bankia is the result of a merger of six smaller banks. They have more than 200 repossessed plot of land listed for the Costa Blanca.
4. Servihabitat: Servihabitat is the portal from “la Caixa Bank”. CaixaBank is the leading retail bank in Spain, with the largest customer base. They have more than 180 plot of land on the Costa Blanca.

Find more plot of land from bank repossessions on our exhaustive table of all the Spanish bank web portals at the end of this article.

Another good place to check is the official Spanish State portal for auctions (in Spanish)

From time to time, the Spanish State has to sell properties to recoup taxes or other, you have a list of properties per region:

The official Spanish State portal for auctions

Our full updated list of the Spanish bank real estate portals with bank repossessions

Move with right or left arrows to see all the data of this table

If you want you can find those Spanish bank real estate web portals on our web page regrouping all the real estate websites of the Spanish banks.

Last but not least, if you are about to buy in Spain, read our two very useful articles:

The cost of buying a property in Spain: What is the real cost of buying your Spanish Property?

The cost of owning a property in Spain: What is the real cost of owning your Spanish property?

Remember, the risks are higher if you buy a bank property from a bank. In Spain, furthermore, we would always advise you to work with a lawyer when you buy a property. He will make sure everything is fine. We developed privileged relationships with local lawyers very active with foreigners, Find your property lawyer or tax adviser anywhere in Spain

Before buying in any region, have a quick look at all our research on the top 20 Spanish Cities: Everything you ever wanted to know about the top 20 Spanish Cities real estate markets

Looking for an expert in Spain: Lawyer, Architect, Property Hunter, Mortgage? Ask us directly!

Stéphane

Senior Analyst and Strategist at HTBIS

Check the full HTBIS team here

The post The last bank repossessions on the Costa Blanca? 12.000€ only? appeared first on How to buy in Spain.

In less than six months, this news is one of our top read news, we got more than 3.000 readers very quickly!

If you are looking for a property on the Costa Blanca, here is or more recent paper: The last bargain on the Costa Blanca? 12.000€ for a Spanish Bank repossession

Have a look at another paper we wrote on the same subject: Where will you find the Bank repossessions in Spain? It will help you to find residential properties, plots of lands, offices and industrial properties.

For financial investors, here is how you could invest on Spanish bank repossessions without buying any yourself: “Are Spanish bank repossessions a good investment opportunity?”

So we did the work for you, we regrouped all the Spanish bank portals with a lot of bargains.

Before looking at the list, have a look at our main paper studying the top 20 property markets in Spain:

Everything you ever wanted to know about the top 20 Spanish Cities real estate markets

Here is the list of all the portals selling bank properties in Spain

• Alisedainmobiliaria is the portal of the fifth biggest bank in Spain, Banco Popular (Santander Group now). The group sold more than 10.000 properties in 2016 for more than €1 860 m.
• Altamirainmuebles is the portal of Banco Santander, the largest bank in Spain. The group as more than €50bn of assets. You can find all the properties with a map, very useful. Many properties all over Spain.
• Bankinter is the sixth biggest bank in Spain.
• BBVA Vivienda or Anida, is the portal of BBVA Vivienda, the real estate subsidiary of Banco Bilbao Vizcaya Argentaria. BBVA is the second biggest bank of Spain. About 6.000 properties, mostly land, commercial properties and offices.
• Cajamar properties are managed by Haya Real Estate, the portal of Bankia. Bankia is the result of a merger of four smaller banks.
• Cajasur inmobiliaria is a subsidiary of Bilbao Biskaia Kutxa (BBK) en Aurrezki Kutxa eta Bahitetxea. It has properties from Andalusia to Costa Blanca.
• Casaktua is the portal of Banco Banesto, the 3rd biggest bank in Spain. In 1997, Banco Santander bought the majority of this bank. In 2016, Aktua was acquired by Lindorff, European player active in Credit management.
• Grupo Ibercaja is the 8th bank in Spain
• Haya Real Estate is the portal of Bankia. Bankia is the result of a merger of four smaller banks.
• Kutxabank inmobiliaria is a Bank created in 2012 from the merger of 3 “Cajas” in the Basque Country.
• Liberbank properties are managed by Haya Real Estate, the portal of Bankia. Bankia is the result of a merger of four smaller banks.
• Sareb, as of June 2017, has a portfolio of 39 billion euros, of which 30% is real estate. It received almost 200,000 assets, which were valued at 50 billion euros in two phases. The main tranche was transferred on 31 December 2012 from the four nationalised banks: Bankia, Catalunya Banc, Banco de Valencia and NCG-Banco Gallego. The second transfer was contributed by the four banks that received State funding: Liderbank, BMN, Caja3 and Banco CEISS. Out of all of the assets, 80% are loans and 20% are properties. Sareb’s mission is to divest assets over a period of 15 years while optimising the value of its portfolio. Sareb has a very useful site and you can search on the map very easily by defining your own specific area of search.
• Servihabitat is the portal from “la Caixa Bank”.
• Solvia is the portal from Banco Sabadell. It’s the fourth biggest bank in Spain.
• Unicaja inmuebles is based in Málaga, it is a subsidiary of Unicaja which has a clear leading position in its home regions of Andalusia and Castilla y León.

We regrouped all those portals in our “useful links” section: Properties for sale by Spanish banks.

If you want to search on a map, Altamira, one of the biggest player did the work: map of Altamira properties in Spain.

Idealista, the biggest portal of real estate in Spain, lists 30 000 properties of Sareb and 16 000 properties for Altamira.

Another good news for those properties is that from time to time you can get up to 100% mortgage (vs the more standard 70%) at very good rates! So now that you found your bank property, have a look at how to negociate the best rates with your Spanish bank 😉 Your Spanish Mortgage: How to apply? How to get the best rates?

So, why not have a look?

If you want other interesting sources for Spanish bank properties for sale, go to our web page regrouping all the real estate websites of the Spanish banks.

Last but not least, if you are about to buy in Spain, read our two very useful articles:

The cost of buying a property in Spain: What is the real cost of buying your Spanish Property?

The cost of owning a property in Spain: What is the real cost of owning your Spanish property?

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Looking for an expert in Spain? Ask us directly!

Stéphane

Senior Analyst and Strategist at HTBIS

Check the full HTBIS team here

The post Where are the Spanish bank properties for sale? appeared first on How to buy in Spain.