There is a current influx of overseas buyers looking to capitalize on the current high level of auction and bank repossession properties currently on the market in the Costa Del Sol. This is understandable as there are many bargains to be found due to the number overstretched investors and owners who are in a precarious financial positions due to the current economic climate.
There are, however several things that should take into consideration before proceeding with any purchase. Firstly, it is worth remembering that when a bank has repossessed a property, this is the culmination of a stressful chain of events for the previous owner and often maintenaince and other issues are overlooked during this time. On some occasions we have found properties to be almost destroyed by the owner before they are forced to leave, with entire kitchens being removed, along with bathrooms and all fixtures and fittings. With this in mind it is absolutely imperative that you view the property in person before you even consider purchasing. Never ever buy a property of this nature on the strength of photos or an agents description. Always make sure you give plently of notice before you intend to view, as some banks will need at least 48 hours before they can gain access. You should always ensure you take a pen and paper with you on the viewing and make good solid notes about the condition of the property and what needs doing to make good. You can then, if necessary, price up the work that needs to be done and see if these figures on top of the purchase price still make this a worthy purchase.
Secondly, are you sure the property really is significantly under market value? Don´t forget the massive pricing bubble that developed in Spain during the boom time. Often you see properties advertised at 50% below market value, which can be misleading given that their original sales price was massively inflated. The only way for you to get a true sense of value is by doing meticulous research in your chosen area, making sure, however that the variables you use to calculate are the same when making your comparisons. IE. Don´t compare beachfront prices with golf property prices etc. Only when you have done this will you be able to determine whether or not a property represents good value and is indeed cheap.
