Holiday Lettings news - Spanish bargains coming onto the buy-to-let market

Spanish bargains coming onto the buy-to-let market

The global credit crunch is causing woe for some in Spain, but for property investors who have their finances in order, it is also presenting opportunities.

Repossessions and the tightening of mortgage lending conditions are ensuring a steady supply of reasonably-priced properties onto the market, accessible to those with cash to spare.

Even for those who have to borrow, Spanish lending practices can work in buyers' favour.

Terry Walker of Spanish Property Insight explained: "Spanish banks lend on the value rather than the asking price, so that gives enough spare equity for 100 per cent mortgages" when an investor is snapping up a bargain at less than its true price.

However, Mr Walker stressed that the properties being most affected are primarily suitable for buy-to-let rather than relocations.

He said: "There are properties for about 30,000 euros but spend the same again and you’ve got a lovely family house in the middle of a village. They will rent very well."

While repossessed properties in Spain are traditionally sold at auction, Mr Walker said that some banks had been approaching his company and asking it to put homes for sale on its website.

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