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100% Finance Overseas Deals

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Doeas anyone here know of anyone who has successfully completed one of these deals with the exact terms of the original offer being honoured ie deposit returned, buyback at premium, guaranteed rental, free furniture etc. there are lots of these deals around which appear too good to be true - so they probably aren't. But I just wonder how so many are flourishing without them getting exposed or caught out. If anyone has any information of a company who is genuinely offering and completing such deals I'd be very interested to hear.

Thanks

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Doeas anyone here know of anyone who has successfully completed one of these deals with the exact terms of the original offer being honoured ie deposit returned, buyback at premium, guaranteed rental, free furniture etc. there are lots of these deals around which appear too good to be true - so they probably aren't. But I just wonder how so many are flourishing without them getting exposed or caught out. If anyone has any information of a company who is genuinely offering and completing such deals I'd be very interested to hear.

Thanks

when you do, please let me know.....even a 90 % would be great for amount less than 50,000 Euros.

Thanks

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This is taken from a recent article.

100% mortgages in Spain - what´s the catch?

As a property agent with a reasonably high profile, we receive a lot of requests from developers to promote their products. An increasing number of these have been Spanish developers offering 100% mortgages (including closing costs) for buyers and high commissions (6-10%) for the agents. They´re usually big developments (500 units+) with facilities such as swimming pools, golf courses, sports centres, shopping malls etc.

I´ve always had suspicions about these developments and I included one in our schedule to satisfy my curiosity. I won´t give away too much information about the resort we viewed, but there are lots of them in the Costa del Sol and it´s highly unlikely we will ever promote one.

The development we viewed had more than 1000 units all told, and although construction has completed, most have never been occupied. The developer told me they were 80% sold, but he actually meant that they´ve taken 20% deposits for 80% of the properties pre construction and that most of these buyers have no intention of completing, certainly not at 2007 prices.

As sales fell off a cliff in late 2008 and people delayed closing, the developers cashflow dried up and funds have clearly not been available to maintain the resort over the past 18 months. Mould was visible on every property we viewed with cracks on the interior and exterior walls, walkways and ceilings. No heating or lighting fixtures had ever been installed.

The golf course was overgrown, the sports centre was never started, the shelves on the supermarket were bare, and the entire roof of the indoor swimming pool will need to be replaced due to the inadequate air conditioners that were installed.

The developer clearly owes the bank a fortune and the bank is desperate to divide this debt between 100s of buyers rather than one developer (who is probably insolvent).

Hence the 100% mortgages.

The pitch is that the bank provides 80% on their "valuation", the developer "pays" your 20% deposit plus your closing costs and then you get your free property with exclusive access to their rental pool.

Give me a break

So you get a 2 bed property for €250,000 without having to spend a penny. You just need to service a €200,000 mortgage over 20 years at a variable interest rate with a net rental income that probably wouldn´t amount to more than €4,000 per year. Setting aside the substantial problems with the existing and non existing facilities, no other bank would give you a valuation of more than €175,000 and they wouldn´t lend you more than 70% of it.

Cheers

N.

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  • 259 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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