55% below bank valuation

[Goldberg Global]

I have got some incredible units, the best is 55% below bank valuation that is current. The worst is 36%! still amazing deal. And they are nice! In Denia.

Amazing figures. regards

[Lysos]

GG,

All that proves is that Bank valuations are meaningless; it's what you buy & sell for that matters.

[Goldberg Global]

This is simply not true.

A legal and current bank valuation allows you to get finance from a bank. It is the most important thing. To say bank valuations are meaningless is not an informed opinion. It is what all the mortgages in Spain are based on! It is the loan to value that a bank or banks are conducted on. ie. It enables clients to get finance! With out a bank valuation you can not get money from a bank!
And without a current and valid one. This is current and valid.

Originally Posted by Lysos

GG,

All that proves is that Bank valuations are meaningless; it's what you buy & sell for that matters.

[Lysos]

GG,

Apologies; I wasn't referring to valuations in that respect. My point is that 'investors' can be misled by the comparison of valuation to price, believing they are getting a 'bargain'. This is especially true on some of the Costas, where it is estimated there are over 1 million unsold new properties.

To be fair, your post is slanted that way. If it was just about finance all you have to say is that the bank valuation adequately covers a mortgage. The fact that the bank valuation is 55% above asking price does not in isolation make for an amazing deal. It is far more important to look at the prices of comparable properties, and if looking for investment returns, supply & demand, actual verifiable rental returns (not agents' wild speculation) and actual prices achieved on resale.

[Goldberg Global]

Noted. Fair point.

[rowlandsbb]

Not 55% below bank valuation but 'very good value'
Polaris World have some ready now at great offers.....mainly the last few on the built developments which they want to finally complete
Eg 1 bed apart down form 183.147€ to 119.046 € -2 bed from 200.915 € to 130.550 € and even 3 bed 3 bath villa from 455.255€ to 295.916€
Just a few so anyone interested get in touch
Real good offers and worth a look... do not think these will hang around for long...in fact I am looking at finance for the 2 bed at 130.595 € to host visiting clients instead of using a hotel

[Lysos]

Another way of looking at this, Brian, is that Polaris World, aware they were overpriced to start with and there is a distinct shortage of buyers, having spent a fortune on T.V. adverts, are really desperate; hence a 35% drop in asking price -which means there's room for even more negotiation (should you really want one.....).

Sends out two clear messages:

1) To those who bought at the original prices: "We've been shafted and certainly won't be recommending this outfit to anyone".

2) To those thinking about buying in the next year or so (because the economic fundamentals aren't going to change in that time; if anything they may well get worse),
there's no need to pay the asking price; be patient.

[Goldberg Global]

Lets be fair.

If you are getting them beneath bank valuation or substantially under bank valuation, they are a relatively good deal if people want

1. Better value holiday homes
2. Better value retirement homes.
3. On the buy to let cycle I am not convinced . ie. you have to structure yourself with a company if you are a non resident.
4. Possible to buy to hold and sell in 3 to 5 years.

I think the first 2 is the core market. It will shake up for the next 12 months at least I see.