Banks Apply Up to 80% Discounts on Their REO Assets

16/09/2014 – Expansion

To set the ball rolling and take an advantage of the better perception of Spain among investors, Spanish entites launched new offers on their real estate web sites addressed to all kinds of budgets and buyer profiles. Moreover, thereon, they inform about the mortgage-signing options and conditions.

Banking display windows show up to 156.000 listed repo properties, out of which more than 92.000 are dwellings. In this grand offer one may find price slashes which reach 80% in accordance to the asset type. Furthermore, best valued homes stand in holiday and coastal destinations, as well as in Madrid, Barcelona or Valencia but in these cities the REO stock represents a smaller volume. Meanwhile, experts start to point at opportunities in the peripheral areas of large cities with discounts of 20 to 30 per cent.

Main entities in Spain have undertaken the following sales strategies:

CAIXABANK – the Catalonian entity and its Servihabitat currently have 13.567 dwellings up for sale and 1.321 units for rent, mostly located in Catalonia and Valencia. Only since March, CaixaBank has sold a total of 900 homes. Among the sales boosters it runs to reduce its portfolio is the You put the price (Tú pones el precio) campaign, which allows the purchaser to specify how much they are ready to spend.

BANCO POPULAR – this bank puts up for grabs over 5.000 dwellings and 5.000 units of other type on the web site of its servicer Aliseda (www.gesaliseda.es). The cheapest homes of the entity are mainly found again in tourist spots of Andalusia, Catalonia and Valencia. With the Your house from sales (Tu casa de rebajas) offer, a purchaser can find discounts reaching 47%. For example, prices of homes with a sea view in Manilva (Malaga) start from €71.000, while an apartment in Roquetas del Mar may be acquired for only €36.000.

BANKIA – the entity ranks the third in the REO asset volume. Altogether, its properties total at 20.556 units, out of which 16.800 correspond to dwellings and 2.300 to garages and storage rooms. In general, Bankias prices are comparable to those of Sareb (Spains bad bank), to which it had transferred over 22.000 assets. Bankia markets its REO properties through web site www.bankiahabitat.com.

The most successful offload strategy by now has been the Housin good price (Preus Pisonuts – cat.) campaign which encompasses 1.300 homes in Catalonia, Valencia, Murcia and the Balearic Islands at unrepeatable prices to be applicable only until September 30th.

Apart from this promotion, Bankia has launched the We will run out of our homes pretty soon (Nuestras casas van a volar muy pronto) offer with price slashes of up to 40% valid by November 5th. To give an example, a 3-bedroom apartment in Benalmadena (Malaga) costs €225.000.

SABADELL – together with its real estate arm Solvia, the bank markets 8.300 houses situated within the Valencian Community, Murcia and Almeria. Its main sales trigger, Your opportunity is right here (Tu oportunidad se encuentra aquí) allows it to sell homes by 60% cheaper. Last year, the group sold 18.500 properties, improving the previous years score by 34%.

Besides, the entity promotes various construction projects on its web site (www.solvia.es) in the Next Solvia section where it informs about six new housing developments under construction in Madrid, Barcelona, Valencia and Oviedo, available at exclusive prices and 100% financed.

BBVA – the next entity and its REO asset manager Anida put up for sale 17.890 properties in total, out of which scope 8.734 refers to homes. What is more, the banks website www.bbvavivienda.com gives a chance to browse through 15.953 real estate assets belonging to developers.

BBVAs campaign We have all home sizes, only you are missing to dictate the price (Tenemos todo tipo de espacios, sólo faltas tú para poner los precio) gives investors the chance of proposing their bid for one of 7.700 properties (storage rooms, garages or dwellings) which already represent values by 85% lower than their original prices. The special offer includes such units as a detached house in Mostoles for €285.000 (41%-off on the asking price) or a 44 square meter property in Almeria for €28.600.

SANTANDER – Altamira, shared by Santander and fund Apollo, trades the REO assets at www.altamirainmuebles.com. With the We would like you to look beyond a house (en Altamira nos gusta que mires más allá de una vivienda) motto, the servicer offers a wide range of units. For instance, new apartments in Alicante start from €70.000, while flats in a housing developement with a covered, air-conditioned swimming pool and a sports/entertainment area in Boadilla del Monte are available from €230.000.

BANCO CEISS – It is a merger of the old Caja España and Caja Duero savings banks which lists 4.205 dwellings scattered around Madrid, the coast and Valladolid. In the last city an investor may find some interesting rural land. To illustrate, the portfolio contains a semi-detached house in Cigales (Valladolid) which sells at €85.700. Still, Banco Ceiss disposes on real jewels located along the coast, like the three detached luxury houses in the Balearic Islands standing at €1.5 million each, as well as a semi – detached housing development in Ayamonte (Huelva) with flats starting from €128.000.

BANKINTER – the bank trades 4.339 REO assets with a gross book value of €597.8 million, reduced by a €30 million worth of properties year-to-date. Among the homes offered by Bankinter at www.bankinter.es, a detached, brand-new and designer house in Galapagar (Madrid) may be purchased for €695.000.

BMN – this fusion (Caja de Granada, Murcia and Sa Nostra savings banks) transferred 16.000 foreclosed properties worth €5.8 billion to Sareb last year. To view these and the rest of BMNs assets, visit www.bmnviviendas.com. Private investors will be probably attracted by such listings as the 120-square meter apartment in Seville at an asking price of €120.000 or a semi – detached house in Cox (Alicante) at €96.000.

ABANCA – former NGC Banco has managed to double its REO sales in less than a year. In order to shed them rapidly, the entity lists them at www.escogecasa.es and puts bargain prices on homes all around Spain. In some area, the values do not cross €50.000, while in the coastal spots dwellings are available from €36.000, not to mention the irresistible conditions on buying the banks land portfolio.

Although many of these opportunities require renovations, they represent a strong potential as a buy-to-let investment. For example, an apartment in Torrevieja (Alicante) for €43.500. To satisfy more demanding purchasers, the bank lists a single-family detached house in said Galapagar for €443.200, including a 22% discount.

IBERCAJA – most of the REO asset load of the entity (3.342 units in total) is located along the Mediterranean coast. A detached house in Orihuela (Alicante) sold for €3 million is its most expensive property. However, less affluent buyers may acquire a flat in Arganda del Rey (Madrid) for €67.000.

The entity organizes various launches to propel its repo sales, like the 50%-off Housing Weeks (La Semana de la Vivienda) and the Open Day (Las Jornadas de Puertas Abiertas) in September scheduled in Utebo and Calatayud (Zaragoza) and in Yebes (Guadalajara).

KUTXABANK – the banking merger created from the union of the Basque savings banks has increased the foreclosed property sales by 49% since March, selling 1.917 units. On its web site www.kutkxabankinmobiliaria.es one finds 1.597 dwellings concentrated in Madrid and Levante, by 53% more than half a year before. The entity cuts in prices by 10% on average but still one may come across such bargains as the 108 square meter apartment in San Sebastian for €560.000  (7% off). More affordable, though, might seem a 55 square meter flat in Valencia which costs €24.000.

 

Original article: Expansión (D. E. & R. M. R. & C. S.)

Translation: AURA REE

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