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When we’re about to buy an apartment, lots of doubts and questions spring to mind; and bank-owned apartments are always recommended by a friend or close acquaintance.
We know that when it comes to buying, we look for the cheapest deal, the hidden gem that nobody else has found, the best opportunity. And we start mulling it over and asking ourselves which apartments we can find for the lowest price. Bank-owned apartments are one of the first options that spring to mind, as they have a reputation for usually being the cheapest. But be careful! They can come with many problems, defects and encumbrances that mean they aren’t always the best investment.
We also wonder which are the best areas in which to buy this first or second home, so we consider whether these bank-owned apartments are located in the areas that really interest us.
Many studies suggest that most people who buy property as they get older do so because they are looking for a second home or a profitable investment from which to receive a monthly income (buy-to-let). Bank-owned apartments are always a consideration in these searches.
On other occasions, people are simply looking to buy a first home to retire in, after having paid rent for years in a major city.
There are many possible scenarios. But whenever we think of a second home, a sound investment or a place to retire, the first thing that springs to mind is living by the sea.
Living by the sea and waking up every morning to perfect weather for a stroll along the beach, enjoying the sun and the sunrise with that sense of joy that comesfrom living in an apartment overlooking the Mediterranean is one of the dreams we’ve always wanted to fulfil.
What are ‘bank-owned apartments’?
Bank-owned apartments are generally properties that the bank has repossessed and then puts up for sale at a much lower price, but as I mentioned earlier, you need to find out all the details about the terms and conditions, as they aren’t always the best option.
Bank-owned apartments are often very attractive to buyers, particularly because of the financing terms. Their main advantage is that the mortgages granted by banks for their own properties allow you to finance more than 80 per cent of the purchase price; they can be taken out over terms of up to 40 years and often offer flexible payment arrangements, such as a grace period for the first few months.
However, there are also new-build apartments where banks may offer you that 80 per cent mortgage to finance your second home.
Is buying a bank-owned apartment cheaper?
It’s often said that bank-owned apartments are cheaper than new-build apartments, but this isn’t necessarily the case. In fact, this is generally not true; apart from the occasional special offers from certain banks, bank-owned apartments aren’t necessarily cheaper than others.
It’s true, but it’s not the norm. When buying a bank-owned apartment, it’s sometimes easier to secure financing, but it’s nothing out of the ordinary compared to buying new-build apartments in Valencia.
Bank-owned apartments or new-builds?
When we’re looking to buy a new-build apartment, there are many options to consider. But we need to bear in mind that if we want to make a sound investment, we should look for the most reliable option that’s least likely to cause us headaches in the future.
For this reason, as bank-owned apartments are second-hand, we need to assess whether, even though they may be slightly cheaper in some cases, they really are the best investment. Bank-owned apartments may have defects that can become more serious over the years. So, if you genuinely want your investment to be profitable, a new-build apartment may be the wiser choice.
According to data provided by DIARIO EL PAIS, following the last property crisis which ended in 2014, there has been a significant rise in property purchases and in property values, as summarised in a comprehensive article.
In short, we cannot recommend our apartments in the ‘Ciudad Jardín’ Building 3 and the ‘Ciudad Jardín’ Building 4, developed by Inseryal, highly enough. These are brand-new apartments right on the beachfront at Oropesa del Mar / Cabanes in Castellón. These apartments are handed over fully furnished, equipped and decorated, ready to move into.
The aim of this post is to help you make a reliable, straightforward investment at an enviable price. Not only do we help you keep the initial outlay for your purchase as low as possible, but we also offer you the option of a very low monthly instalment of just €690 per month.