The Hidden Danger in a 100 % Mortgage Deal
Wednesday, February 2, 2011 @ 9:04 AM
The idea of NOT having to put a deposit down on the purchase of some Spanish property is surely quite attractive. So what is lurking beneath the surface I wonder? Well for sure where there is big money deals there are potentially some traps set for us! I don’t think many of us would trust the Spanish systems anymore following many of us losing deposits on off-plan property deals in recent years! Once bitten twice shy as the saying goes.
On the other hand there will surely be some genuine deals out there which would be a shame to look over with this view. So the trick really is how do we find out what is the real deal!
As an example of a specific situation I was called to go see one of these 100 percent mortgage deals. In fact it was the crème of such deals in that I was told that the legals were also covered by the mortgage including taxes! So this would really be a very low money down deal.
Well everything looked OK on the surface and even many extras were included in the deal that would mean that even fitting out the apartment would be cheap to do because of fully fitted equipment in the kitchens and fitted wardrobes to the rooms. Even a marble surface for eating from meant that there was not need to buy a dining table.
However on checking with local agents it was clear that the property was overpriced for the current market even though it was significantly discounted from the original marketed prices. This still might work for some who don’t have deposit money (or who have lost ii on other deals that have gone bad in the past without bank guarantees). But the thing to realise is that you will need to hold on to it for much longer than other ‘genuine’ price discount deals before the property can be sold again for a profit or you stand to make a loss if sold in the medium term.
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