Costa del Sol's Property Specialists

02 Oct

Junta de Andalucia Offers Discounted Homes

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Andalucia Offers Discounted Homes

In a bold new move to under-cut local estate agents and Spanish Banks, the Junta de Andalucia has announced the launching of its new website that will provided thousands of homes for sale at a 20 per cent discount, plus favourable financing conditions. With the Junta de Andalucia and Spanish Banks vying for the few potential buying Clients, there are very few buyers left for the local Estate Agents, who might know a thing or two more about property then government officials and bankers.

This new financial incentive is being used to attract new buyers to Andalucia, with many local officials saying the “bottom has been reached” and “property prices will not drop any further” with the hope of stimulating both the property and construction sectors.

It is no secret that the region of Andalucia has to make a huge effort to offload the overstock of properties that have been left unsold from the property boom. Furthermore, both the developers and banks are offering properties for at least 20 per cent off the current market value, while participating banks agree to provide loans of 100 per cent of the cost of the discounted homes, meaning buyers will have to make no down payment (except IVA tax). These loans that are being offered will be interest-only for the first three years, and from the fourth to the eighth year the Junta will provide mini-loans to keep the buyers' monthly payments at reduced levels. So should a new home owner opt for the Junta de Andalucia package, then for the first eight years the buyers' mortgage payments will be reduced by some 40 per cent. The Junta has one billion euros available for their loan scheme, which will offer buyers between 9,000 to 15,000 euros, depending on circumstances.

It has been estimated that there is some 70,000 new homes unsold in Andalucia and with the increase in IVA schedule for the middle of 2010, there might not be a better time to buy a property in Southern Spain.