With just 80 days of property buying tax breaks left in the Spain real estate market, international
bargain hunters are determined to secure the best
deals from struggling Spanish banks and developers who have seen sales
boosted this year by peak to present discounts averaging 44% and a 50%
cut in property VAT, reports PropertyInSpain.
January sees Spanish property tax return to 8% and the postponed
increase of 2% added on - a big jump that many buyers are determined to
avoid by buying now with a total discount averaging 50%.
Year-end buyers will also avoid the uncertainties of the Spanish
Government's newly formed Bad Bank for toxic property assets that will
sweep up 1,000s of the cheapest, least wanted, completed homes at rock
bottom prices. Banks are expected to retain "the good bank properties"
and increase prices to balance losses on their Bad Bank assets.
Property in Spain analyst, Ben Walker said: "More buyers have
suddenly realised there are only 80 shopping days left to buy a Spanish
property bargain with a 50% tax discount. Fly to buy activity is already
at a high level in Scandinavia, Germany and France and now the British
and Irish are also booking their viewing trips as they see bargains they
have had their eyes on snapped up and removed from the market.
"When the really Bad properties go into the Bad Bank that will
leave good properties in good locations, still at good prices, but
subject to prices creeping up in line with the increasing demand as the
banks will be tempted to recoup their losses on their Bad Bank
disposals."