Rumour from the banks is that they are putting up their property prices by 50% in the new year. greedy ruggers-lol

tThing is the banks with the repos are the only ones doing decent mortgage deals up to 90% with less stringent criteria so they can do what they want.

Sounds like agents talking  it up.

 The banks  have sold a few properties recently at 98k e and their lowest price is 90k e for a 2 bed on condado so to put the prices back to the original sale prices starting at 119k wouldnt surprise me.(and gives them a nice 40% profit from the deposits paid).

What is true though is that the banks have stopped lowering their repoed property prices on the costa banca, however sales remain extremely low with only detached properties being shown any interest..

Its hardly surprising that the banks would increase the price of the apartments.  Of course they will cash in on news of such a huge project. Will be good news if they actually start selling them at vthe higher prices as that will clear the stock and maybe start the development going again.

Jill and Terry's forum are reporting that Polaris World have announced profits of 214 million euro's and that one Bank which owns properties on several PW resorts is'' ready to move the assets previously owner by Polaris World in a bid to move forward next year with a clean slate also, they are offering on all the resorts mentioned an unbelievable NO MONEY DOWN, NO COST, ABSOLUTELY NOTHING from you, but a good credit application and a smile'' (condadodealhamaservices.com)

 Yep,

Just spoken to the banks and they are now offering 100% finance including all taxes, notary and legal  fees, so if anyone is interested now is the time to buy prices are at their lowest and ( in my opinion ) will only go up.

L

Inevitable the prices were going to go up - this was the play off for the banks.  They are selling the parcel of land to paramount at undervalue and in exchange all the properties they own and other land assets increase in value.

Good to see them doing the right commercial deal because they probably have to "account" for the loss on the undervalue sale (maybe thats why not officially signed yet - ie get 31 Dec year end out of way first) yet they wont get to "account" for the appreciation in the remaining assets.  Good on the banks for taking the right long term decision

Not wanting to be a wet blanket or anything, but wasn't reckless lending and 100% mortgages by banks what got us all in this mess in the first place? Looks like we'll never learn.

Not if it shifts the properties and they rise in price as expected.

Hmmm........  it was irresponsible lending on 'expected' property price rises in the past that fuelled the global recession in the first place. In other words, people hoping to make a quick buck, like here.

Looks like we haven't learned then.

Agreed that was a big factor of the current recession...lending on overvalued property and ending up with a big shortfall when the loan goes unpaid.

But as the banks already own these properties its a bit different.  Worse case scenario for a bank offering 100% mortgage is that they end up repossessing the property they sold in the first place...no worse postion than if they didn't sell it to start with.

In general though the whole 100% mortgage culture is worrying...I would have thought the practice would have been stopped by the relevant regulators.

The banks could well be be worse off though, if Paramount doesn't materialise (and remember it's still to be financed which I don't think in any way should be considered a foregone conclusion in the current economic climate), and that could have a negative knock-on effect on the resort and existing owners.

No doubt some of people taking up these 'too good to be true' mortgage offers will not be buying as a long term investment or a holiday home for the family, but with the sole intention of making a quick profit on the back of Paramount. If however Paramount doesn't come off and these people then default, as many of them undoubtedly will, then the property value may well be lower than the amount loaned. That wouldn't only be bad for the Banks (who I would have no sympathy for anyway for being so reckless in the first place, given recent history) but also for the resort as a whole.

BTW, I'm not against people profiting from property speculation in any way, I've done it myself in the past many times, but by giving out 100% mortgages like this its absolving buyers of all their risk and responsibility should the value of the property reduce and not increase 'as expected'.

Recent history and experience have obviously taught us absolutely nothing if this doesn't ring out alarms bells in your head.

If people who buy at 100% can afford the mortgage and are in full time employment or self employment with sucessful business and can prove this then this is not irresponsible lending far from it.

Irresponsible lending is giving 95% and 100% mortgages to people who have a track record of missed payments or can't prove there income (self cert). Do you think a Spanish bank is going to lend tyo this type of client?

This is no longer the case in the UK and aslong the people buying these properties have to jump through the hoops we have to in the UK when buying property then this is a good thing. This is because we will have good responsible people being granted these mortgages and people who will pay them on time avoiding repos!

 its not really 100% mortgages as 40% deposit was paid on the original marketing price. the banks are therefore only offering 100% deals on  them at below book value price- (they pump up the price on the books to make them look good). so if they can offload them to a mortgage payer with a good track record and proof of earnings they arent taking much of a risk imho.

What colour is the sky in La La Land bfr? :)

What you've got to remember is that many people taking up these offers will be property speculators that have absolutely no intention of keeping the property, but only in selling it on in year or two for profit on the back of Paramount. Good for them if it comes off.

However....... if Paramount DOESN'T materialise many of them will simply default and give the keys back to the bank even if they are in full time employment and can meet the repayments, as for them that's not the reason for defaulting in the first place. That's because with a 100% mortgage there is no risk for them, and as they haven't put any of their own money down up front, they'll lose nothing except a couple of years mortgage payments at low interest rates. OK, they may never be able to get a mortgage again in Spain but I don't suppose many of them will be that bothered about that.

Wake up, if you don't think there's a risk in this for all of us if Paramount doesn't happen and the resort is flooded with even more bank reposessions then you're being very, very naive. Sorry for being so blunt, but it's true.

So by the properties the bank own at the moment are not already repossessions albeit PW repos????????????

I take your point on board about the people buying may default if there investment does not come off but you are completely inaccurate comparing this 100% lending to the past. I just think if they only offer this lending to clean applicants who have no history in this sort of this then we may have a chance otherwise the property will be repossessed and we will be back to square one with the bank owning the property again.

Just opinion matey don't get touchy!

I wasn't being touchy bfr, but reading my post again I can see how it may have came accross like that.... I promise I'll put more smileys in my posts in future. :)

I could be wrong  but I think many of the apartments being sold now by the banks aren't only reposessions, but also unsold stock transferred by PW to write off debts. In that case I don't think I'm being completely inaccurate about 100% lending at all and my concerns are perfectly justified. The offer of 100% mortgages with no fees is a golden no risk opportunity for speculators who can just walk away if the 'expected' propert values don't materialise. We obviously disagree and you're perfectly happy with it, but I personally don't see that as a good thing for the Resort in the long term. If people have to put down a deposit of say 10% then I think they're going to be far less likely to do a runner is values don't increase, and we won't be flooded with repos a year or two down the line. Surely that would be better for the Resort, no?

Like everyone I hope Paramount does go ahead and my fears prove to be unfounded, and I remain optimistic. But until the finance is found and its build I wouldn't be counting my chickens just yet. 

We have struggled to find anywhere that it actually says the land previously owned by Polaris has definately been selected as the location of the theme park. Despite reading many articles ( not all have very clear translations either!) its difficult to find information beyond an occasional mention of Alhama being the desired location.

Simply Networking are today saying that no decision has been confirmed on the location of the theme park and the price for the land under discussion has not yet been agreed.