Prices of repossessed apartments in Polaris World have been slashed by as much as 50 percent as banks try to sell assets acquired during the property market collapse.
Polaris World handed over 1,500 properties and land to lenders in May 2009 to cancel 970 million euros of debt. Now the banks, are using hefty discounts and 100 percent mortgage deals to help clear the backlog and get some money back. Spain’s real-estate and construction slump left thousands of vacation properties unsold and their builders facing bankruptcy. The number of homes purchased in Spain by foreigners dropped 78 percent from 2006 through 2009.
The problem with Polaris World Resorts (we did look at them) is as beautiful as the resorts are, they are in the middle of nowhere, they are still in a bit of a wilderness.
Existing home prices in Spain have fallen 22.5 percent since peaking in April 2007. The country now has about 1.4 million unsold homes. The Spanish banks took about 60 billion euros of real estate onto their books as a result of the country’s worst recession in 60 years.
Starting Sept. 30, the central bank enforced tighter rules on how much lenders have to set aside in provisions for the assets, making it more expensive to hold on to them. Hence the sale!
No comments:
Post a Comment