When to buy that "must-sell" property in Spain?

As the early fall-out from the world credit crunch settles over sunny Spain, there's a whole new breed of savvy buyers eying up the resultant property bargains - and liking what they see.

Couples like John and Janet Wilson are telling everybody about the apartment in Costa Blanca they snapped up with a 25 percent discount (saving £37,000) that was proven when their Spanish bank advanced a 70 percent mortgage. The 2-bed home came with fitted kitchen, wide balcony, three communal pools, tennis courts and a gym - and that famous Spanish lifestyle...

The Wilsons are saying: "We're so pleased with our bargain. A saving of more than 25 per cent isn't exactly small change - it made a world of difference to us and as we are not planningt to sell, what happens to general property values doesn't matter at this stage."

They bought from a "must-sell" builder in the current dash for cash that can mean the difference between the firm staying afloat or going under. They have a 10-year build guarantee and a near completed development with all facilities up and running. Minimal buyers' risk.

But would they have got a bigger bargain if they had waited longer into the credit crunch? Possibly, but that could another year down the line. There may be better bargains in a year or so when the liguidators of the Spanish developers who have gone bust start their fire sales of assets that include finished or near finished homes. 

There could be tens of thousands in the Costas, but the liguidators will be seeking "trade" buyers rather than having to deal with individuals seeking a holiday home. By the time they hit the general market there will be added costs and profit margins pushing up the price to the end user.

So savvy Brit buyers are making their moves now and taking their time to assess the bargains on offer. Google ranks specialist website, www.propertyinspain.net as the top source for Spanish bank repossessions and they receive inquiries for these on a daily basis from British and north European buyers. 

"We have buyers who have put down hefty deposits on repossessions at up to 50 percent below current valuation and are happy to wait until the slow process of physical return of the villas to the bank concerned. The interest they are getting on their deposits is very good and more than double the 2.4 percent equity growth they would be getting had the sale already gone through," explained spokesman, Kevin Barnett.

The website has a Fact Sheet on Spanish repossession procedures and a selection of bargains in prime Costas and Real Spain areas.