14 January 2020
English
In the years 2013 and 2014, banks had an immense number of pledged houses for sale, even in large cities like Lisbon and Porto. For example, it was possible to go to a bank branch counter, and thus choose a parish, area, type, floor, etc. It was a golden time for investors, who had a huge supply of houses to buy in Lisbon, Porto and other major cities. At the same time, in regions furthest from the big cities, there were several houses foreclosed for sale at very low prices. It was a time of very low liquidity for those who wanted to sell a house.
Currently, opting for a bank house can still be a good alternative as you can buy houses with excellent conditions and financing facilities. But, nowadays, the offer of real estate is already more limited, especially in big cities.
With the crisis of the year 2009, there were private companies and banks that had high drops in profits and many entities even went bankrupt. It was a crisis that affected several countries in Europe and Portugal had several companies to close.
Banks in Portugal have also gone through a bad phase, and have had to cut new lending to individuals and companies. Then, the Portuguese state needed to lay off civil servants and reduce salaries, to adjust the accounts.
As a result, many people were unable to pay their mortgage loans. The Troika, which was a kind of special commission for the European Union, circulated among the countries most affected by the crisis, and imposed austerity measures. For example, cutting spending in general in the state, new rules for granting new credits and adjustments in debts of those who did not pay.
Thus, the banks were left with the houses of those who did not pay their financing installments properly. In 2012, banks had a large portfolio of houses and it was rare for people to be able to buy real estate. Likewise, the financing of houses for private purchases was almost stopped in its entirety.
At that time, the banks' only solution to generate capital was to put their own foreclosed homes for sale.
To get out of the crisis, banks needed to create advantages to attract new buyers to their homes. The government of Portugal, in 2012, instituted the granting of Gold visas to foreign investors who bought houses with values exceeding 500 thousand euros. Thus, a foreigner when buying a property in Portugal under the conditions, received this Gold visa .
Buying property from the bank has several advantages, thus being able to make a good deal.
Banks generate capital in financial transactions such as loans, credit cards, leasing, among others. However, a house that remains in the bank's real estate portfolio has costs for it. For example, the bank has to pay the condominium, IMI, carry out maintenance on the houses, among other expenses.
For this reason, banks always create advantages and facilities for those who want to purchase pledged houses for sale. Even foreigners can buy real estate from the bank, as long as they have proof of their country's formal income. Each bank has its conditions and list of necessary documents. Most banks do not require a residence permit for foreigners who want to buy a house, but a tax identification number ( TIN) is required.
One of the biggest advantages is the fact that banks usually accept proposals at the level of values.
It is very common for banks to accept a small reduction in value, in order to make a business feasible. It can normally take the bank 48 hours to respond to each acquisition proposal received. This answer can be positive or negative. If negative, the bank usually makes a counter offer in an intermediate amount.
The credit acceptance response is much faster than the approval of a mortgage loan for the purchase of a private home (other than the bank's).
Since the bank's objective is to generate capital and sell houses as quickly as possible , its houses have a much lower interest rate, called spread , to encourage the buyer.
According to Portuguese law, in order to sell or rent a house, it is necessary to obtain an energy certificate, in addition to other documentation necessary to sell a house. All houses pledged for sale already have an energy certificate and all the necessary documentation to carry out the sale of the property .
Contact Buy House Portugal to help you find your dream home at competitive prices!
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