Spanish banks don't like property that is in any sort of rental program
Because they think they will have trouble repossessing it if there is a 12-month contract for rentals etc
Even though the repossession process in Spain is glacier like in speed terms
So we have a client that has a €220k property that will go into a 20 year 5% rental program
The bank are valuing it at €110k
Yes, half the price
And they will give him a mortgage of 70%
€77,000 mortgage on a property that cost about €235k after taxes
Thats about a 33% mortgage
Some risk - the income is going to be way more than this
Stupid, stupid stupid, and very expensive for our client. Like it's his fault the banks are all screwed...............
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