The housing market in Spain does not seem to have a ceiling. Renting an apartment or paying the monthly payment on a mortgage has become a nightmare that gets worse every year for families in our country. Some recent studies suggest that young people should save for almost 14 years just to pay down a mortgage. In an economy at the mercy of inflation and skyrocketing interest rates, the average house price stood at 2,004 euros per square meter in August. An increase of 7.2% compared to last year.
Faced with this very precarious situation, and paradoxically, households are finding an unexpected ally in the figure of the Tax Agency, which has a system of housing auctions. And at very low prices.
The actual situation. At Magnet we have told through several articles how the vast majority of the population has been forced to the only possible alternative: renting. But that rent already absorbs more than half of the Minimum Interprofessional Wage. And it happens throughout Spain, even in the least demanded cities such as Lugo, Jaén or Huelva. According to the Idealista real estate portal, the average rental price has increased by 9.3% this year, a new historical record. And in the case of the most expensive areas, such as Madrid or Barcelona, prices skyrocket to such an extent that almost three minimum wages are needed to afford a month’s rent. The mortgage eats the same.
Tax Agency Auctions. However, if instead of Idealista, Fotocasa or Spotahome or other real estate platforms, we go to the Tax Agency’s website, we see how there are apartments for €25,000 in Seville or for €12,000 in Valencia with no less than 125 square meters. These are properties that have been seized from taxpayers who have not settled their accounts with the Treasury and which the Tax Agency confiscates and then put them up for auction at a price that is between 30% and 50% below the market and thus obtain income quickly.
How does it work? To be able to see the apartments that are currently up for auction, you must access the BOE Auction Portal. On the website, you should go to ‘Managements’ and then to the ‘Tax Agency auction property search engine’. There you can select the type of property auctioned and then filter by province. In each advertisement there are images of what is being auctioned as well as a short description with details of the home, location, price and auction deadline.
How to bid. To place a bid, the person must be registered with the Tax Agency with a digital certificate, Cl@ve PIN or electronic DNI. Afterwards, simply select the auction in which you want to participate and make a deposit of 5% of the item you wish to bid on. Therefore, you must indicate an IBAN of the person who is going to make the deposit and bids. As indicated on the portal, the interested party will be notified of the highest bid and the one made by the user, as well as the time available to continue raising the bid. If two are equal, the one carried out before will have priority. If you win, the full amount must be paid within a period of 15 days.
Things to keep in mind. But be careful, because in many cases there is a trick. The first thing to keep in mind is that although the initial auction price may seem very low, it can inflate as other users bid and reach prices equal to those of the traditional real estate market. On the other hand, you must make sure that the low price does not hide debts or associated charges, because if so, they must be assumed by the buyer.
And, above all, make sure if the home comes with tenants or even squatters. Unlike the traditional sale, in which the home is transferred free of charge and before notaries, this does not happen in the auction system. On many occasions and as can be seen in the images, the properties are a ruin, so possible renovations must be taken into account.
Image: Tax Agency
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