# Zero Money down, low deposit deals



## Goldberg (May 24, 2007)

What do people think about the low money down, no money down deals that are coming into the market?


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## kaz101 (Nov 29, 2007)

I was about to say it can't be both 

In Australia no money deals were being offered a year or so ago by doing 100%+ mortgages. However with the rising interest rates in the Australia they are now less common and I assume that the people that took them out could end up in financial trouble. 

I've done a money out deal in the UK (when I was resident there) and that was wonderful. 

How are the deals structured in Spain for them to be low or no money down?

And yes I am a property investor 

Regards,
Karen


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## Goldberg (May 24, 2007)

Well obviously.
It is no money down
or
Low deposit.

There are some deals, some banks will do, others will not. Prices are dropping in Spain and some people are in the sh2t, so the prices they sell at are discounted.

It has to be double sided.
ie. Good price, and good rental potential.

the other thing is your residency, as non residents have to pay income tax on all income in spain, where as residents do not, we can write off things pre tax. So the best deals are for people in spain not outsiders,

But I think that is always the way in Spain. The spanish bring me things, some are really good, some are not so nice, but most are good value stuff.

To be low money down or no money down the following must happen.

Asset valued at lets use an example it is easier.

Asset valued by bank valuer at 150k
Seller is selling at 100 (desperate seller)
Bank gives 80% loan to value loan.
80% of 150 is 120k, the bank will loan.

Property price is 100 plus tax is 110 and mortgage is around 113k.

Bank will want as high as possible on escritura.


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