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I was once interviewing a BBC Radio presenter in my previous journalistic
capacity and he said something that has rang true with me ever since. He said,
"Once you become a parent you become a political and economic expert within
weeks."
Behind that comment is a wealth of insight. Your future, your finances, your
health and your careers are all brought into the forefront of your thoughts once
your children are born. Our 'provider' instinct and mentality switches on and we
suddenly see the injustices of the world. A couple of those aspects, your future
and your finances we can explore a little within this article.
Before I moved from the UK to Spain, I heard about the intended introduction of
the ‘Property Pack’. It all sounded like too much paperwork and another extra
piece of red tape in the process of selling a house.
I now see myself once again involved in the property market as I live in Spain.
May 2008 sees the introduction of the same ‘Property Pack’ here in Spain.
Instead of seeing the pack as a hindrance I see it as a god send…
It provides a lifeline to those people who have a legitimate property… As
opposed to those that have been saddled with an illegal build.
The Spanish Property Market has seen the
best resulting sales in April 2008 for over a year.
Following media coverage of the failing property market during 2007, most
potential property buyers put their plans onto ice until the situation
improved.
The complete market in Spain saw estate agents shutting through lack of
sales and the crunch during 2007 was to get even worse. Unscrupulous
agents were devising tactics to prise money out of clients through
desperation to inject money back into their own business.
Some such tactics were to ask for a small lump sum payment to substantiate
an offer on a property. Although in the agents defence it eventually was
used as part payment towards the deposit, nonetheless it was a payment
devised to be a part payment of the agents commission. This was one of the
tactics that prevented potential home buyers from venturing into the
Spanish market.
The shrewd investor saw the decline as an opportunity to secure a dream
home at a much reduced price. In fact this aspect of a declining market
was the main purchasing selling point that the Spanish Market was using to
attract buyers.
However as 2008 emerged it was clear that a new year had brought a new
perspective back into the property market. Month on the month the buyers
have been coming back. The estate agents were beginning to see a new surge
of property buyers.
April 2008 has seen the best month in property sales in Spain for almost a
year. This confidence can be expected to multiply as the season for
visiting Spain arrives during May and the summer season.
Upon further investigation of the property market we can see trends that
follow the UK market. Smaller one bed apartments and studios seem to
remain pretty consistent, as do the properties valued at over a £million.
One may think that property has a similar intrinsic value to that of gold;
as it rarely decreases in value. As such of course property has to be the
ultimate way to invest money and see year on year returns.
One new property on the market valued at almost a £million near Cordoba in
Southern Spain; having 15 bedrooms, ideal for a bed and breakfast
opportunity, has received 6 enquiries in the first week it has gone on
sale.
It would appear as a consequence of such interest that a new surge of
buyers has begun. Not to bring the property market back to its prime, but
enough to give everyone, both purchaser and seller a little confidence.
The economy of course is having a direct affect on the market. The Euro is
particularly strong against other currencies, especially the British Pound
and the American Dollar. This would mean that any transfer of money would
have an extremely poor exchange and as a consequence could mean the
difference of up to £15,000 on a £100,000 transfer.
Mid 2007 saw the exchange rate for the Euro at 1.48 to the pound. Today we
see the rate at 1.24. This equates to 24,000 euros for each 100,000 euros
exchanged. Despite this poor exchange rate the property market in Spain is
beginning to rise from the ashes.
We look forward to the continued rise in interest in property sales.
