The
euro's depreciation against the pound, coupled with the Spanish property crash,
means 2012 could provide numerous opportunities for Brits to expatriate to
Spain
For
all the wild celebrations and chinks of champagne glasses over the festive
season, a brand new year often begins with consumers facing up to the hefty
cost of Christmas overspending. Throughout January millions of Brits would have
been waking up to a financial hangover; one which shrouds them in debt.
However,
despite financial advice prompting consumers to save over the coming months,
currency exchange experts, Currencies
Direct claims 2012 could prompt millions of Britons to realise their dreams
and purchase housing property in Spain.
But
why now?
It's
been widely reported that European political indecision is scuppering any
chance of a short-term euro-zone revival. However this, coupled with the
British economy's strong last quarter showing in 2011, is causing the euro's
value to slowly depreciate against the pound- a favourable exchange rate for
Brits looking to purchase abroad.
Currencies
Direct reports that the pound to euro exchange rate is currently floating
around the 1.2 mark, a rate which hasn't been seen since autumn 2010. This
means Spanish property seems that little bit more affordable in the eyes of
British holiday buyers and is slowly causing an increase in demand for villas
and apartments along the Costa shorelines. However it is not the sole reason.
People
that bought their properties back in the boom of the early 2000s (when the Euro
rate was 1.54) are now selling at the same price, but still making the 20% mark
up on FX, so there is a two side benefit for the EUR - GBP to be at this rate
because the market currently satisfies both ends of the market.
The
Spanish property market is in a slump at the moment: preoccupied with falling
values, negative equity and a glut of unsold property. Most experts agree more
price falls are inevitable in 2012, but even if Brits, buoyed on by market
conditions, decide to purchase property in Spain, the prospect of getting a
Spanish mortgage is pretty bleak at the moment. According to TINSA, a Spanish
property commentator, the best way could be to somehow try and remortgage money
from your existing British home. Either way, the champagne may have to be kept
on ice.
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