Free Press release: The Tide is Turning Claim the Experts

Mike Walsh

The steadily rising pound against the euro has got more than
Spain’s ex-pat community licking their lips in anticipation. The UK’s property
speculators are finally getting their wallets out.

If the pound’s value continues to rise; and the consensus of
informed opinion believes it will, sellers on the Costas will find more
viewers. The downside is that they will not get as many pounds sterling … if
they are converting.

Estate agents and foreign exchange providers are
experiencing a revival of interest from those interested in buying properties
abroad. The most popular locations are Spain, France, Italy and Portugal. Conti
Financial Services say enquiries have jumped by 20 per-cent in recent weeks.

THE PERFECT STORM

Michael McLaughlin of Southern Comfit International says the
reversal was quite predictable. “When the pound was falling to near parity
reluctance to buy was perfectly understandable. The situation is now reversed
and the ‘tanking’ of property prices have combined to create the perfect
storm.”

The UK pound’s seemingly inexorable rise has also reversed
the trend in which European property buyers preferred buying into the UK
market. The tide has turned in favour of those selling and buying along Spain’s
Mediterranean coastlines.

Currencies Direct, Mark O’Sullivan, the group’s director of
dealing says, “We have seen a dramatic increase in the amount of money entering
the international property market.”

SPAIN OFFERS MORE FOR LESS

Is the value difference between the UK improving? Michael
McLaughlin thinks so. “In truth Spain has always offered more for less than has
the UK. It isn’t back of the envelope accountancy to say you get twice as much
for your money in Spain as you do in England; with other advantages added.”

The more pragmatic buyers appreciate that whilst the value
of the pound isn’t as potent as it was several years ago, the drop in property
prices on the Costas has compensated. A buyer in 2009 is actually getting as
good a deal than those who bought prior to 2005, because artificial values have
been replaced by reality. 

Astute property buyers realise that whilst the pound is 15
per-cent weaker against the euro than it was last year, the 30 per-cent drop in
asking prices is now equal to a pound set at €1.40 to €1.45.

Speculators,
rather than the domestic buyer, also realise that taking out a euro-mortgage,
whether they need it or not, will put them at an advantage as the rate
continues to improve.