There are positive rumblings around the financial and property markets, read a quick summary of the UK & Spanish market and our view on the market.
UK Market The Telegraph ran an article this week which made interesting reading, the headline was ‘House prices may have less than 10 per cent to fall’. It is likely that property transactions will rise due to the combination of low interest rates and improving credit conditions which are attracting buyers back to the market. The number of mortgages approved had increased by 20% in February and they stated ‘the last month has seen the first real encouraging data on the housing market for quite some time’. Spanish Market Apart from the property market buying a property overseas in the Euro zone has also been hit by the drop in the Sterling exchange rate, which is averaging around 1.10. According to a report from Spanish Hot Properties buyers have been cautious about buying a property at the rate of 1.10 because if the rate increased substantially they would perceive that as buying at a loss. This raises the question that if a property price has been discounted as low as possible will a potential buyer commit or hesitate because of the exchange? Estupendo’s View I’m not sure you can look back at the history of the Euro exchange rate as this currency has not been in the position of a financial crisis for comparison, the fact is that the Euro is a strong currency and property prices have been discounted, if you have found the right property for you, you may regret not taking this opportunity now to secure a property. If the exchange rate is putting you off buying a property abroad, then you should talk to the currency experts, they can give you an insight on what their predictions are for 2009. Summary Whilst we are all cautious about stating if the crisis is now in recovery, it is important to recognise the small positive steps being reported in the property market and keep an open mind about the future. The property market needs the banks to resume normal lending, there is interest from potential buyers and getting a mortgage is possible, although the banks are reviewing cases in more detail. There are other financial companies such as UCI, their business is mortgages, they are still lending and have excellent products such as ‘Cambio de Casa’ to allow property owners to trade up and down the property ladder. If you don’t require finance but the exchange rate is a deterrent then ask for a longer purchase contract, you can reserve your property, arrange a forward buy contract and complete when the rate hits your specified high. |
|||
|
|