costa blanca property costa calida property costa del sol property spanish properties spanish property Spanish property bargains a
There really are some great Spanish property bargains available at the moment, particularly if you are looking to purchase in euros from a UK based vendor.
British sellers who are looking to repatriate their funds can now afford to discount their Spanish properties by even more than before, with sterling sinking to around 1.12 euros.
Let´s take this example. In the good old days when £1 was worth around 1.45 euros, a sales price of 200,000 euros would allow a UK based vendor to take their proceeds back to Britain at an equivalent value of £137,931.With today´s exchange rate of 1.12, those same British vendors can now afford to discount their Spanish property to a staggering 154,483 euros, and they will still end up taking the same amount - £137,931 - back to the UK.
This is one of the primary reasons for all of those heavily discounted properties in areas popular with British buyers, especially the Costa del Sol, Costa Blanca and Costa Calida.
Of course, we must not forget that the low value of sterling has also coincided with a general slump in the housing market worldwide, so buyers are rightly asking for even greater discounts on their Spanish properties, thus driving prices down even further. But it is an explanation of why some prices seem to be incredibly low, even compared to 12 months ago.
In the example above, the gloomy housing market may mean that those same vendors would consider a further reduction of 10% in their selling price, making the final price 139,035 euros. In this scenario, the sellers have been helped by the fact that sterling is low, and have actually only discounted the real value of their property by 10%, while the buyer is snapping up an absolute bargain Spanish property, particularly if buying in euros. Even for those buying in sterling, the net effect is still a lower price than if they had previously bought the same property when the exchange rate was 1.45 euros.
Food for thought.
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