Spain’s property market brings further despair for British Expats
An impending cut-price sale of repossessed property that’s been proposed by the Spanish government has incurred widespread concerns from Spain’s British expat community, as the value of their Spanish homes is once again set to plummet.
So as to attract buyers and to help offset the Eurozone crisis’ impact on Spain’s victimised property market and overall economy, the prices of around 15,000 Spanish repossessions will now be slashed to generate budget deficit-decreasing funds of as much as 4.1%, resulting in a final 3% deficit.
The sudden increase in cheaper property prices is expected to have a negative impact on the rest of the property market, ultimately dashing all repatriation hopes for many Brits who are still trying to comprehend and to come to terms with the negative equity that now dictates their quality of life.
Affordability issues mean that manyare now effectively trapped in the confines of recession-struck Spain, a country where a quarter of the population is currently unemployed and economic growth appears to be no more than a pipedream.
The hopes of many British expats now solely lie with the wholly unrealistic sale of their Spanish property that probably sits amidst a sea of unfinished and unsightly developments. Since 2008, prices have dropped by as much as 50%, so any sale could still leave repatriates financially crippled.
“The headline properties in this huge portfolio are absolute gems, but some of the rest are shockingly bad … Those with a historical or special interest attached to them will no doubt fetch a good price. Wealthy foreign investors are always looking for a bargain and they will find plenty to whet their appetites here … The trouble with this sale is everything will go for a rock bottom price or not at all.” said Mark Stucklin, an expert on the Spanish property market.
His words offer scary insight for many upstart expat homeowners who hoped to become ever more affluent with the rejuvenation and resale of investment properties, but now that the construction industry has effectively collapsed, many have been left holding the bag of ill-fate.
Because the Spanish government and Spain’s banking sector have been left to deal with the inherent debt of a property market in crisis, the value of their usually rewarding property assets now pale into insignificance and the 2008 property boom must now seem like something of a distant dream.
By Anthony Standring
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