We’ve all been affected in some way by the current recession -- most commonly, pensions affected by the exchange rate or a fall in property values. Well the tide has now turned, the exchange rate is clawing its way back up from the 1:1 position we had a few months ago and properties are starting to sell again. The last few months have seen an increase in demand for property as UK buyers tune into the fact that they can again buy budget-priced properties in a climate where people are increasingly desperate to sell.
The brave amongst us are acting now and capitalising on some fantastic bargains and opportunities. In some parts of Spain, Brits have left their properties vacant and returned to the UK. Despondent regarding lack of interest from buyers over the past year, they’ve reduced prices to release the equity sealed in their homes to assist them in combatting the recession. This situation, coupled with a favourable exchange rate when sending money the other way (Euro to GBP) makes for some bargain-priced properties.
For example, Mr & Mrs Smith purchased a large property in Pruna during 2004. They paid 83.000€ at an exchange rate of 1:1.50, so this would have cost them £55.300 GBP. Feeling the pinch of the recession, they’re very keen to release the equity from their property and are now looking to simply recover the initial investment, including purchase costs. The asking price has been reduced to only 70.000€, providing them with just under £61.000 GBP, a reduction of €13,000 on what they initially paid. The entreprenurial amongst us are now acting in this window of opportunity. Most currency experts expect the euro to be back into the mid 1.20s by the end of the 2009 and property prices, potentially, will change accordingly.
Pruna is one such village, where properties have seen massive discounting over the past six to nine months as owners realise that reducing the euro asking price can still recover their initial investment.
For more information regarding budget priced properties please email: Phil@andalucia-property.biz or visit www.andalucia-property.biz
by Andalucia Property.biz