The Reality Of The Situation In Spain
Everywhere you go you can hear people talking about the recession and why it is a terrible thing. There is no doubt that this is a deep recession in Spain but I would like to point out a few good points that may come out of it, at least for individuals.
Interest Rates
The recession has reduced the very high interest rates that existed last year. The average Spanish mortgage has reduced by some 500 Euros per month compared with the same month last year. This is a decent amount of extra money in the pocket to spend on other things. Loan repayments have also gone down making even more money circulate in the economy.
Property Values in Spain
Next property values have tumbled. It is definitely not good news if you are selling but for a canny buyer the availability of good bargains to live under the Spanish sun is increasing almost daily. If you are buying property for lifestyle considerations rather than as an investment then you get much better value for money.
Values + Interest = Bargains
Thirdly, the combination of lower property prices allied to low interest rates means that you can get good fixed rate mortgages on property that mean you can actually get a buy to let property at a good price. In 2006 and 2007 this as nigh on impossible.
Estate Agents Disappearing
As an estate agent the good news is much less competition. Around 70-80% of estate agents or realtors have gone out of business and it is only the good ones who remain.
Setting Up A Business In Spain
To start a business in Spain there is an excellent workforce that are highly qualified waiting for a job. Spain has a very large proportion of its young people unemployed and they are just waiting for a chance to show what they can do. When you put this resource together with the great transport infrastructure of roads, air and most especially rail you have a really good opportunity to open up here.
Change In Spain
Lastly, if the recession means that Spain will make the necessary changes in the workplace and thus becomes more competitive. If Spain develops its reneweable energy sources, its transport know how and technological ability then the current world recession is a great opportunity to develop the economy. IF
Conclusions to Be Drawn
Spain is still a great place to live. The fundamentals of lifestyle, climate and location are all in place despite the current issues. Spain is still the playground of the Northern Europeans due to its position. Perhaps Spain just needs some more self belief.
