McBroon’s fiscal porridge

The Spanish property market appears to have reached a watershed moment in time with reports that the collapse in prices might be bottoming out, based on sales of more than 500,000 properties in the last 12 months, and British buyers finally having to realise the once mighty Pound now only buys one now mighty Euro.

Despite the world recession property sales have dipped by only 20% thanks to heavy discounting by developers, Spanish bank repossessions and British vendors taking reverse advantage of the 30% exchange rate decline.

It’s been a buyers’ market for many months and 10,000 deals a week across Spain provide strong evidence that the more realistic prices and extra low interest rates have attracted the bargain hunters, but with many hesitating Brits hoping for further falls.

If September 2009 proves to be the watershed, then they will have missed out on the real bargains like 2-bed apartments for EUR 74,000 and 3-bed villas from EUR 140,000. While continuing to “look before they leap” 1,000s of British couples intending to buy a property in Spain, have suffered a double whammy as Sterling has plunged and is now unlikely to get better than parity for years.

The decline in the Pound is a direct result of McBroon’s fiscal porridge, that has brought Britain within a caber-toss of bankruptcy with savage budget cuts admitted for the first time by this patently dishonest bunch of incompetents…

It seems the Swiss, who know better than anyone how to manage the economy, are forecasting the continuing decline of Sterling as big corporations quit the sinking ship, now driven onto the rocks with the bungling McBroons at the wheel. They also point at the 800 billion pounds worth of borrowing to bale out the banks and the mismanaged British economy and pose the question: “Who would lend more money to this UK Government”?

Buyers who haven’t yet taken a view trip to Spain to select the last of the real bargains are unlikely to see house prices drop further, but extremely likely to see their buying pound shrink in their pockets. Over-50s need to move fast to secure a Spanish property investment.

The other half of their Hobson’s Choice is to stick with the McBroons fiscal porridge and watch as Spain follows Germany and France into better economic state, house prices recover from their 30% dip and life returns to normal with generous dollops of Med lifestyle and sunshine.