Ups and Downs for Spain and Property

The ups and downs of Spain’s property driven economy were highlighted when Prime Minister Zapatero demanded that the European Central Bank help out by lowering the Eurobor interest rate and the ECB President told him to mind his business and promptly raised it for the first time in a year…

The ECB wants European workers to bear the brunt of the growing economic crisis of rising energy and food prices, while the Spanish Government wants to protect the country’s construction industry that has been busy boosting the economy for the last decade and is now shedding high prices and jobs.

As 98% of mortgages in the country are linked to the Eurobor rate Spanish households are in for some belt tightening – just like their counterparts in the UK and the US.Brit buyers seeking that dream home in the sun are going to be paying more if they need a hefty mortgage, but mortgage broker, Alberto Linares points out this is still a lot less than the rate they are paying on the UK homes.

With a wide choice of key ready homes to choose from, British buyers will still find it easier to buy in Spain than in the UK and specialist websites like http://www.propertyinspain.net/ are offering 30% discounts on completed homes and 50% on bank repossessions – and have official valuations to wave around.

A case of seller’s downbeat despair becoming buyers upbeat delight…