Monday, January 05, 2009
Moving to northern Spain!
To anyone contemplating moving to Spain, be it to the north or anywhere else, the Stirling to Euro exchange rate is proving a near insurmountable obstacle.
Most people in the UK with these relocation aspirations will be trying to sell a house and have seen the value of their home drop by around 30% over 2008.
Added to this, they now have to face a vastly diminished currency conversion. Indeed a rate that was in the region of 1 to 1.45 (12 month ago) is closer to 1 to 1 now!
For many this will have made any such move financially impractical for the foreseeable future.
It should also be born in mind that those who did make such a move a year or more ago will also be finding the going tough. Any monies left in UK banks will have seen their Euro value diminish and the value of all UK based pensions will also reflect this 30% to 45% currency shift in their real “spend” value in Spain.
All told it is a dire situation and one that sees few winners.
For the north of Spain, property buying opportunities have yet to realise the dramatic falls seen in the large southern Spanish villa complexes. Indeed, with a different “seller” strategy such dramatic falls seem unlikely unless the recession lasts for several years.
The one area where this may not be true is in the new build and off-plan apartment sector. Unlike the rural homes which are in private ownership, these developments need to be sold to give the investors a return on their money and time becomes a critical factor.
As I said a few weeks back, watch for some deals on apartments in places like Galicia and Asturias.
Another bad point, but one to consider if you are intending to move to Spain, is the general increase in the price of everything. This covers, utilities, food and fuel and, although still far lower than the UK, living costs in Spain are rising and these increases look set to continue.
Most people in the UK with these relocation aspirations will be trying to sell a house and have seen the value of their home drop by around 30% over 2008.
Added to this, they now have to face a vastly diminished currency conversion. Indeed a rate that was in the region of 1 to 1.45 (12 month ago) is closer to 1 to 1 now!
For many this will have made any such move financially impractical for the foreseeable future.
It should also be born in mind that those who did make such a move a year or more ago will also be finding the going tough. Any monies left in UK banks will have seen their Euro value diminish and the value of all UK based pensions will also reflect this 30% to 45% currency shift in their real “spend” value in Spain.
All told it is a dire situation and one that sees few winners.
For the north of Spain, property buying opportunities have yet to realise the dramatic falls seen in the large southern Spanish villa complexes. Indeed, with a different “seller” strategy such dramatic falls seem unlikely unless the recession lasts for several years.
The one area where this may not be true is in the new build and off-plan apartment sector. Unlike the rural homes which are in private ownership, these developments need to be sold to give the investors a return on their money and time becomes a critical factor.
As I said a few weeks back, watch for some deals on apartments in places like Galicia and Asturias.
Another bad point, but one to consider if you are intending to move to Spain, is the general increase in the price of everything. This covers, utilities, food and fuel and, although still far lower than the UK, living costs in Spain are rising and these increases look set to continue.
