The economy

[alcanadakid]

We read a lot about how the economy in Spain is bad and that there is a possibility that it may be forced out of the euro. I would be interested in member's thoughts about what it might mean.

What would it do to house prices, both in euro/peseta terms as well as in pounds? Should we be selling and converting to pounds while Spain is still in the euro?

I appreciate that there is no definitive answer, but views would be welcome

 

[Nick]

A very interesting question and similar to one I posed a while ago.

How will it affect us property owners??

 

[lollipop]

No one knows for sure how it will affect us all but speaking to some of my friends the opinion is that if we go back to peseta,short term maybe a problem but eventually it will resolve itself. At least they then have freedom to alter exchange rates as they see fit.

 

[alcanadakid]

No one knows for sure how it will affect us all but speaking to some of my friends the opinion is that if we go back to peseta,short term maybe a problem but eventually it will resolve itself. At least they then have freedom to alter exchange rates as they see fit.

The exchange rate is the big concern. If the "peseta" drops then our houses would be worth much less in pound terms and it could be a big drop. It would take a long time to make up the difference.

Running costs would be lower in pounds. Presumably the Germans ( and others) would then re-enter the market and push prices higher. Not sure what would happen to the Spanish buyers.

 

[Smiddy]

Unless people really have to i'd not recommend selling at this stage, highly unlikely it will sell anyway unless you're prepared to drop prices considerably. We have 9 apts in our block, 3 are on sale at the moment, one has been on the market for over 3 years. A couple of years ago they would have sold overnight. You could be lucky, but i doubt it.