Saturday, July 4, 2009

2009 is the ideal time to pounce for Spanish properties

Spain's deflationary collapse is now hitting levels of intensity which will soon have profound repercussions on greater Europe. Spain "is touching bottom in the (economic) crisis," Deputy Prime Minister and Economy Minister Elena Salgado said.

However, Mr. Salgado said that next year Spain will achieve stability and will begin to grow "very weakly" again in economic terms, but then it will begin to grow "more quickly" starting in 2011. There will be no more tax hikes this year and after the summer officials will have better data to use in making fiscal decisions with an eye toward 2010, he said in an interview published in the daily El PaĆ­s.

According to the Bank of Spain, Zapatero's government has already committed 50 billion euros ($66 billion) to stimulus measures for this year, wiping out three years of budget surpluses and putting it on track for a shortfall of 8.3 percent of output this year. The European Central Bank purchased an additional 60 billion Euros worth of Eurozone covered bonds in an effort to shore up the rapidly deteriorating housing prices in Spain and Ireland.

Now could be a good time to buy Spanish properties as recent figures indicate that in the 12 months leading up to April, the cost of housing fell by ten per cent. According to Shelter Offshore, the fall in the cost of housing in Spain might mean that prospective buyers could pick up a bargain. It stated that investors who want the "pick of the property stock" and a "handsome bargain" might find that 2009 is the ideal time to "pounce".