Interesting points if you are searching Properties for sale in costa del sol Spain
If you’re experiencing a sense of déjà vu amid the global currency turmoil, you’re not alone thinking you’ve been transported back to the not-so-distant days of the US subprime mortgage crash, subsequent global credit crunch and threatened implosion of the Eurozone.
Seven years later, in what’s proving one of the most eventual years in the geopolitical and socioeconomic spheres, there’s fevered interest in “what’s happening with the national currency on a daily basis due to the hectic situation with the Russian currency,” as a local commentator relayed exclusively to Paradise Marbella Realty this week; while closer to home yesterday, five major banks were fined a hefty €2.6 billion by UK, US and Swiss financial regulators for attempting to manipulate foreign exchange rates.
The reaction from millions of Citigroup, HSBC, JPMorgan Chase, RBS and UBS customers across the Eurozone and beyond is measured: lacking surprise that bankers – instigators of the financial mess we were reportedly just coming out of – can´t resist indulging in unsavoury practices using monies entrusted to them, tinged with newfound confidence that the regulators seem to be doing their jobs.
Looking ahead to 2015, what does the chaotic currency situation signify for property investors in the Eurozone? Ernst & Young stated in September: “We forecast Eurozone GDP growth of 1.5% in 2015, a new driver of the upturn will be investment.”
Despite Russian trade sanctions biting into EU exports, Germany will continue to enjoy its 7% current account surplus, its citizens being among the Costa del Sol’s most prolific property investors.
Meanwhile, the UK General Election in May has laid the foundation for the rocky road ahead as the Costa del Sol’s largest property investment group face mounting anti-EU sentiment, potentially driving pro-European British buyers to the Costa del Sol to Experience the Paradise Difference.
With Fitch Ratings predicting property prices in the Spanish market “likely to reach its low point around the start of 2015,” their forecast could be interpreted as sound advice: Don’t wait until a potential euro meltdown to invest in Costa del Sol property.
Discussing the gradual return of credit flows following the six-year global construction slow-down, Arnold Kling at the Cato Institute said on Russia’s RT this week: “While there’s no one rule for the mortgage credit market, local regulation affects the pace of development.”
A point the Andalusian Federation of Developers and Residential Tourism repeatedly makes to the Spanish authorities from its base on the Costa del Sol.