A drop in sale price yet still the same amount of sterling to take back to the UK thanks to the exchange rate!
The Spanish see that the property market has been abandoned by many UK buyers due to the poor strength of the pound. However, sterling sellers can sell at 20% below what the property was marketed at a year ago and still end up with the same amount of sterling to take back the UK with them.
Also, the stock of B-money, which comes out at this time for cash purchases will also support the economy for sometime, although it is foreseen that the recession will be sufficiently long in Spain and Tenerife as to draw out most of this ‘resource’. Maybe this is the Bank of Spain’s cunning plan to remove the alternative economy. Unfortunately, the raising of taxes may just encourage it even more.
