War and Inflation
If one war wasn´t enough, it looks like tensions have sparked another in the middle east. And with interest rates and inflation at their highest in years, I feel like I´m reliving my youth in the 80´s.
They do say that history repeats itself. What I do hope is that as in the case back then, eventually everything does come to an end, and all this misery and bloodshed eventually stops. When and how are the big questions, and we can only wait and see.
What effects will this have on the world economy and in particular the property market. Well, nearly after all wars, there have been heavy recessions which follow, especially for the countries (directly or indirectly) involved.
With continued growth in prices, and stock markets still at record highs, this currently doesn´t seem to be the case, but the pot is simmering and I guess only time will tell…
The Golden Visa
According to the Ministry of Foreign Affairs, 136 residence permits were issued in Spain for investments in real estate, 72% less than in the previous year.
It seems the golden visa has gone from being a “golden” opportunity to just an added value; It no longer attracts the international buyer. The number of residence permits granted – 136 – is tiny compared to the thousands of international buyers who invest in Spain annually.
Perhaps the minimum level capital investment required of 500.000Eur, or the minimum annual income of 24.000 Eur / year for a single person or 38.000 Eur / year for a couple is beyond the reach of many, especially if they are reliant on a standard pension.
The type of investors that this was aimed at attracting were international, non-schengen buyers, however, countries like the USA, Canada, Russia, China, and now the UK post Brexit etc have been going through a property market recession with inflation and interest rate rises as in Europe, and less people are looking to invest abroad right now.
Aside from this, the bureaucracy of the Spanish administrations stacked with the lack of knowledge by local experts in the matter, has made this a long winded, and frustrating process for those who have the finances to do so.
Joke of the month
My teachers told me I’d never get far since I procrastinate so much.
I told them, “Just you wait!”
Properties:
A lovely collection of houses this month. From affordable villas nestled between town and beach to big budget villas on the golf course. Call us today for a viewing.