Why Living in Spain During a Crisis Isn't That Bad Really - The Positives

Published on 04/01/2010 in Living in Spain

Currently wherever you go in Spain people are talking about the "Crisis" and how bad and deep it will be or already is. The deep recession in Spain is without doubt difficult for many but positives are already starting to come out of it. This article is written as I want to point out some of them.

Crisis in SpainThe recession brought hugely reduced interest rates. Those who have now lost their jobs are experiencing hugely reduced mortgage and loan repayments compared with last year. The drop in mortgage rates from 6% to 2% has had a huge effect on the number of repossessions. The average Spanish mortgage is 500 Euros per month less than it was last year. An extra 6000 Euros a year in your pocket can make a huge difference

Next, the combination of lower property prices and low interest rates means that good fixed rate mortgages on property are available meaning one can actually get a buy to let property at a decent price and give a return on investment if you let it. In 2006-7 this was virtually impossible.

There is much less competition around for estate agents which personally I find an excellent piece of news. Around 70-80% of estate agents have disappeared and it is only the best that remain.

Spain has a highly qualified workforce waiting for the chance to do a job. A very large proportion of its young people are unemployed and they would love to have a chance to show what they can do. When you ally this to the great transport infrastructure of roads, air and the fantastic rail system you have a great opportunity to open up a company here that can be competitive at both a national and international level.

The fact that with property values have tumbled is good news for buyers, if not sellers. Bargains under the Spanish sun are now much more prevalent.Buying a property for lifestyle reasons as opposed to an investment will get you a much greater value for money compared with a couple of years ago.

Spain remains a beautiful place to live as the basic fundamentals of the climate, the location and the lifestyle are all well in place. Spain remains the place that Northern Europeans will come to play in simply because of where it is. The country only needs to believe in itself a bit more.

Finally, Spain has a major strength in the field of renewable energy, transport and certain areas of technology related to these fields which it needs to develop. If the current economic storm forces Spain to become more competitive and more productive and this branches out into new technology and exports then perhaps the crisis will be a good thing long term as i delivers Spain from its overreliance on construction and tourism.

Whatever happens in the future, Spain is in a position that other countries do not envy currently. However we need to remember where Spain has come from. In the mid seventies it was a third world backwater coming out of 36 years of a brutal dictatorship. Spain has done a lot of catching up and may fall behind somewhat in the next few years but it has shown its resilience once and can do it again.

Written by: Graham Hunt

About the author:

He writes for the websites http://www.valencia-property.com and http://www.houses-for-sale-in-spain.net which are considered to have high quality, great value properties and more importantly excellent information about the process of buying and selling property in Spain and also lifestyle issues in Spain as well as unbiased views of what it is like living in Spain and more especially Valencia.

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Alex Hewetson said:
16 December 2012 @ 20:40

I need a house in Spain.

11 January 2010 @ 01:40

You fail to comment on how Spain treats its tourists ,This has not changed and there are other places where Northern Europeans can play .Spain is very slow to learn lessons from the past or to take note of the experience of their tourists or of those who buy a property as a place to holiday .I for one have found other places to play that are not constantly on the take and are more welcoming to those who just want to play and enjoy holidays .The Spanish government is presuming everyone is on the take ie taxing those who don't let out their properties regardless of wether they do or don't .I don't so why should I pay .Spain is just a big joke now and is burying it's own future in the sand .

08 January 2010 @ 00:17

Great to look at the positives of living in Spain

suemac said:
06 January 2010 @ 22:20

Hi Dot

Many Spanish youngsters speak English, as they learn it from a young age, so I would suggest that you try and get a couple of quotes from locals. We live in a mainly Spanish area, however the local plumber speaks a bit of English and he gave us a very reasonable quote. We are retired too, so donĀ“t have money to throw around.

Good luck!


Dorothy Sharman said:
05 January 2010 @ 12:46

Hi Graham

An excellent article and one I thoroughly agree with having just completed an apartment purchase in Fuengirola for my retirement. The only fly in the ointment is that whilst you say there are many Spanish youngsters - highly qualified - looking for work, it is very difficult for holiday makers like myself who have only just started to learn the language and so are more reliant on english ex-pats who still seem to think they are in the UK when they price a job.

For example I had one electrician tell me a rewire would cost 5000 euros and when I queried this - revealed he was charging a daily rate of 220 euros and that for a 2bed/2bath place it would take 12 days ! Whilst ignorant of Spain and its ways I may be, but stoopid ? No. So here I am wishing to reform my apartment and being given some really stupid estimates that leave me gasping with incredulity.

Oh how I wish I could find a reasonable Spanish or English worker who does not think because I am British I must be rolling in euros, and lacking in brains when it comes to the prices quoted!

Regards Dot

Brian said:
05 January 2010 @ 10:58

Graham - can you give an indaction of how you see Property prices going in the next 1- 5 years ?

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