So finally after lurching from one crisis to another Europe which in all reality is Germany has finally agreed to the measures that are required to bring an end to all the uncertainty of the Euro and especially Spain’s participation in it.
In reality we all know Spain was never going to leave the Euro but it was up to Germany to agree to the changes that would see individual countries being able to go to the markets and buy bonds at a similar rate to that of Germany and with the new changes this will now happen.
Even before this happens bond rates for Spain and Italy have already dropped and in Spain well below the 7% rate that commentators deemed unsustainable.
So why has Germany saved the Spanish property market? In simple terms especially for UK investors it takes away the uncertainty and the concerns that Spain would leave the Euro thus devaluing and returning to the Peseta. The reality is there has never been a better time to buy Spanish property especially UK buyers with the lowest prices since last century as well as the best exchange rate for several years. All the factors point out this is the time to buy. However you wouldn’t want to buy and suddenly see a 20% devaluation in your asset. Now that is not the case people can invest in Spanish property knowing that they will be getting the best value possible.
One word of caution for all you UK citizens is to ask yourself what the long term future is for the Euro Sterling exchange rate as right now the current rate is a big positive for those who are buying.
So hats off to Germany for finally doing what they had to do and Europe and especially Spain can now go from strength to strength