We have decided to buy a holiday home inland. In the town where we are looking, you can get a 2 bed renovated townhouse for between 75,000 -90,000 euros which I think is very reasonable. I wouldn’t expect the prices there to drop any more. People are buying there and in fact around six of the houses we have looked at since the summer have been sold. One was only on the market for about 3 weeks.[/quote]
If I were you I would keep my money safe earning those small amounts. Do not confuse other peoples actions as a reflection of market upturn. It is nothing of the sort.
Standard and Poor’s has just today downgraded the Spanish economy to ‘negative’ status. Which means the negative processes in the economy are very serious for the future.
Buying a property now is like likely to cost you a great deal more than the purchase price and a lot more than the small return on capital available from your bank.[/b]