Should we buy a property for sale in Mallorca? With the current concerns about the housing market both home and overseas the question is asked alot.
We know that many people are probably thinking “why buy a property for sale in Mallorca, we will wait for prices to drop” but property analysts inform us that unless the current financial crisis effecting the major world economies proves to be indefinite then don’t expect prices to reflect this in Mallorca.
We all know that, there is a real estate crisis in the rest of Spain, the Balearic Islands and Barcelona were the only two areas in Spain to have price increases in 2007. We simply don’t have a 500.000 property surplus here on the island as is being reported on the mainland. Lets not also forget that customers purchase in Mallorca because they fall in love with it!
The property for sale in Mallorca has stabilized over the last two months and the local Spanish and Resident market is all but still. Many customers from all over the world are visiting and purchasing in Mallorca
The effects of the property market have gone thru to Mallorca as we used to see interest rates of 3.0% on mortgages and the current starting rates are now around 5.5%.
We are all fully aware that the British Pound has dropped against the Euro. This will effect the top end budget of the buyers that are looking but even then, most buyers have a certain margin in their budget so they can either absorb this extra cost or look at slightly cheaper properties, it does not stop them from buying. Shopping around for good Currency Exchange Rates also saves you money.
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