This year, the Euribor has suffered a new slowdown: so far, 2012 has been from 2% in 2011 to 0.8% at the end of August. This has been largely celebrated in Spain, as this saves down an average of 1,000 Euros per year in home mortgage expenses.
The Euribor rate has been increased by lower interest rates, applied in early summer by the European Central Bank. It has finally plummeted, and experts point that this downward trend will reach even 0.5% by the end of 2012.
Should these estimates, the Euribor would show unusual figures representing half the 1% barrier, which has hitherto been impassable.
Buying a home in Spain is therefore more bearable now than a year ago and now many buyers are feeling relieved and much more optimistic concerning the future of their investments.
What’s more, the TVA will only finally increase in January 2013, going from 4% to 10%, which highly benefits from low prices – today, buying a house in Spain is 31% cheaper than in 2008. Finally, all these positive factors are really working on the current Spanish’ Housing Market upswing.
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The real estate experts at Balearic properties share their knowledge and experience of the real estate market in Mallorca As international property consultants.