Andalucia Industry
Despair Coast
Original article: Costa of Despair? Really?
It looks like the media, in this case the mail are trying to label the Costa del Sol with a new nickname. Previously Known as the Costa del Crime, Follow by the Costa del Golf, now the Mail is trying for the cost of dismissal. Remove Impressive as catchy but not at the Costa da Morte, Coast of Death (official name) That is found in the north of Spain.
The article Which Can be found here online mail A Few Points That makes Outside of sensationalism hold little Validity, A Few of Which I INTEND to comment on.
The author of the article or one of historical researchers Was in contact with me when They Came down on 'fact finding' tour Asking if we Knew of any 'expats' that Were desperate to go back to the UK, Which Unfortunately for the reporters, we Could not help them. And from the article They Did not Have much luck Finding anything of particular Interest.
"In the UK we face Spiralling National Debt, plunging house prices, sky-rocketing Unemployment and the return of 50 per cent income tax – But for the British expats on the Costas Even the situation is worse.
The Spanish economy is Predicted to shrink by 3 per cent this year and one in five people is Expected to be out of work – twice the EU average. Home repossessions Have Doubled, Bankruptcies Soares fast and the bottom is falling out of the tourism industry. "
I Do Not Think That Anyone Can Argue the situation is on average harder for everyone, everywhere, But as far as I Understand It, Alistair Darling has recently Stated That the economy of the UK will contract by 3.6%.
In Regards to paro, it has Always Been Traditionally high in Spain, with STI Even During most robust year of Growth Was it at 8%, nearly twice the EU average. Of course There are more Bankruptcies and repossessions That is the state of the economy. And tourism has only Decreased by 23%, not bad considering a crisis.
"The broad Reasons are well-documented. Barely six months ago, £ 1 Bought about € 1.4, But with the exchange rate now at virtual parity, the state and private pensions depend on Which many expats – and Which are Paid in sterling – have lost Almost one-third of Their value. "
Unfortunately this is true, But Even at a one to one exchange, 1 € in Spain goes substantially weitere Than £ 1 does in the UK. So sterling Those on pensions, although maybe not Able to spend As They Can Still Before they did live. As with many of us, you Just Need to Cut Back Where you can. And I am sorry to say, you can not Always expect the exchange rate to be in your Favour.
"At the same time, on Their Investments Interest Rates Have fallen from around 6.5 to 1.5 per cent. To compound Their Problems, many are tied Into Spanish long-term mortgages at fixed rates much Higher, So They Are Not Benefiting from Falling Interest Rates. "
I would be interested to see WHERE this information from flesh, as a vast Majority of mortgages are variable rates here in Spain. In most cases Euribor + anything from 0.5 to 2%. Yes mortgage rates might Not now be as low as They Are in the UK, That is due to the rates sent in Brussels and the resilience of Spanish banks, except for one Which savings banks in central Spain, Have not needed to Rely on the central Government for survival.
"There are now an Estimated one million surplus homes on the conspicuously over-concreted shores, many of them purpose-built for the British market, But estate agents are closing down All Along the coast. "
The figures in Regards to 'surplus' Are Not Clearly homes documented. Although There Are Currently Estimated surplus 55.000 homes in the province of Malaga Where the Costa del Sol is located. According To most Knowledgeable people figures range from 700.000 to 1 million surplus properties in all of Spain.
"And as the only buyers are speculators audaciously making low offers (50 per cent of the Asking price is Not untypical), the villas and apartments for optimum prices expats Bought Recent During the property boom – Their Belief in the value Could only go up – Have Become Virtually un-sellable. "
Crap (technical term). Yes people are making low offers, of course. But for properties CORRECTLY That are priced for the current market, are selling with only small discounts Being made. At the end of the day a property is only worth What someone is willing to offer.
"The picture como Still more depressing When you drive 40 minutes Along the coast to the cheap-and-cheerful British enclave of Fuengirola, with STI brash, football-themed bars, and cafes serving pub grub Español
Strolling along 'Fish Alley', a gourmet thoroughfare for British stodge and lager guzzlers, it soon That Became clear the glutinous gravy-train has well and Truly hit the buffers. "
Amazingly There are quite a FEW new bars and restaurants opening Along fish alley and the surrounding areas. This is a street That Consists of only bars and restaurants. Those That appeal only to one segment of the market, and the low end of said market are bound to Have Difficulties in this climate. On the Other Hand Those That appeal to a WIDER Demographic are, If Not Thriving, Surviving at least.
"Like most of His Rivals, I is Attempting to Lure Customers with cut-price meals. 'This is the REAL deal,' His latest sign reads. 'Fresh Icelandic fish, fresh chips and mushy peas – only € 7.50. '"
€ 7.50! Sorry this is vastly overpriced for one dish. Similar dishes Can be found for € 5 and 3 course meals for € 8 or so.
"'Business was fantastic at first," Mr Hill said mournfully. 'We only needed to open from 6pm till 10.30pm, and we would get 90 customers. Now we open for 13 hours a day, and we're lucky if we get 30. "
Again I am sorry. Anyone with a catering background knows That long opening hours are the norm. Also When Located in an area with a lot of competition, You Need to differentiate from your competition.
This Is No Different For anyone looking at selling a product, service or property. You need to be competitive. If you are the only Offers are getting low, maybe your prices are too high?
Regards
Andrew Belles
About the Author
Andrew Belles is a real estate agent, working for Arriba Estates in Fuengirola on the Costa del Sol, Spain.
Antequera, Antequera Malaga, Antequera life, Antequera shops
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