In Spain, the crisis was generated by long term loans, the building market crash which included the bankruptcy of major companies, and a particularly severe increase in unemployment, which rose to 13.9% in February 2009.The cause of the European debt crisis, in its simplest form, was overspending by (mainly southern) European governments during the last decade, and especially after the 2008 financial crisis. The ECB (European Central Bank) enabled artificially low risk premiums on interest rates of government debt belonging to the so-called PIIGS countries (Portugal, Ireland, Italy, Greece and Spain). And these artificially low rates facilitated and encouraged the overspending.
It sounds all doom and gloom as the whole world seems to be amidst a crisis in some form or other and its hitting the general public from all sides. At the moment it’s a domino effect, most of us need to work to pay the bills. Some people are more affected by the crisis than others, dependant upon where you live and your lifestyle. Unemployment is still severe and that in itself affects the way that you live, or can live. Cutting corners, saving money where you can may help, but for many being unable to pay the mortgage has left them homeless.
The cost of living in Tenerife compared to many other countries continues to be lower, even amid the Euro debt crisis. Costs of Amenities such as Water, Gas and Electricity are still lower and there are little or no heating bills. Although prices have risen slightly, costs for running, insuring and taxing your car is still cheaper here, diesel and petrol are 30 cents cheaper here per litre whilst the UK has the twelfth highest unleaded price in Europe and the second highest diesel price.
There is no doubt that people are wary right now and are certainly having second thoughts about investing in property, it can be risky, especially during this time of crisis! Right now, Tenerife is still a great place to invest. The island can offer such a range of luxury apartments, villas and houses which can be used as holiday homes, first residents, or even as a future investment. There is still a demand for properties. People continue to come to Tenerife as spending is lower than it is in the UK. Property sells here and property is still one of the most profitable places to invest in!
Tenerife with its mild weather during the whole year makes it an attractive place to live with no seasonal restrictions. This ensures that demand for rental property is high all year long which is not true in other parts of Europe and living in Tenerife is one of the best options for retirement. We all know, what a difference good weather means for our health.
You only have to make yourselves a wish list and we are sure Tenerife will tick all the right boxes so despite the on-going crisis, aim for a great lifestyle, good weather, delicious cuisine from high quality schools to excellent Health-care. Tenerife has it all if you are looking to invest in property put the crisis out of your mind and come live in paradise!
This article is simply an overview of a very complex subject. If you have any questions regarding the property market in Tenerife, good areas for property investment in Tenerife, or concerns about purchasing, please contact us and we will be happy to help.
Sunway Tenerife have over 25 years experience, please call for more information about buying Tenerife Property. Sunway staff are available to offer you a wide and varied selection of property across the south of Tenerife as well as one of the most professional services on the island!
Spain saw its borrowing costs leap to a nine-year high this week as the euro zone debt crisis continued to dominate the financial markets whilst more than £5bn was wiped off the value of three of Britain's biggest banks on Monday as global financial markets took fright at the deepening crisis in the euro zone.
The European currency is facing the biggest crisis of its 12-year existence, threatening major economies such as Italy and Spain after three small members (Greece, Ireland and Portugal) needed financial rescues. Tenerife has been affected by the crisis in a number of ways: Rising costs across the board and heavy unemployment. The island relies on tourism for its main source of income, restaurants, hotels and stores etc. Luckily, tourist numbers haven’t dwindled. Many more Russians are now coming here to holiday and buy property as they have money to spend and their economy is good. In fact, recent figures show that tourists visiting rose to more than 1.258 million in the first three months of 2011.It sounds all doom and gloom as the whole world seems to be amidst a crisis in some form or other and its hitting the general public from all sides. At the moment it’s a domino effect, most of us need to work to pay the bills. Some people are more affected by the crisis than others, dependant upon where you live and your lifestyle. Unemployment is still severe and that in itself affects the way that you live, or can live. Cutting corners, saving money where you can may help, but for many being unable to pay the mortgage has left them homeless.
The cost of living in Tenerife compared to many other countries continues to be lower, even amid the Euro debt crisis. Costs of Amenities such as Water, Gas and Electricity are still lower and there are little or no heating bills. Although prices have risen slightly, costs for running, insuring and taxing your car is still cheaper here, diesel and petrol are 30 cents cheaper here per litre whilst the UK has the twelfth highest unleaded price in Europe and the second highest diesel price.
There is no doubt that people are wary right now and are certainly having second thoughts about investing in property, it can be risky, especially during this time of crisis! Right now, Tenerife is still a great place to invest. The island can offer such a range of luxury apartments, villas and houses which can be used as holiday homes, first residents, or even as a future investment. There is still a demand for properties. People continue to come to Tenerife as spending is lower than it is in the UK. Property sells here and property is still one of the most profitable places to invest in!
Tenerife with its mild weather during the whole year makes it an attractive place to live with no seasonal restrictions. This ensures that demand for rental property is high all year long which is not true in other parts of Europe and living in Tenerife is one of the best options for retirement. We all know, what a difference good weather means for our health.
You only have to make yourselves a wish list and we are sure Tenerife will tick all the right boxes so despite the on-going crisis, aim for a great lifestyle, good weather, delicious cuisine from high quality schools to excellent Health-care. Tenerife has it all if you are looking to invest in property put the crisis out of your mind and come live in paradise!
This article is simply an overview of a very complex subject. If you have any questions regarding the property market in Tenerife, good areas for property investment in Tenerife, or concerns about purchasing, please contact us and we will be happy to help.
Sunway Tenerife have over 25 years experience, please call for more information about buying Tenerife Property. Sunway staff are available to offer you a wide and varied selection of property across the south of Tenerife as well as one of the most professional services on the island!
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