The world we live in is so interwoven so much so that an event in one concrete country can lead to a butterfly effect on the economy of other countries situated thousands of miles away. According, the desertion of a member of the EU institutes a remarkable fact.
Two years ago, Britain voted to dissociate themselves as a member of the EU in a groundbreaking decision which was later sealed January 31st 2020. Ever since the effect on the Spanish Real Estate sector market has been obvious.
The Brexit generated a series of repercussions on the rest of the EU economies amongst which is Spain. Here we shall discuss some of these impacts concerning the mortgage tariffs on the Spanish real estate sector.
The Brits are by far the leading group of foreign buyers in Spain. But because of the economic consequences resulting from Brexit, there has been a downtrend in their effective actions within the Spanish territory.
Recently, an economist, Santiago Lapausa, predicted a tax increase by 5% (from 19-24%) on the rent profits on Brit real estate owners in Spain provided a sure arrangement is not reached, come December 31st 2020.
However, when a situation categorized by political unpredictability and doubt towards future economic success sets in, the sensible decision most investors consider is to wait. Functioning this way, the agent will rather not risk investing his capital abroad until he can clearly appreciate an increase in certainty and profitability within the said country.
Notwithstanding, the resulting fall in the Spanish mortgage rates, minus 0.191, has somewhat encouraged a remarkable growth within the tenement industry, and are estimated to continue in the same situation in the nearby future. Besides, the costs of properties are as well on an increase, as investments recovers. This typically offers an ideal time and or opportunity for investors as they can take advantage of the low mortgage rates to invest in the Spanish real estate sector of this market, to overcome the Brexit date.