Well, this great video sums up in a terribly funny way how did Spain got in such a mess. Oh, and it really happened that way, this video is not only funny but also true.
Ever since I arrived in September 2008, everyone around me has been talking a lot about the crisis. And I realised that in fact, Spaniards and expats alike, we do not really know how did it happen exactly. Yeah, of course, we all know it had to do with the real estate and construction crisis, bad debt, and surely because of corrupt politicians. But you know, no one could really explain clearly what happened and what did we have to do differently for it not to happen again.
More than 2,000,000 views and yet, most people keep thinking renting is wasting money, or that the price of their flats will keep on increasing every year after this strange period ends: « Real estate prices never go down ». Wrong – in fact, the consensus in Spain is that prices need to go down another 15-20% at least and that like any other market, it has cycles.
Is is the right time to buy ? This depends on your objectives and where exactly you want to buy. I know I have clients right now who are wanting to buy, and for whom I am obtaining great prices (equivalent to before the bubble: 2001), with high rental yields.
For more info on the current state of the Spanish Economy, or any « Moving to Madrid information », do not hesitate to send me an e-mail. And please feel free to comment, I will answer any opinion or question!
Yours madridly,
Pierre
PS: if you feel like digging in a bit more, here is the site of the maker of the video:
https://estepaissevaalamierda.wordpress.com/ Spainistan – From the real estate bubble to the crisis.