angiescarr

It's interesting to see what seems to me a small upturn in the numbers dipping their toes in some and throwing themselves fully clothed (you need to be at this time of year) into living in Spain. Is it because of the upturn in the value of the £ or because people think there is nothing left for them in England? Has the flow of repatriates slowed down similarly?

amideislas

Don't know, but interesting point.

There seems to be a general 'belief' that everyone is migrating back to the UK - not that I believe it, but I haven't seen much evidence that there's more expats coming this way either.

Having said that, if I had to guess, I'd probably tend to believe there is indeed an upturn in expats.

The UK is doing well, the pound is obviously gaining strength, although I find the high dissatisfaction in the UK rather confusing. I reckon that's due to the elections. Things are demonstrably looking very good for the UK, but if one listens to the political rhetoric, you learn that the UK is actually an economic disaster and everybody's going skint.

But perhaps that perception is yet another motivation to leave the UK for "greener pastures"... like Spain.

johnnyone

The strengthening pound is certainly making not only property prices but the overall cost of living in Spain look attractive. I am sure if the pound strengthens further or remains at its current level there will certainly be an upturn of expats.
Also from April when access to pension funds is freed in the UK I can see a lot of people drawing substantial amounts down to buy in Spain without having to sell in the UK.
As an aside and I can only judge where I have a holiday home but there are some green shoots appearing based on new bar and restaurants opening, although the town did not seem to suffer as much in the crisis as other areas.

casa del sol

People having lump sum access to their pensions from April, add to that the improved exchange rates will give people that want to better opportunities to buy in Spain. Caution, not saying cashing a pension is always a good idea financially. Buying does not mean living there permanently, as mentioned many times, to live in Spain requires independent means, usually retired, jobs are very few and far apart, unless working for rich Brits. The new Spanish 'whole of the world' tax rules I imagine would deter some Brits from living there full time, will wait and see.

Most ex-pats live in the coastal areas of Spain close to other Brits, moving there to enjoy their retirement, therefore people will always be coming and going. I wonder what the average time is spent living full-time in Spain? I would imagine all going well about 20 years at a guess, if that.

Porth

We are returning albeit in a long let villa. We are reluctant to buy due to the ageing process. We have always whilst living in France kept a bolt hole in the UK nothing will change. We are persons of a certain age and excitement risk took place some time ago when buying in France.

There are of course numerous advantages of living in Spain and well-known to all. For us one of the added attractions is the exchange rate. Last week we shipped funds at 1.341 but this morning it is dropped perhaps whilst Greece is digested.

If Greece fails to budge and to accept what Germany says then the press here this morning suggests that Spain and Italy with its left wing parties will perhaps win the next elections. If the EU blink there will be two other countries knocking at Brussels door.

Imagine a return to the peseta -unlikely but?

Again those who wish to sell in Spain and are successful are faced with a down side in the rate and thus need to use more euros to buy the same £'s.

It is difficult to get on the housing ladder here and indeed the general feeling is that the UK housing market is slowing and very much so.

As to the pension relaxation. Who knows but press speculation over months suggests that there will be a wholesale taking of funds and investment in all sorts of things.

Is that what the citizen of the UK will do (depends of course upon their pot) but Brits being Brits I do not see them easily buying houses in either France or Spain - they will wait a while. Yes perhaps a new extension here and there a new conservatory but a major purchase perhaps not.

Hey what do I know I am either a banker nor an economist.

My comments simply reflect my wide ranging thoughts.

Porth

There is an interesting article in on-line Daily Telegraph this morning as to taking money from ones pension pot. Allegedly one in three people will take holidays. Then there is the tax angle for if one takes a lump sum will push certain individuals into the 40% tax area

Better it seems to take it in tranches. Perhaps this destroys the argument of lots of £ going either to France or Spain?

The euro rate has dropped marginally this morning so inertia will be around for a while and not much movement. We shall see and every day the nice Moneycorp send me emails and keep me in touch with developments! I am not George Soros.

amideislas

Your comments are not at all off the mark.

I believe Europe is in a very dangerous phase. In it's left-of-center ignorance, Europe has all but ignored the serious political ramifications of its choice to penalise the population over relief, and the days of reckoning are just beginning.

If you think Europe has problems now, just wait till the last remaining democratic option available to the population brings Europe's economy to its knees. And if you'd be amongst those (righteously) angry enough to be convinced that going even farther left will somehow make it all better, then I have a miracle tonic to sell you.

We shall see...

stuboy

'Podemos' will be watching the Greek negotiations very carefully I suspect.

Just how popular are they?

Horlics

Lots of Greeks in the streets yesterday. If their new leaders decide to leave the Euro and default, the next time you see them out in such numbers they'll be in lines, in front of the banks' doors.

Porth

how true when the euphoria of yesterday subsides and the alcohol was worn off they might now start to take what money they have out of the banks.

The EU will drag this out

we shall see

amideislas

I have a close friend who works in international banking. No, not some banking executive, she's just an assistant. They deal with all kinds of B2B clients who conduct trade all over Europe.

Anyway, she told me that late last week, that an advisory was posted by various agencies in Greece and Cyprus, that there is a high risk of either a run on the banks, or freezing of assets in Greek and Cypriot banks, and was advising clients to transfer any significant assets out of those jurisdictions ASAP.

It's not pretty.

johnnyone

You should ask your friend about Goldman Sachs involvement who massaged (fiddled) the figures that allowed Greece to join the euro. Perhaps they should cough up a few billion for their negligent advice.
Greece have/had a massive massive problem with the level of public sector costs but also it's level of tax evasion. They need to get a grip with both of those.

stuboy

I wonder how many economists (not German) secretly hope that Greece jumps ship.

One view is that without Greece the EU will be stronger. The danger of course is how to stop the spread to other countries with strong anti austerity parties.

Porth

Then what value drachma and peseta. I do not think they will be flavour of the month. Then and just thinking out loud if Spain does go down the route of Peseta then a run on the banks?

Is it just one of those things but in both Spain and Greece there are allegations of corruption and armies of civil servants and they are adverse to paying tax.

Is this a Latin thing?

stuboy

I think it was John Snow that (a few years ago) wrote an article about the work ethic in Greece. I believe he owned a house there at the time and may still do.

He told tales of public servants who hadn't actually been to work for years preferring to collect a state salary and work on the black. He went on to talk about the level of corruption in Greece's regional and national government. A great article, I'll see if I can find it.