The Latest Spanish Property News from Kyero.com

Last week, Sterling dropped to an all-time low against the Euro. As I write this, a 100,000 Euro property will cost you a few pence short of 86,000 pounds. Last week, the same property would have cost just 78,000 pounds - approximately 10% less.

The BBC reported that Sterling has fallen dramatically against the US Dollar and the Euro, and The Guardian suggested that now is the perfect time for Britain to adopt the Euro:

"The last, best and most palatable option is to join the euro, and fight a referendum campaign on it being our get-out-of-jail-free card. Inside the euro, both the government and the City would be able to sustain the spending and lending necessary to avert recession. The competitive level at which we would join would boost industrial exports for a generation."

"Importantly, at the moment, the five tests for entry set by Gordon Brown are all met 100 per cent. Britain and Europe's economies are in perfect synch as we enter recession simultaneously. The labour market is flexible. Entry would attract much-needed inward investment, and save the City. It would boost growth. In economic and political terms it would be a masterstroke. Britain would become a member of a reserve currency zone at a competitive level, offering us a key role in the emergent debate about the governance of globalisation and the international financial system."

Whatever your views on the merits or pitfalls of Britain joining the Euro, Sterling seems to be in a hole - and the hole is getting deeper. Clearly, converting Sterling to buy anything in Euros just got a lot more expensive.

If you are contemplating purchasing a property in Spain worth hundreds of thousands of Euros, the extra cash you now need represents a significant hike in an already difficult market. There is a ray of hope, however: Look for property being sold by Brits who want to repatriate the proceeds of the sale in the UK.

Now is a great time to be buying Sterling with Euros. From an all-time high of around 1.5 Euros to buy 1 pound, now it only costs 1.16 Euros per pound. For Brits selling property in Spain, they can now drop their price a further 10% - without losing any money at all once the proceeds are used to purchase Sterling.

This is good news for buyers who already have Euros, but what about buyers who are stuck with Sterling? The trick is to find a British seller willing to conduct the entire transaction in Sterling. As reported earlier this year, it's legal and it will certainly remove most of the sting of Sterling's recent tumble against the Euro.

Martin Dell, Kyero.com

Is any property below €50,000 a cheap Spanish property? Are cheap Spanish properties only to be found at auction or as bank repossessions? How much below market value does a Spanish property need to be to be considered cheap?

Continue reading: What IS cheap Spanish property?