The Alicante Real Estate team would now like to provide you with monthly updates on the economy, inflation and changes in the property market.
The pandemic of the coronavirus (COVID-19) has created major challenges for the economy. The pandemic triggered unusually large changes in household spending patterns.
Various sources report imminent inflation. Like the world-renowned magazine "The Economist" or Prof. Dr. Dr. Hans-Werner Sinn explains in a very understandable way what will probably happen to our money in the future, due to the questionable policy of the ECB. (European Central Bank).
However, the dangers of this policy could become apparent when the Corona crisis is overcome and the economy picks up again. If inflation then starts at some point, it can no longer be stopped. Still, the economist hopes that things will at least not be as bad "as they were after the First World War".
By the summer of next year, the ECB will have bought a total of more than three trillion euros of paper from public institutions with freshly printed money. It cannot return these papers to the market, because then their prices would tumble and the interest rates that the states have to pay would go sky-high."
This would not only lead to the bursting of a bubble in bank balance sheets and a subsequent bank death, but would cause major problems for over-indebted euro states. Sinn assures: "There is no reverse gear, we can hardly get off this track. We are running into a permanent regime of extremely low interest rates, which threatens to unload one day in the form of inflation. If that happens, all hell will break loose."
The crisis year has also driven up gold prices, making it even harder for investors to find a safe investment. Because of the ECB's policy, everyone runs the risk that our money will soon no longer be worth what it is today.
We expect prices in Spain to rise soon, and not insignificantly, as soon as the vaccinations and protective measures take effect. When things return to normal, property prices will rise again. Alicante Real Estate has the experience and the statistics to make a profitable decision. Then, when prices have risen accordingly, we will offer to sell the property at the right time.
If you think of new construction, it is even better, because here there are no renovations and the property has corresponding guarantees from the developer, also new construction properties in exclusive locations can be rented out very well.
My answer to the client's question was, invest your money through Alicante Real Estate and we will help you make a good investment.
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