20.05.09 18:18 Age: 1 yrs

Spanish government announces measures to stimulate the property market

By: Anne Bayne

The Spanish Prime Minister José Luis Rodríguez Zapatero announced that mortgage relief will be limited after 2011 – a measure to stimulate the property market.

Residents with an income of 24.000€ or more can’t deduct their mortgage on their primary residence when buying after 2011. Zapatero hopes that this measure will motivate potential buyers, who are waiting now because of the weak property market, to make the step earlier and buy a property now. The property portal Idealista.com calculates that a buyer, assuming that he has an income over 24.000€ and buys his property after the beginning of 2011 with an average mortage of aprox 123.000€, will loose about 30.000€ which would had been credit by the relief if he’d buyed before. The G14, the group of the biggest builders and developers in Spain, welcomes the measure and believes that it will help to stimulate the market.

Sources: Elpais.es, idealista.com