THE PRICE IS RIGHT FOR INVESTMENT
Whenever we buy property we are always looking at the “PRICE”. Yes we may want that house but if the bank balance doesn’t allow for it, it won’t become ours by just wishing! Looking at property for investment purposes we need to have a different approach. This is where we need a mind over matter, head over heart way of thinking.
Buying for investment needs good research, good information and good advice. If you are already an investor you will be aware that buying today doesn’t mean that you will get an immediate return on your money tomorrow. Remembering of course that market values can go up and down.
Buying in the Spanish Property Market is fundamentally no different than buying in the UK market. Look for high quality property in a good location. The British Press over the last few years have been falsely reminding us that the bottom has fallen out of the market and buying there is a gamble with prices so low ( they chose not to mention prices in some areas remained stable and indeed rose and still sold on some developments!) In reality what has happened is that some properties which were really over-valued became available in the more affordable category. Many clients particularly from other countries took advantage of this and went ahead and bought. Now prices are on the move again.
What is happening in the Spanish Property Market?
In certain regions of Spain prices have risen more sharply than others. For example in Navarra in the first few months of 2016 prices rose by 1.80% whilst in Aragon it was 27% – rather an important factor for an investor.
In certain major cities property prices have risen and so have the rents they command. Renting out to Spanish Nationals as long-term rentals gives a good return throughout the year. Many Spaniards still rent rather than buy.
Please remember though that there are other cities and locations in Spain with excellent infrastructures which are, however, not as well-known. Here the buying price will be much lower, with a commensurate much HIGHER return on investment.
On the Costas, seasonal rents can give a larger return over a few months of the year but may not give a constant return on your investment. Rental income is often exaggerated as a selling point.This is where a Spanish Property specialist can give active advice about securing a good return on your investment as well as knowing how to go about buying and renting out your property.
Already property prices continue to rise. For example Humphrey White of Knight Frank in Spain has predicted that prices will increase over at least the next 3 years by 6% per annum. This is on the back of growing demand from buyers and a strengthening domestic market.
Spain has had above average price changes in the Euro Zone ranking of house price changes for the last 2 years.
NOW IS THE TIME TO LOOK SERIOUSLY AT THE SPANISH PROPERTY MARKET AS AN ALTERNATIVE TARGET FOR YOUR INVESTMENT MONEY.
You May Also Enjoy
HMRC ramps up scrutiny of residential property valuations as it cracks down on inheritance tax avoidance
Renters urged to understand their new rights before major law change
The Foundation of Your Home: Why Your Subfloor Dictates Your Flooring Destiny
Almost £1.4m difference in property prices between the start and finish lines of London Marathon
Demand drops year-on-year for commercial property from high base
