Property investment in Spain (the home buyers choice)
Every year more and more foreign buyers are looking for property investments in Spain. Demand has been rising steadily since as far back as the 1980’s. In 2005, 30% of investors came from the UK. Spain has always been a favourite with the British. There are now over 1.1 million holiday homes in Spain and on the Canary and Balearic Islands. Half of these are owned by British people.
Property Investment in Spain (options)
Off plan and buy to let investments can be incredibly lucrative (if properly researched), off plan in particular.
With off plan investing buyers purchase property in a new development at a low price and normally sell it at a profit when the development is finished or sometimes prior to completion.
It’s suitable for anyone who wants to make the most out of their investment and doesn’t need to live in it immediately. With off plan investments you can make big profits and you’ll only need a small mortgage.
Buying to let is where buyers purchase a property solely to rent it out. Ideally, the rent should cover the cost of your mortgage leaving you free of any financial commitment to the property. It’s very important to study the rental potential of the property and surrounding area before going ahead.
Why choose property for sale in Spain?
Spain is an incredibly diverse country. It’s a land of fantastic contrasts – with snow capped mountain peaks, endless sandy beaches, warm sunny climate and a very very relaxed way of life. Quite simply, living here is easy.
Apart from having one of the lowest mortgage rates in Europe, Spain has a spectacular landscape; good infrastructure; delicious cuisine; excellent nightlife; and fascinating architecture. It’s a paradise for nature lovers and a Mecca for all types of land and water sports fans.
Low-cost airlines are bringing Spain to your doorstop – at ridiculous prices! A return ticket can cost less than the fuel it takes to drive from London to Birmingham and back! It’s now cheaper than ever to get here. These low-cost airlines offering flights to Spain from just about any part of Europe are a major benefit for people who own investment property in Spain. It’s also a major benefit for Spanish tourism.
With all this on offer, a property investment in Spain is generally regarded as a very safe option.
Buying a property in Spain
Nowadays, buying a property here couldn’t be easier. There’s plenty of English speaking agents and the whole process can be completed within a matter of weeks.
The process itself is very straightforward. First you need to establish your budget – a realistic budget; there’s no point at looking at properties you can’t afford.
If you’re getting a mortgage in Spain you’ll be offered 70% of the purchase price of the property. It’s highly advisable to get a “Residencia” (Residence Card) as soon as possible. With this you’ll be offered a loan of 80%.
Some of the banks in Spain base their mortgage offers on the valuation of the property as opposed to the purchase price. So, if the valuation price is a lot higher than the purchase price you might be able to secure a mortgage for up to 100%.