Property Investment In Spain...

Ah, Spain…With its bull runs, famous beaches, sparkling nightlife and amazing history, there is enough here to captivate any tourist and make them stay forever. It is no surprise that sunny Spain continues to be a favorite amongst overseas investment property owners worldwide. ‘The Economist’ claims that Spanish property prices had seen an appreciation 3 times that of the European average in the period from 1995 to 2002. Over half a million Britons have invested in this potentially lucrative market, amongst the 3 million foreigners that call Spain home.

It is not merely Spain’s easygoing lifestyle and European-standard infrastructure that attracts investors. Poor performance of equity markets and pension schemes promotes demand for overseas investment property. A million more new residents are expected in Spain over the next few years and the market gives indications of being firm. New developments and older properties are widely available. Off-plan property investment still offers good returns in Spain, provided you pick the right location. Further, prices in the market overall are lower than many other countries like the UK or US, making the investment accessible to a younger buyer or to seekers of investment property pensions. The rental market in Spain is sizeable, with tourists searching for self-catered options. This can provide the owner of a buy to let property with funds to pay off installments and even make a buck.

Whether your interest in Spain comes from a desire to earn through an investment property pension or simply live in paradise when you retire, there is a place for you under the Spanish sun. The most popular destinations are Costa del Sol, Costa Blanca, the Canary Islands and the Balearic Islands. While these are crowded and expensive, some analysts say that prices in this region may fall in coming years. However, there is a rise expected in the southern interior, with its gorgeous villages full of snow-white structures against brilliant blue skies, and in the northern interior, a place full of charm and character. Pastoral areas such as Catalonia and Galicia as well as urban developments such as Barcelona, Granada and Seville are fast becoming hotspots for buy to let investors or those seeking property development opportunities on colonial houses.

With increase in air traffic, more low cost airlines available and better road infrastructure, the tourist inflow to different parts of the country is rising. While a couple of hundred thousand dollars cannot buy you much on the popular coasts, you can purchase a great place in beautiful Granada, an hour and a half drive to Costa del Sol.

When buying property in Spain, factors to consider are:

1) Make sure you understand the local rules and regulations. Find a reliable agent who offers overseas investment property but be sure to shop around for quotes.

2) There is a lot of potential in widely available, wonderful historic houses for property development to increase the value of your house, but be warned that renovation in Spain can take longer than planned.

3) The true value in the Spanish property market is not in quick turnaround but in a solid long-term investment, so look for something that will stand the test of time.

4) When you buy off-plan investment property, the prices rise as the project approaches completion. If you choose to sell at this time, you may not pay capital gains tax. Most people buy to let in Spain, especially if they are overseas investors, so look for a great USP in your selected property that can be used to attract tourists. That is why I opted for Tres Molinos!