Property in Spain - Lifestyle vs. Investment

Property in Spain - Lifestyle vs. Investment

The middle of 2015 marked the full return of the Spanish property market. Recovery has been strong across the country and the Brits are once again, flocking to Spain.

As sales increase and more buyers turn their attention to life on the Costa’s, it’s important to know what it is that is driving these numbers up. Why are so many people now focusing their attention on Spain?

As it stands, there are currently as many as 800,000 British expats living in Spain. It’s no great surprise that buyers are wanting a property for their own personal needs, but as the demand for buy to let increases across the UK, is this fever spreading to Spain and other European countries too?

We’re certainly finding that whilst the owner-occupier/second-home market is flourishing, the number of investors buying in Spain is continuing to soar.  

Whilst investors are looking for the same attributes that one would look for in a second home, they’re also looking at the rent-ability of the property too. Whether buyers are searching for a property for lifestyle or investment purposes, here we’ll look at the benefits of both: 


Lifestyle

• A second home to escape to during the peak summer months (and the cold winter ones too) is undoubtedly the number one reason why so many of us look at purchasing a home abroad. Whether it is to be used as a holiday home or whether you have intentions to live there long term eventually, the ease of knowing you have a sanctuary you can visit at any time to suit is a luxury.

• Many of the key areas of Spain have major airports that are easily accessible. With daily flights available from and to the UK, it is just a 2 hour plane journey between the two countries. Spain’s ideal location is popular with Brits knowing that the UK is just a short journey and they can return at any time should they need to.
 
• The climate is obviously a big factor for most people when searching for a second home. Unsurprisingly, studies have shown that the Costa Blanca is one of the healthiest places to live on Earth. The clean air and hot temperatures are resulting in people living longer lives and enjoying a much better quality of life – proof that moving to Spain can literally improve your lifestyle.

Investment

•  Having suffered at the hands of the economic crisis, the overseas market has made a strong recovery and is continuing to get stronger by the day. By investing now while prices are low, investors could see large returns in the future. Investing in property can be a game of timing and forward planning – something experienced investors have already taken advantage of in Spain.

•  April is set to see additional stamp duty charges levied on second homes. Aside from predicting that landlords will seek to recover this charge via other means, experts have also predicted a flurry in overseas transactions. Property abroad is exempt from these new changes and is just another reason why investors are turning their attention to Spanish buy to let property.

•  Rental demand in Spain has been on the increase since the start of its recovery over 18 months ago. The number of long term lets is rising and average yields sit at around 7.6% in some areas of the country – a great opportunity for investors to be grabbing with both hands.

One final factor that will benefit anyone looking to purchase in Spain – since the financial crisis, the Spanish government has introduced new laws that protects buyers with their property transactions should any developer or housebuilder be unable to fulfil their contractual duties; a major plus point for any of those who suffered as a result of the economic downturn.

Remember, a Spanish property purchase is a fantastic investment opportunity, whether you are buying for yourself or to let out. The market has recovered remarkably well and the property market is only just beginning to boom so good things are certainly on the sun drenched horizon.

Join our mailing list:

Leave a comment



Latest Comments

Tony Gimple
Tony Gimple 09 Dec 2017

Linking professionalism to limited company borrowing is a flawed concept. Despite S24 etc., limited companies are the most tax inefficient way of running a property business and leave borrowers seriously...

view article
Evelyn Attwood
Evelyn Attwood 01 Dec 2017

It's normal. If you plan to buy a house in one of the most beautiful spots in the country you should pay a high price.

view article
Evelyn Attwood
Evelyn Attwood 01 Dec 2017

I think that the situation will be the same at December.

view article
Scott Garnet
Scott Garnet 06 Nov 2017

If you have a patio or a porch it is important to make sure that any connecting doors are secured. Good advice for sliding glass doors is replacing the panels with storm resistant glass and getting heavier...

view article
richardrawlings
richardrawlings 01 Nov 2017

What has not been mentioned here is the effect of not only higher interest payments, but also that these payments are less likely to be offsettable as a business cost due to the scaling back of mortgage...

view article
Kelvin Lloyd
Kelvin Lloyd 09 Oct 2017

IT is up, to the Planners. If they will only give permission for bungalows on certain (suitable) sites, they will be built.

view article
maggie swift
maggie swift 09 Oct 2017

It's just the beginning of the shocking rise.

view article
maggie swift
maggie swift 09 Oct 2017

I have recently read that the bungalows can provide social housing for elderly residents in London.

view article
zoe glover
zoe glover 05 Oct 2017

Update! Worst company I have ever dealt with. Undervalued a Cambridge property by over 100k, wont take on any evidence of valuation including a RICS valuation done 3 years ago for the very same value...

view article
Paul Edwards
Paul Edwards 27 Sep 2017

Its nonsense articles such as this that make it harder to get clients to realise just how difficult the market is out there. When you see Rightmove and there are more 'price reduced' then 'new' most days...

view article
Tom Allen
Tom Allen 20 Sep 2017

Absolutely agree with you!

view article
RyanGeo
RyanGeo 18 Sep 2017

A sharp correction would be a less dramatic expression to use. That is already underway in certain sectors in Reading where I practice as Chartered Surveyor

view article

Related stories

More articles from Graham Davidson