Property in Spain - Lifestyle vs. Investment

Property in Spain - Lifestyle vs. Investment

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Graham Davidson | Sequre Property 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.

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Latest Comments

AbbieP.
AbbieP. 22 Jul 2016

"While house prices in the most expensive eleven boroughs have declined values in the cheapest eleven boroughs continue to rise" - not a nice way to even out the price range. London is overrated as it

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AbbieP.
AbbieP. 21 Jul 2016

And try to profit from your decisions, I may add

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CommercialTrust
CommercialTrust 19 Jul 2016

Retirement investment has always been one of the biggest draws of buy to let. And the buy-to-let demographic is, on balance, older. (Over a third of our applicants are over 50 at the time of application.) It...

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Forrest Wheatey
Forrest Wheatey 11 Jul 2016

I find the time perfect for ever home-owner wannabe. Prices should slowly, but steadily drop, at least for the inner buyer. Making it harder for outsiders to buy properties (the whole Brexit thing means...

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property guru
property guru 11 Jul 2016

Why should Ajay even have to be looking for it. It should be public knowledge. Why is not just publish each years and to were it is and be AUDITED. Accountability.

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property guru
property guru 11 Jul 2016

Surprise suprise

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CommercialTrust
CommercialTrust 30 Jun 2016

This is great news for buyers and investors in a period of significant uncertainty. The 10-year buy-to-let fix at 3.99% in particular is excellent, a clear 100 bps ahead of the nearest competition. Though...

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Lee
Lee 30 Jun 2016

Let's see what happens to north-east property prices when Nissan announce they're leaving.

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DmitriKara
DmitriKara 29 Jun 2016

I just read another article about eviction rising and this was exactly what was on my mind, Housing has become "cat and mouse"...

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DmitriKara
DmitriKara 29 Jun 2016

I am really not surprised. I've seen one too many impudent tenants and in my humble opinion renters have one too many privileges and options to abuse heir landlord in so many ways...

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DmitriKara
DmitriKara 29 Jun 2016

There is still so much uncertainty and I will surely step back and see what's happening before I could make any decisions on my end.

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ChristinaReedUK
ChristinaReedUK 20 Jun 2016

I don't understand why it's always a war between the two sides. Either, way the landlord is probably keeping a detailed inventory and will see the changes you've made. I just don't understand why there...

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