We all want to achieve a good return on our investments. But have you ever thought about investing in a property in Spain? Due to the growth of the Spanish economy, Northern European investors consider purchasing an investment property in Spain, specifically on the Costa Blanca, more and more as one of the best investment options within Europe.
Increased property sales
Investing in real estate has traditionally been one of the safest strategies for a healthy return on your investment, especially in Spain. According to a recent report from the Spanish Ministry of Housing, property prices have risen by an average of almost 7% throughout Spain and on the Costa Blanca by nearly 15%. Of course, that is great news for investors, but even better news is that 2019 is the 6th consecutive year that property values have appreciated with prices returning to the heights of before the financial crisis struck. And values seem to continue to increase, with the Central Bank of Spain predicting a return of more than 10% on homes.
Low mortgage interest rates
There are many reasons why the time is right to invest in real estate in Spain. One of the main reasons is that interest rates are currently at a historically low level and the expectation is that interest rates will continue to remain low in the near future. If you also take into account inflation and wealth tax, you will soon be confronted with the reality of a negative return on your money.
In recent years, Spanish banks have become much easier in providing mortgages for part of the purchase price. Spanish mortgage lenders now offer a range of mortgage products. Add to that the low bank interest and you will see that it has never been so inexpensive to borrow money for a mortgage, making purchasing an investment property in Spain even more interesting. Now, doesn’t it makes sense to just relax on the Costa Blanca, lie in the sun on your sunbed by your own swimming pool?
Holiday rental
A scenario that is becoming increasingly popular with foreign investors is purchasing an investment property in Spain for the holiday market. Thanks to cheap airline tickets, affordable prices, good weather and the Spanish lifestyle, the Spanish holiday market continues to grow. Which makes investing in a holiday home in Spain an attractive option if you want to invest safely. You can let out your Spanish holiday home to tourists through holiday rental websites such as Airbnb and booking.com. This is a great way to achieve a return on your investment and to recoup recurring fixed costs for things such as maintenance and property tax. Provided you approach it correctly and know what rules apply when renting out your holiday home.
Avoid headaches
The Spanish real estate market does have a number of peculiarities and if you are considering investing in real estate, it pays to have guidance from a partner who is knowledgeable about the Spanish state of affairs. The House Doctor Costa Blanca takes care of the entire process from purchase, construction and project management to the furnishing and interior design of your home on the Costa Blanca. We have reliable local partners for taking out insurance or mortgages, property management, and if desired rental companies. Do you want to know more about purchasing an investment property in Spain? Don’t hesitate to contact us and together we will find out what your options are and what suits you best.
