Is Spain still a Property Investment Goldmine
Yes.
Consider.The dynamics of the market in Spain are unique.
EU money has let Spain invest in its infrastructure and now boasts some of the best-integrated transport systems in Europe. 500 thousand Brits alone go to play golf there every year.
Some 11 million visit the Costa del Sol alone every year. Some surveys estimate that 2 million northern Europeans will make Spain a permanent home over the next 5 years. 320 days of sunshine, world-class golf courses and beaches also help.
The higher standard of living and the lower cost of living combined with cheap, quick and regular flights will ensure that Spain’s property boom will keep going for the foreseeable future.
Spain after Florida is the most popular tourist destination in the world.
It all points to a steady demand for rental properties and therefore a continuing rise in the demand for properties along the Costa del Sol, Costa del Blanca and increasingly inland.
For serious investors who are not just looking for a home in the sun, the Costa del Sol is proving to be one of the most lucrative property investment markets in the world. Many investors, private and professional, have achieved gains in excess of 50% on money invested within 12 to 18 months.
Investing In Property In Spain For Capital Growth
With world-wide equity markets still relatively unstable, and well below previous levels, and a general reluctance to
invest in stocks, shares and pension funds, investors are seeking alternative vehicles and products to enable them to
maximise returns, both in terms of capital appreciation and income.
The property market in Spain offers investors the perfect solution. High quality rental property will always be
in demand in Spain - for the two simple reasons. The Sun and the affordablity of travel to the Costas
Regardless of economic ups and downs, there's one thing you can always depend on; one single, unchanging factor that no
expert from any bank, government agency or firm of stockbrokers can argue with. The UK and the rest of Northern Europe's
dismal weather is not going to change to any appreciable degree in any of our lifetimes. Southern Spain and the
Costa del Sol, meanwhile, continue to enjoy mainland Europe's best climate and bask in sunshine virtually all year round.
More and more people retiring early discover that it's not that easy to pursue a healthy, leisurely lifestyle when it's
pouring with rain nearly every day of the week! Golf, al fresco dining, a dip in the pool or a walk on the sea front are
not readily available in most Northern European cities. So, why live in Birmingham, say, when you could just as easily and
more cheaply own a property in Marbella?
Ever since the European Community instituted complete freedom of labour, movement and capital within its territories, the demand
for Spanish property, villas in Spain and apartments in Spain has grown at unprecedented levels.
Now that there are no barriers to living and working here, it seems that rather than northern Europeans just buying a
holiday villa or apartment in Spain, the population is starting to migrate here on a wholesale basis! Once you take away the
obstacles to population movement, naturally, everyone gravitates to the area with the best climate and most attractive, healthy
lifestyle.
It’s a matter of lifestyle demographics, not economics. It's no accident that people talk about the area being
the 'California of Europe'.
Anyone who knows the coast will confirm that most of it is backed by impressive and beautiful mountain ranges which are a
massive impediment to further building. The shortage of available building land between the mountains and the sea means
that land prices must rise with further population growth.
As far as we know, and hope, Mother Nature doesn't have plans to create any more land in this area...
Whether or not your share portfolio is making you any money there's not really much enjoyment you can get out it. In contrast,
reading the share prices every day on the crowded 7.15 to London Bridge or watching the rain pound on the conservatory roof
is more than likely to give you high blood pressure and depression and certainly won't make you any healthier.
A Spanish property, a villa in Spain or apartment in Spain, however, is a much more enjoyable proposition. And even if the
value of your investment is not going up in the short term, you can still sit on your balcony, terrace or patio soaking up the
Mediterranean sunshine!
Many clients have built a portfolio of rental properties which on average see them attain a net yield of 6-8% p.a. Due to the
popularity of Spain there appears to be an endless stream of clients looking for quality long term and holiday rentals. There are
those people who will move to the area and rent for longer term before committing to their own purchase & there are always
people who would love to own but finances do not allow so.
Holiday rentals continue to grow as the space and independence of a beautiful modern apartment makes more sense than hotel rooms.
This type of rental is available not only in the summer months but throughout the winter, as the golfers come to play. It is also
bolstered by clients from Northern Europe escaping the harsh winter in their own country to enjoy the mild climate here.
Some of our clever investors have seen capital appreciation of 100% on their initial investment
(often as low as ££;35,000) within just 12 months, simply by taking the advice of our property investment advice.
Developers'; payment terms are designed to provide significant returns for early or off-plan purchase, often meaning
price rises of at least 30% during construction.
Anyone who claims to have an infallible crystal ball regarding investment trends or predictions of economic growth or
decline should be treated with extreme caution. We can't tell you that Spanish property or Spanish rent is guaranteed to
rise 20% in value every year, although there are people out there who will! All we do is give you some sensible pointers
based on our own experience, knowledge and common sense plus or years of experience in the real estate market in Spain.
We all know that stock markets can provide a very rough ride, and in the worst-case you can lose virtually all your money.
Property investment, however, is always a pretty solid bet and not nearly so volatile. While property prices may at times
fall in difficult markets, the long-term trend is always upwards.
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