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Spanish Property.

Spanish Property

Lifestyle, Return - Low
Buying property in Spain – Predominantly lifestyle properties selected to meet your specific requirements.

For those who are looking to purchase a Spanish property as a holiday home at this current low point in the market, we offer a service where we can help narrow down your requirements and advise on the practicality of your goal.

When looking to buy a lifestyle property, the first and foremost reason to purchase real estate is through the love of visiting the area. Whether this is due to the climate, culture or even the pursuit of alfresco dining, the old saying still holds true: location location location!

Spain, and the Balearic islands, have long been the number one destination for British holiday makers looking to escape the UK. It was no surprise then that this led to an influx of British migrants looking to build a new life over the continent or seeking to purchase a holiday home in order to put their stamp on the tropical region.

It is no secret what has happened to the spanish property market in recent years. With an estimated 2.3 million homes started but never purchased or completed, some people are put off. But with every cloud comes a silver lining. Due to the over supply of houses in Spain, the price of the lots have slashed to an unprecedented level with even the most prestigious land owners having to cut their losses and accept a market average price. The Spanish president accepted a 38% below purchase price offer on his property in Almeria.

Spain is a buyers market. Banks are offering extremely generous financing for Spanish property in order to reduce the amount of repossessed property on their books. And while the property prices may have halved, the attraction of cheap flights is making it even easier to access the areas which still provide levels of sunshine which UK residents can only dream of.

Recent figures show that the Spanish property market has recovered, and in many areas is doing better than it ever has done before! Take Mallorca for example. The average price of a one bedroom apartment is around €150,000, thus ranking it amongst the world’s top 50 most expensive residential areas.

With a readily supply of resale property on the market, purchasing your dream lifestyle home does not have to involve the purchase repossessed real estate. Whereas a few years ago a deposit of €80,000 may have been required, in the current market this may be sufficient to outright purchase a 3 bedroom villa in Spain.

Income

A properly selected Spanish property could well provide a rental income if the location is desirable enough and rental plans can be explored.

Renting properties out in Spain however is quite seasonal and income should be seen as a bonus and never relied upon.

There are, of course, a wide range of different areas in Spain and each region will have it’s own unique differences which will affect the potential income.

Capital Growth

Any capital growth in Spanish property prices is highly speculative and certainly not to be relied upon in the short to medium term.

Those who are looking at buying property in Spain must be comfortable in the knowledge that the value of the property could fall as easily as it could rise in the current climate.

Exit

The only viable exit plan is on sale of property, and would therefore depend on the appetite of the market and consequently number of people buying property in Spain.

Making a purchase of this magnitude is expensive with many ancillary costs attached to it. Reselling would require marketing costs as well as more legal fees.

It is for this reason that we would not recommend anyone other than long term investors buying property in Spain.

Security

As the owner of the title deed, security is in outright ownership.

 

You will find that Spain once again can offer value for money. You still need to be very careful to carry out full due diligence, especially regarding, land ownership and purchase contracts. Our experienced independent lawyers can assist you with all these matters.

Available properties are constantly changing, to receive a few selected properties that will fit both your price range and preferred location, please either call or use the form below to enquire further,

We will then match your personal requirements with your ideal property. Trips can be arranged for those wishing to visit the area to view properties.

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