Why invest in Spain?

The answer is simple. Southern Spain has arguably the best all year round climate in Europe with long hot summers and mild winters. Couple this with the low cost of living and the ever increasing number of low-cost flight services from the UK , still makes Spain the No 1 place where the British want to come.

Property values in southern Spain have increased steadily in recent years, an average of 20-25% being reported. We all know that there are no guarantees when it comes to investing in property but there is nothing to suggest that the trend is going to change. Indeed, even at a slightly lower rate of increase, this would still be substantially higher than the Uk ’s Building Society base rate.


There are usually two ways to make an investment in the Spanish property market.

  • Buying Off-Plan… Buying off plan means that you choose a property at the stage prior to building work commencing, placing your deposit to secure your plot and staged payments are made until completion date usually 2-3 years. Mortgages are often guaranteed with the purchase. Sometime before completion is due you sell your investment at the increased value. No capital gains tax is due as the owners name does not appear on the Escritura until final payment is made and keys are handed over.
  • Buy To Let… Buying to let is similar to that in the Uk, in so much as that you buy a property and rent it out to tenants, however in this case it’s usually to holiday makers and the returns can be more substantial. It also allows you to take holidays yourself with of course just your flights to pay for. You will find that there are plenty of rental management companies who will assist you in letting out your investment if you did not want to do it yourself. They usually charge 8-10% of the letting fee. Some banks are now offering buy-to-rent mortgages.

 

Which ever way you decide to invest, Coastline Properties will guide you through the process and give advise as to which type of investment suits your needs and your budget.