The Big Business Of Property Investment..

Property:Real-Estate

Property investment has become big business in the last few years, and experts expect this to continue for several more years. Growth in property values means people who already own property now have much more equity at their fingertips to use however they choose. More and more they’re choosing to use that equity to fund the purchase of investment property. Spain in particular has experienced explosive growth in the real estate market, driven primarily by Britons and other Europeans seeking investment opportunities.

Poor Performance Of Traditional Investments

Why the increased interest in investment property? One major factor is poor performance of more traditional investment avenues. The stock market has lost some of its appeal in the last few years so fewer investors are channeling their money this direction. The decline in availability of pension funds and extremely low personal savings rates also contribute to increasing interest in investment property.

Aging Population

Another reason for the growth in popularity of investment property is the rapidly approaching retirement “bubble” of baby boomers. It is estimated that between 2005 and 2010 there will be nearly 52 million baby boomers looking for a place to retire. This group of people has shown a strong preference for areas with a relaxed lifestyle, plentiful sunshine, and easy access to water activities, which means Spain is high on their list of possibilities.

Buying Off Plan Property

Investment opportunities abound in Spain, especially in the realm of off plan property. When you buy an off plan property you’re buying into a new development before it is completed. In many cases, you’re buying before construction has even started. Getting in on the ground floor, so to speak, means you benefit from much lower prices, choice locations, and more favorable financing options. Because property values are rising so quickly (25% - 30% per year in some locations), an investment in off plan property can pay off handsomely in the right circumstances.

Investment And Property Advisory Companies

The surge in popularity of property investment overseas means there has been a parallel surge in companies offering guidance to the investor looking for property in Spain. Some are better than others, of course, but in general it’s a good idea to work with a company that has experience with property investment in Spain. They are up to date on Spanish law and can help guide you through the maze of purchasing investment property.

Jamos - www.spaingolfproperty.co.uk