Property Investment in Spain..

Property:Real-Estate

With low interest rates and lower stock market returns, more and more people are adding investment property to their portfolios. But property investment can be daunting, and there are very few places you can go to get a thorough grounding in how to build and manage a property portfolio. Here are some hints that can help you take the right decision regarding property investment in Spain.

An ’off plan’ contract is more common, and is typical to villa or apartment complexes, whereby you agree to buy a property once it has been built, and you make payments as the building goes up. An off plan Spanish property is an excellent investment delivering high capital growth, which at present is around 22.5% on properties with a build time of eighteen to twenty months. It can also provide a lucrative source of income through rental opportunities.

When you buy in a villa or apartment complex, you will be buying into a ’community of owners’, a legal entity that deals with shared facilities like communal swimming pools, lifts, parking areas, external lighting, shared gardens, etc. The preferable one is to buy the land outright, along with whatever the seller has built on it already; and to separately enter into a contract for building the rest of the property, under which you pay by installments according to the progress of the construction. This approach gives you the security of owning the land from the start, and works best where you are buying a property on its own plot of land, rather than as part of an existing development.

There is a wide range of Spanish properties to suit each individual needs by size, location and budget. However, the most popular Spanish property markets, Costa del Sol and Costa Blanca in particular, have been saturated. With growing demand for properties in the above areas, lack of planning permission regulations, some parts of these beautiful costas have been overbuilt.

By trial and error the property markets in up and coming areas of Spain are offering much more - good value for money, facilities, infrastructure that was frequently overlooked at the infant stages of the Spanish property market development. Costa Calida and Costa de la Luz are the future of Spanish property market. This trend will continue despite the doom and gloom of some pessimists as the competitive Spanish mortgages open up the market to more people and therefore the demand will not reduce.

Property prices in Spain are going through the roof because the Spanish have seen the influx of money and have raised prices. The prospect of 330 days a year of sun, a milder climate for arthritic bones, a golf course for every day of the week, international quality schooling and a magnificently diversity of influences are dangled carrot-like beneath our noses is irresistible.

There are great Spanish Property investment opportunities and for investors this means a constant stream of rental clients. 2005 is looking like being a very busy year for the properties market in Spain.

Gazelle - www.spaingolfproperty.co.uk