Why invest?
Investors look to property because it has historically proven to be one of the most reliable options for investment and can offer lucrative returns. While other investment options such as shares can provide decent returns, they tend to be more volatile.
Property investing is not as unstable and therefore involve fewer risk implications. With conventional pension funds and savings accounts providing such low rates of return, many clients have turned to property to build up substantial funds on a more consistent basis. No other investment allows such flexibility in terms of staging payments.
- One of the main advantages that property investment has over all other investment vehicles is the ability to gear the investment. Gearing enables an investor to enjoy the benefits of returns based upon the full asset value having invested a much smaller percentage.
A off-plan property costing €300,000 requires only a €90,000 initial investment.
- A property worth just €4,000 just 30 years ago would today be worth around €270,000. However, with the right combination of location, quality, design and amenities, investors have been able to secure far greater returns.
- On average, the value of a property doubles every seven years.
- Equities or stocks are notoriously volatile, as with the dotcom crash. Long-term investment in property however is historically stable.
- 50% of the name individuals on ‘The Times Rich List’ made their money through investing in property.
World-wide, investors are now turning to global property markets as an alternative to traditional investments. Emerging property markets come with higher risks and uncertainty with volumes of end user purchasers (people purchasing a property for own use/rental) still not established.
We believes that to ensure security of funds, investment should be based on a proven marketplace with a stable economic and political climate. This is why we offer property investment opportunities in Spain.
Spain has high levels of legal security surrounding property purchase, within a proven off-plan and rental marketplace, and sustained levels of economic and property growth. While various additional areas are attracting investors, Spain has a continuing and proven track record.
With a combination of low Spanish interest rates, stock market uncertainty, investors continue to turn to property on the Northern Costa Blanca as a safe investment that has given impressive returns.
Why Invest in Spain?
With around 2.8 million legal foreign residents in Spain, not to mention the long established and ever-increasing tourism figures, Spain has become a top destination for foreign property investment.
The Spanish Ministry of Tourism predicts that more than one million foreigners will set up home on the Spanish Costas in the next six years. This figure is expected to treble by 2025.
Natural and Cultural Factors
The dream lifestyle is a new priority for Northern Europeans who have become disillusioned with the cold climate as well as unhealthy, unsafe and hectic lifestyles. Spain, particularly the Costa Blanca, offers a fantastic, warm climate year round. This allows for an abundance of outdoor pursuits, such as over 40 golf courses, untold beaches and the attractive Spanish lifestyle and culture. An excellent infrastructure is already established too, including European standards in medical and social security services.
The Costa Blanca boasts some stunning beaches and breathtaking countryside which cater for all tastes. Rambling, golf, skiing, watersports and beach life are but a few of the ways in which residents and tourists enjoy this stunning area of Spain..
Spain is easily accessible from the UK, with links to countless regional airports. Budget fares are plentful and within two and a half hours you can be landing in sunny Spain.
Economic Factors
More people are becoming financually aware and disillusioned with their poorly performing pension and savings plan, PEPs and stock investments which continue to fall in value daily. This loss of confidence in traditional investment has led to people searching for opportunities that can give a satisfying return on their investment.
Spain still offers value for money and excellent returns. The market remains buoyant and there is little sign of change for the foreseeable future. Despite a slight slowdown, construction continues. Purchased in the right locations, property remains the favourite form of investment.
Property prices in Spain remain a good deal lower than those in England too, allowing people to afford a holiday or second home, or indeed relocate to the country and retire early. Spanish properties are becoming more popular as they provide an excellent investment as well as a holiday home.
Off-plan purchases are a popular investment option for those in the know. You can avoid the full cost of paying for the property by paying in installments and selling the property on for a much higher price prior to project completion. Vast profits continue to be made with shrewd off-plan investment.
Rising prices seem set to continue for the foreseeable future, in both the popular coastal resorts as well as in easily accessible inland regions. Spain has a stable and mature property market, while prices have risen by 48% in the past three years.
Spanish Property Continues To Flourish
According to ‘The Economist’ in October, the second quarter of 2006 saw property prices increase in Spain at an average of 10.8% per annum. Although, this is lower than the 13 or 14% increase last year, this should be compared to smaller gains in the UK at 6.9% per annum. There is still good, solid growth in Spain, some areas increase at higher levels than others do.
It is clear investors are still making solid returns in tourist areas that are easily accessed through cheap flights. The growth of provincial airports supplying flights to new locations is having a direct impact on the property market and creating new mini hotspots for the discerning investor, e.g. direct flights to Alicante from the UK have dramatically driven a new demand for this area. In addition, low cost flight routes have recently been announced to Spain via Ryanair (Liverpool & London Stansted to Alicante) all good news for investors in Spain.
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