| |
Property in Spain has proved to be a sound investment over the last decade. Prices have continued to rise steadily and strong capital growth has been achieved. The two main options for property investment in Spain are buy-to-sell and buy-to-let.
BUY TO SELL
A small number of developers will allow investors who have placed a deposit (usually 30-50% of total price) to sell on their option to purchase before completion of the purchase, enabling the investor to maximise profit on a relatively low capital outlay. Pre-selling the property before completion avoids the payment of IVA on new property.
Instead of taking the profits from the capital growth, investors may also choose to complete the purchase and then use the property for letting, achieving an ongoing income from buy-to-let. A good strategy can be to place deposits on several properties, taking the profit from some on a buy-to-sell basis, and putting this profit into the completion of sales on other properties which are retained on a buy to let basis.
BUY TO LET
For buy-to-let investment the location of the property should be chosen very carefully; please speak to the Eden Villas sales team for advice on which are the best places to buy property for investment. The developments featured here could all offer excellent buy-to-let opportunities. Many investors are already enjoying healthy returns on their investment through buy-to-let. This really is a good option if you would like to enjoy your own property in the sun, whilst getting others to pay for it! Spain has an active holiday rental market, offering good investment potential. You can benefit from rental income, hopefully good appreciation in your property's value, as well as the option to use it for personal holidays.
When selecting property for buy-to-let, it is necessary to consider the initial capital outlay is as important as an estimation of how many weeks letting you will be able to achieve. For example, although you may be able to achieve 35 weeks letting in a Marbella penthouse, if you have had to pay high price to purchase the property, then the overall return could be relatively low, compared to a cheaper property in the Costa Tropical that would have a shorter letting season.
|
|