Spanische Immobilien an der Costa Blanca, Mar Menor und Costa Calida.

Investing in South East Spain

For sensible investors with a solid long term strategy Spain is still No. 1.

If you are looking for an investment with very low capital investment and the promise of doubling your money every year for the next 5 years then you had better look at the other less mature (emerging) markets.

We find that the majority of people choose Spain because they love what Spain offers. Of course there is the climate, the slower family friendly oriented lifestyle and (even though most don't want to admit it) the security of a large expat community.

Spain is close to the UK and Ireland.
Spain can be reached in approx 2 hours by cheap flight from UK or Ireland.
Spain has modern infrastructure.
Spain is still the No1 destination for UK and Irish holiday makers and those seeking a sun and fun packed short break.
Spain is still No.1 for UK and Irish families moving abroad.
Spain is still No.1 for Retiring Northern Europeans.

The long term future of the Spanish Property Market looks healthy. (Just like the people who have already settled here from the North of Europe.)

The Spanish property market is stable

The Spanish economy relies heavily on tourism and construction. In recent years construction has been the engine of growth for Spain's economy. The Spanish economy is part of the greater Euro economy which on the whole is doing rather well. It would not be in the interests of the Eurozone to allow one of its strongest economies to damage the others. The Spanish government has taken measures and will continue to do so to avoid distress in the Spanish housing market.

Prices have stabalised

Prices have corrected throughout 2007 and in some cases are now lower than they were at the same time last year.

The rate at which prices are increasing has reached realistic sustainable levels.

The Spanish market is definitely a buyers market. Just like in the UK vendors in Spain are open to offers.

We are now seeing the strongest buyer market for 10 years

Just like in the UK the property market in Spain has cooled down. Prices have stopped rising so steeply, vendors (including developers) are facing reality and accepting less than a year ago.

Before Xmas is usually a very slow time in any property market with increasing interest from buyers coming in the spring.

This year the market is at its lowest ebb for a decade. Waiting until after Xmas could well mean missing an opportunity to buy whilst prices are low and buyers keen to sell are not getting offers. It may be more than the weather that warms up with the arrival of spring.

Borrowing rates in spain are cheaper than those in the UK

With most mortgages offering 5-6 per cent you need to shop around.

The eurozone base rate is lower than that of the bank of England.

A mortgage with first year payments at 3-4% is available.

Most Northern Europeans are doing very well in Spain

People coming out to Spain to live permanently are more likely to find work within their expatriate community rather than with a Spanish employer. And those starting a busines here find their customers either back home, among holiday makers from back home or from their own expatriate community here in Spain.

Increasingly there is a trend for people with successful businesses or careers in their home country moving out to Spain. Modern communications allow you to keep on top of things and regular cheap flights allow for a commute back to the home country when required. Living and working in one of the emerging markets with less developed infrastructure might not be so easy or convenient.

Additional costs - Do not pay more than is necessary

The additional costs of buying a property in Spain are roughly 10% of the buying price. Make sure that this is really the case as sometimes the costs are publicised as being around 10% but then at the time of signing have crept up by 1 or 2 percent.

Warning: Don't be tempted to pay part of the price of your property as an illegal 'under the table' payment to reduce your tax bill. You risk a hefty fine if you are caught and also when it comes to sell your property you will pay more capita gains tax because it will appear you have made a bigger profit.

Standards are high

In recent years the finish quality of new Spanish properties is as good as anywhere in Europe. This has not always been the case with many properties being built for Spaniards wanting a cheap second home to use for a month or so each year. These are the types of properties that are failing to achieve a good price when it comes to re selling. You may well be toying with the idea of buying a cheap place to do up. Make sure you do your research.

To avoid problems down the road we advise buying the highest quality property you can afford. Many people come out to Spain with the idea of buying a home with an extra bedroom for guests. This guest room often gets little used and turns out to be an expensive cupboard. You don't normally make decisions like this when buying a property in your home country. Use the money to buy a better quality property with less rooms or a cheaper property. Family and real friends won't mind sleeping on a sofa bed. And if they do then they can always stay in a hotel. Make all your property purchasing decisions for you and your personal needs.

Location, Location, Location

Spanish Coastal Property
Spain's coastline was determined millions of years ago and is not likely to get any longer. Always popular and with restrictions on further building on the coast buying here is a good investment. As always try to get the best quality for your budget.

Spanish Golf Property
Not just popular with golfers but also with people who want a property with nice vistas of rolling green parkland and the security that their will not be any new development springing up to spoil them. With pressures from Ecological groups and others it is unlikely that new building permits will be given for golf courses. So based on the laws of supply and demand buying a beach or golf property in Spain will be a good investment in the long term.

Inland Spain
As prices on the coast rose, attention moved inland. TV programmes were quick to highlight the bargains on offer. But bargains often have a downside. I remember one such programme that focused on Teruel. Teruel is visually stunning with many beautiful unspoilt towns and villages. The lifestyle on offer is without doubt a real Spanish lifestyle. Property prices are cheap. Filmed against beautiful blue cloudless skies and vistas to die for the program seemed to have found the ideal place for people who want the Real Spain on a budget. Living in the Real Spain can be really great if you are prepared for it. This usually means being fluent in Spanish and often a regional dialect.

Away from the coastal strip Spain is a very high country, second in Europe only to parts of Switzerland. Madrid is Europe's highest capital city. High altitude means more extreme temperatures. Inland Spain has cold winters and baking hot summers with no cool sea breeze. Teruel suffers from bitterly cold winters. This could be one reason the Spanish aren not falling over each other to buy retirement homes there.

Fortunately the coastal strip has an inland part which shares the same climate. You can buy a little way inland without sacrificing good all year round weather, enjoy a relaxed Spanish way of life with the coast a short drive away and an expatriate community on hand if you need it.