As the Spanish economy strengthens the demand for property continues to grow and the number of house sales also continue to rise. Spain has seen one of the strongest recoveries when compared to many of the other countries in the EU and this is one of the main reasons why buyers are once again turning their attention to this popular destination.
We’ve already seen an increase in mortgage approvals and the number of property sales has risen to near record levels. This, along with a significant growth in rental demand, is starting to push prices upwards. Whilst prices are gradually rising they are still around 50% lower than their 2008 peak, resulting in buyers being able to purchase their home in Spain at a fraction of the price. Many of these buyers are international with a huge 20% of all foreign sales being attributed to British residents. Spain is without a doubt the number one country that UK residents choose for their overseas home.
Spain's fantastic climate, relaxed lifestyle and proximity to the UK add to its constant appeal. As more people consider purchasing a home in Spain, we looked at how to secure the best deal for a potential second home and a well-rounded investment.
Our Five Steps for a well rounded investment are;
1) Choose your location
When looking for a new home abroad many buyers search in well-known locations close to airports and local amenities. This not only allows you to enjoy a holiday home with everything on the doorstep, it also enables you to generate additional income by renting your home out when not in use.
The vast majority of buyers will head for the coast when starting their property search in areas such as the Costa del Sol and the Costa Blanca. Locations like this are much sought after due to having easy access to hospitals, doctors, supermarkets, bars, restaurants and miles of blue flag beaches. This demand has also allowed these areas to recover much faster than other areas of Spain. However, everyone will have different requirements, for example those who want a quieter holiday retreat might look a little inland where you still have the benefits of coastline amenities close by but the tranquillity of a slightly more rural and traditional setting. Carry out as much research as possible on which specific areas might suit your individual needs and wants.
2) Book a viewing trip
Taking the time to fly out to Spain and view properties will give you more of an insight into the area which you are looking to buy. It can make a huge difference looking through the eyes of a buyer as opposed to a holiday maker and could potentially have an impact on your overall decision.
Agents such as Sequre, can offer subsidised rates on viewing trips which often work out cheaper than if you were to book yourself. These typically include a 4 day, 3 night stay in the area which you are looking to purchase, and include appointments to view several different properties that match your specification and budget. Return flights, airport transfers and a 4-star hotel are included in the trip at the discounted price and we believe viewing several properties at once will be more cost-effective in the long run.
3) Find the right property
Spain has seen a phenomenal recovery over the past few years. While the country may have experienced some negative press in the past, levels of construction are increasing and the number of new builds has really begun to attract a new audience to the area.
Spain has traditionally been renowned for its old, Mediterranean style buildings but developers have now turned their attention to more modern and contemporary homes, built specifically for a hot climate and perfect for a holiday home, or even an investment property.
Narrow down your search and be realistic as to what specific features you would like from your new home. Here are a few questions you might want to consider when you start your search:
- How many bedrooms will your property require?
- Are you looking for a villa or an apartment?
- Would you prefer a private pool or access to a communal pool?
- What proximity does it need to be to the nearest beach/town/supermarket?
4) Familiarise yourself with legalities
Purchasing a property in a foreign country will differ from purchasing property in the UK, and laws will differ for international buyers. There are tax implications to take into account and other fees and documentation you will need to get in order. Along with this there are also new laws in place to protect foreign buyers that are worth knowing about. After many British purchasers suffered badly during the economic crisis the Spanish government has begun making amends by addressing the issue and changing the law accordingly.
While it may initially seem like a lot of information to take in, it is worth researching everything in advance. The team at Sequre can help you with this. Additionally, if you choose to visit Spain on a Sequre one-to-one viewing trip, you can expect to meet mortgage brokers (if applicable), English speaking Spanish lawyers, furniture suppliers and many more useful contacts that will help provide you with all the information you need to help you make an informed decision on buying property in Spain.
5) Get the best deal on your new home
For anyone looking to buy in Spain, the timing has never been better. The strong pound against the euro has continued throughout most of this year allowing buyers to get much more for their money due to the fantastic exchange rate. Additionally, house prices remain low which is resulting in buyers purchasing their homes at a fraction of the cost. It’s worth noting that prices are now starting to pick up so if you’re considering buying a property in Spain now is the time to do it.
How can we help?
By using an agent to help with your purchase you will have one point of contact to assist you throughout the entire process. By finding your new overseas home through Sequre you’ll be able to benefit from our genuine property discounts in areas including the Costa del Sol, Costa Blanca, Costa Calida and Orihuela Costa. From your initial enquiry right up to completion of contracts Sequre can help and advise you on your Spanish property journey. To find out more, call our team on 0800 011 2639.