Investment Property Spain

Investment property in Spain has been big business for a few years now and there are still developments springing up on every street corner.

When I drive from my home in Marbella toMalaga Airport the whole area between the Toll road and the sea is awash with cranes.

I know that this view is replicated throughout the Costa Blanca, last year we were in Calpe(very nice beaches) and the availability of property for sale in Calpe is huge. Massive amounts of apartment blocks some 25 storeys high, were going up everywhere.

So, where is the best place to buy investment property in Spain, what are the options for making money and when should you make your Spanish property investment?

The best place to buy..

The best place to buy an investment property in Spain is quite simply where the people are!

If you plan to buy a Finca in the middle of nowhere, with no direct flight from the UK and no facilities is this the best home for your money.

You could argue that buying an apartment on a complex with 250 other apartments may not be such a wise choice of investment property in Spain but I beg to differ, a little anyway.

If you buy an investment property within a complex follow the golden rule...

Location, Location, Location...

As I said in a previous section it is no good relying on people who drive to provide you with an investment income.

By following the golden rule we will then assume that you have purchased within an area which offers great facilities and amenities, beaches, shops, supermarkets, golf courses, parks for the kids, that sort of thing. If you have then bingo, you will have little trouble in convincing someone to go there on holiday.

We will also assume that if you have brought within easy reach of all these facilities that there are a lot of people nearby involved in the tourist industry and nowadays probably property aswell.

At the moment some of the best opportunities seem to be in Costa Calida Property and Costa Almeria Property. Both areas are near expanding airports and both are close to some of the best beaches in Spain.

This gives you another option for generating income from your investment property in Spain...

Long Term Renting.

The laws and details of long term renting are a little complex and we cover them in another section but it is an area with high demand and little supply.

Whilst the returns can sound low at first, at least you get constant income.

Capital Appreciation

A lot of people have been making serious capital appreciation from purchasing property off plan and again we cover that in another section. I am not sure that I can give a convincing argument for the Apartment within the complex going up in value more than a remote Finca but If go back to the laws of supply and demand then surely the busier locations with better amenities will create more demand.

When to buy your investment property in Spain.

There is never a perfect moment to buy property in any area of the world let alone Spain. The property markets are either going up, bad time to buy. Or the markets are going down, bad time to buy.

The consideration for choosing the best time to buy an investment property in Spain is based more on your own financial position and whether that position is likely to change in the next few months or years.

Nobody wants to buy at the peak of the market that's for sure but if your Spanish investment property is a long term project, which it should be, all things are relevant.

An example..

A flat that I sold in Linden Gardens, W2 in 1990, the top of the London property market, cost £120,000. The value of the property moved down to around £105,00 over the following couple of years but from about 1994 the value started to climb. The value of the flat today, 2004 is around £350,000.

If you look at this example without the benefit of hindsight you would be saying, he should have brought the property 18 months later, but would they have brought! would nt they be worried that the market was going down,.

What would have happened if they had kept their hands in their pockets...

In 1994 they would be too scared to buy because the prices were going up!!

They would have ended up buying in 1996 for £185,000!

Yes, the market in Spain at the moment looks a little overheated, yes the prices are high, but follow the golden rules, have enough money put buy to cover the difficult patches and treat your investment property in Spain as a long term project and your investment should be safe.

Within this guide we also have advice and information on Buying property In Spain, Finding Property in Spain, Estate Agents in Spain, The Costs of Buying Property in Spain, Buying an Apartment in Spain, Buy to Let in Spain, New Developments In Spain, Off Plan Property Spain Property in Spain, Resale Property in Spain, Investment Property in Spain, Rental property In Spain, and Property Management in Spain