How Thousands of people are buying second homes in Spain?
by Andres Miller
Published on this site: August 9th, 2005 - See
more articles from this month
With a major portion of the Iberian Peninsula occupied by
Spain (80%), it is indeed inviting a location for investment
towards an ideal second home. Spain is also sound with reference
to geography, climate and cultural richness. A large coastline
has contributed highly to attract real estate and holiday
planners to this area. A temperate climate makes it the ideal
holiday destination. The culture of Spain is rich and pleasurable
still, ingrained with foot-tapping music and folkdance.
Investments in Spanish property have seen high returns though
these may vary from area to area. For instance, across Spain
as a whole, last year, the value of property increased by
17.5% approximately .In order to discharge doubts about investing
in Spain for a second holiday home, the new legislation that
covers property sales and building standards offers increased
security, which makes it safer than ever before to buy property
in Spain. Add to this an expectancy of growth in the Spanish
property market that is widely predicted to continue. This
is given a further impetus by the Spanish Government's policy
to encourage tourism, international investment and construction
in the Country. Players from the European region have especially
stood to benefit from this move.
The number of foreign investors buying holiday property in
Spain has increased dramatically in the past few years. Pleasant
climatic conditions, great scenery combined with fantastic
culture and cuisine have attracted a wide range of people
wanting to buy a second home in Spain. Low interest rates,
a boom in the Spanish property market and a growing demand
for rental accommodation from the tourist industry indicates
that a current investment would yield impressive returns in
the ensuing years.
The area to buy property is most dependent on individual
tastes and needs. If the priority is to generate income out
of the second home then, it calls for a detailed research
or, engaging a real estate consultant. Then again, there is
a tussle between choosing a seaside home and the quiet rustic
interior regions. The former, which is also profitable, calls
for a heavy investment initially. On the other hand, the countryside
home is economically viable but does not guarantee returns
by renting out the homes to holiday planners. The rural areas
are most suited to an investment that helps to gain more property
at a lesser rate.
Depending upon personal considerations, investments could
be made on new property or, those for resale. The returns
on previously owned property is immediate if adequate research
is done on the existing rentals for the area as the advantage
of buying furnished property can also be cashed upon. This
is in turn, determined by the condition of the house and dues
to be paid, along with how much in demand the property is
valued to be.
From holiday apartments to villas to small-town properties,
each has its own defined set of capital investment in terms
of buying and maintenance. The returns range from personal
luxury of a home away from home, to rentals dependent on proximity,
to tourist locations. So, whether you fall in the investor
category or the relocated bracket, Spain is a preferred choice.
Coastlines have attractive incentives to rent out bought properties;
the retired get more for their money by moving inland; and
those moving to Spain permanently are doing well by looking
at the population-dense areas.
By visiting the preferred location, the investors have also
seen the holiday homes for themselves, understood the potential
for income-generation and avoided pitfalls, if any. Thus,
engaging Spanish lawyers familiar with the Country's regulations
in order to ensure smooth and well-negotiated transactions
has helped the people to make sound homely investments. That
an estimate of all these works up to only 10% of the property-price
is of great interest to the buyer.
The procedure for sale of estate homes in Spain requires
the buyer to be exceedingly fast with investments and decisions,
which allows for quick owning of homes and happy times and
returns thereafter. Following an exchange of deeds, contracts
and payment of fees and dues, a person is the proud owner
of a beautiful holiday home. With sufficient guidance from
the Spanish-speaking lawyer or consultant regarding wealth-tax
and taxable incomes, people have finally woken to the possibility
of the second holiday home in Spain as well as appreciating
Spain as a property investor's paradise.
For more information on properties for sale in Spain, please
visit http://www.villasabroad.co.uk
Andres Miller is a successful Real Estate Broker and
Property Consultant in Spain. He has been contributing to
http://www.villasabroad.co.uk,
a Guide to buying villas and properties in Spain
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