Here’s to Investing in Bargain Properties in Spain
If you have been thinking about buying an apartment in the sun along the Mallorca coast, perhaps it’s about time. Most people have been engrossed in the General Election, the housing crash in Spain that has been running for a long time has either been forgotten or unknown. However, the consecutive declines have started showing improvement in a number of sectors after seven years. In March 2015, the homes along the Mediterranean started showing a rise in price by 0.2%, a significant increase and the only one in seven years. Since the beginning of 2008, the cost of homes has refused to go up but went on a downward spiral, having fallen by a whooping 48% until now.
Also, house building in Spain seems to have been tamed as planning applications for new properties are clearly picking up. Banks in Spain had once repossessed millions of homes but that number has gone down to about 120,000, meaning buyers are flooding back into Spain for that dream sunny home.
More bargains than ever before
Holiday makers love Spain due to the magnetic sun that has always drawn people from Europe to its shores. In fact, it’s a dream for most retirees and adventurous couples to own a villa by the shores of the Mediterranean where they can return to England with a perfectly done tan. Bargains for apartments are also going up across Alicante, Almeria, Costa Blanca, Costa del Sol and across Malaga. Daily flights from the UK right to the Spanish city of Malaga are now very common and increasing, mostly by British buyers.
It’s possible to buy a high-end new flat below £120,000 per flat with four-bedroom houses around Almeria accessible for about £192,000 only. In Alicante, an apartment with two bedrooms that comes with a communal pool at the rooftop goes for around £25,000 only.
For those who’d like to invest in apartments and flats in established developments and resorts just £40,000 is enough. High-end buyers looking at Barcelona and Valencia among other cities or Menorca and Mallorca, which are always favourites, can find the property they want without a problem.
Experts are looking at the current upturn as something that will not loose steam any time soon. This has even made buyers invest in serious restorations in their properties and not get-rich quick refurbishments experienced before.
Prime areas in Spain are already seeing a lot of older homes being purchased, which have been bought with renovation and refurbishment in mind. However, for those thinking about buying a finca, flat or villa via loans, they need to know the mortgage system in Spain is more severe than that of the United Kingdom, especially borrowers who are self-employed.
One of the options is extending the mortgage on your property in the UK and using the funds to purchase a dream flat in Spain. Also, investing in Spain at this time is awesome but don’t forget there are legal and tax issues to be taken care of.
Use experienced lawyers only and avoid signing any document put before you, particularly in a language you cannot read, talk or comprehend.