Spanish Investment property
investment property

Spanish Investment Property

Spanish investment property is extremely rewarding for both our experienced property investors and also clients commencing the purchase of their first acquisition on the way to creating their own Spanish investment property portfolio. Spanish investment property comprises of different categories, purposes and strategies all of which are highly contingent on each purchaser's individual requirements and financial structure. Within the Spanish investment property market there are several strategies for consideration prior to collating your portfolio. It is very important that you consider all options and our team of experienced professionals will discuss and assist with the correct structure of property investments for your needs, requirements and objectives. Below we introduce you to an outline of Spanish investment property strategies which one sounds like you?.

Option 1.

Spanish Investment Property - Speculative Investment.

Speculating on Spanish investment property has and continues to be very financially rewarding for our clients. We continually appraise and list the best pre-constructed developments with full building licenses in place and increasingly competitive payment terms. When we advise our speculative investment clients of recommended developments we have carried out all research on their behalf such as assessing price per square metre, build quality specification, orientation, nearby amenties, the number of units to be built, potential capital growth and re-sale potential. As well as the chosen development, we assist clients in selecting the prime units.

Option 2.

Spanish Investment Property - Long Term Rental Investment

Buying Spanish investment property for long term rental puposes is a sound strategy, whether this be resale property or pre-constructed property. With our market knowledge we will advise you on the right properties for this type of investment. Your purchase will be structured as such that this will be self funding investment covering your ongoing overheads and your Spanish mortgage if required. Long-term rental agreements in Spain are typically on either a renewable 6 month or 11 month term. In addition to the monthly rental revenue, your investment will achieve a capital growth increase of an average of 8 to 11% per annum. We advise choosing this type of Spanish investment property if you are looking to sell the property after 3 years to allow you capital growth benefits and an established rental history which will provide a quick re-sale strategy. Alternatively, you may wish to retain the property and utilise the equity to expand your portfolio of Spanish investment property further.

Option 3.

Spanish Investment Property - Short Term Rental Investment

Short term rental of your Spanish investment property is ideal for investors if you want to benefit from personal use i.e. for weekend breaks or a family holiday and also from renting the property out during peak season. If you like the idea of using your property in the winter months to escape the cold at home and want to generate extra income in the hotter summer months (June - September), you are a short term rental investor. These peak months command the highest rental revenue, enabling you to cover your annual overheads of the property. We carefully select the best mature and new developments ideal for this type of strategy. This type of Spanish investment property gives you the best of both worlds - rental income, a holiday base and of course annual capital growth.

Now with the new legislation implemented by the Spanish government to reduce the amount of licences being issued for property development has given investors looking to purchase Spanish investment property extra assurance that demand for Spanish property will not outweigh supply as we have seen in other property investment markets.

Listed below are just some of the key benefits of Spanish investment property

  • Only 30% of the purchase price plus costs are required per property.
  • Capital growth of between 15% to 25% by completion of construction.
  • Full bank guarantee on all funds invested whilst under construction.
  • 10 year builders guarantee.
  • One of the lowest rates of capital gains tax in Europe - 18%.
  • High quality build specification.

    This is just a small introduction of the benefits of Spanish investment property. Contact us to speak with one of our property investment specialists who will assist you in structuring your portfolio of Spanish investment property.

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