Guide to New Build Property Investment in South-Eastern Spain
Hospitable and sunny Spain has long become one of the most popular tourist destinations. Accordingly, real estate in Spain is increasingly attracting the attention of more and more foreign guests. The housing market in large cities is developing steadily. At the same time, rural areas are beginning to enjoy significant demand, for which the issue price is much lower than in resorts. Investments in real estate in Spain have always been, are and will be in trend. What should a novice investor know? Let’s discuss it here.
Direct Property Investments Spain, Moraira: Main Reasons
Before discussing the questions of “where?” and “how?”, let’s consider the main target – “why?”. Why is it worth buying investment property in Spain? There are three main reasons why it is worth investing time and money in the process buying a property in Spain:
- Real estate on the coast in one of the most popular countries among tourists in the world;
- Guaranteed high return on investment, as well as their high liquidity;
- The desire to do business in an economically developed country with high social standards and living standards. The Spanish economy is growing steadily.
Regardless of the purpose of immigration, employment or doing business, an important condition for being in the country is a residence permit in Spain. It can be issued upon the purchase of real estate worth from 500 thousand €. You can consider investing in real estate in Spain with the aim of renting it out.
The average price per square meter of housing in major cities in Spain will cost about 2700 € and higher. For the province, this figure is lower – up to about 1600 €. Thus, you can stick to the following strategy: buy apartments in Spain from 30-35 thousand €. Renting a one-room apartment in tourist centers ranges from 600 €/month while on the outskirts – about 450 €/month.
Thus, rental services in Spain can annually bring its owner from 5400 €. Taking into account the associated costs and taxes, which make up about 24%, the net annual profit is about 4,000 €, which allows you to recapture the purchase price in about 10 years. Given that property prices are steadily increasing, the return on investment will take place earlier. So, it’s an effective way to increase the capital gains.
What Is the Best Option: Things to Consider
Before choosing something, you should familiarize yourself with the entire range of offers. You can distinguish between primary and secondary real estate. In the first case, we are talking about buying a home from the company that builds houses in Spain. The second option includes apartments or houses where people lived. Of course, new real estate with the use of modern construction technologies can save from a number of emergencies that periodically arise during the repair of the old property.
According to the condition the property has, it’s divided into free and socially protected. Free real estate is actively sold by the estate agents and is characterized by speculative prices. Officially protected housing is subsidized by the state and sold at the lowest price. Housing prices in Spain fell a bit. They depend on a number of factors, among which, not only the defects the property may have but also location plays a significant role. If you can’t afford to get property now, you can consider using a mortgage or get a credit from the SAREB company that owns assets for the construction development. Find a professional accountant who will help to choose the best variant.
The Property the Process: It’s Easy with Professionals
Investment in real estate in Spain is characterized by high profitability and liquidity. In addition, an apartment or a house in such a picturesque country allows you to escape from the cycle of everyday life and relax on the seashore of Andalucia at any time. Real estate in Spain, despite periodic ups and downs emerging and influencing the value the property, traditionally remains in trend, satisfying unremitting demand. Are you the one who has always been dreaming about investing in property near the Spanish coast? Juan Sala Contrucciones y Properties is the leading company in the market that can make your dream come true.
Our experts have the largest experience in the building market. We’ve been building here for over 50 years. So, don’t hesitate to choose the property built following the latest trends by our professionals. We guarantee that we’ll help you to find the best sustainable option that corresponds to your wants and needs. Do you have your own project for building property in Eastern Spain? All the families and just couples living here and many travellers have either chosen our repair or building services. Your project is safe in the hands of our specialists. We’ll help to build safe modern buildings. Investment in Spanish property isn’t less profitable than investing in a stock or some financial products from Banco. You can flip the property you’ve bought with ease because everyone wants to live in such a great place as Moraira.