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Buying Guide:
Property Investment in Spain
At Dream Living we keep a close check on Spanish property prices
on the Costa's. Over the past few years we are delighted to report
that Spanish property investments have provided excellent
returns for serious investors and great increases in the value of
their property, even if purchased purely for pleasure or retirement.
The beauty, climate, lifestyle and ever improving infrastructure of
the coast has created an unprecedented demand for Spanish homes;
not only from residents of Northern Europe, but from all over
the world.
Your Home as an Investment:
Many past clients have financed their purchase from rental income. Well
managed properties should show a healthy annual profit after paying all
running costs and mortgage payments. In addition, you can look forward
to substantial capital appreciation on your purchase. Property prices
have doubled over the last 3 years in Spain and the demand for quality
properties continues to outstrip supply. In the example below we give
an estimate of potential annual gross income and anticipated expenditure.
Obviously on a more expensive property anticipated rental income would
be higher. The following is an estimate of potential gross rental income
and anticipated expenditure for a new 2 bed property, assuming that the
owner has private use for himself, his family and friends for 3 months
of the year.
Gross potential income:
For a new 2 bed apartment, close to golf, sea and ammenities.
High Season (say 2 months) @ £325 per week £2,600 Low Season
(say 7 months) @ £150 per week £4,200
3 months for personal use @ £000 £6,800 per annum
Anticipated annual expenditure:
Community Charges £300 (approx)
Local taxes £250 (approx)
Electricity £500 (approx)
Town Hall Rates £250 (approx)
Water/rubbish collection £250 (approx)
Miscellaneous £250 (approx)
Mortgage Repayments (if applicable) £3,000 (approx)
Total: £4,800 per annum
Potential gross annual income: £6,800
Minus anticipated annual expenditure: £4,800
Potential gross anual profit: £2,000
(After all expenses incl. mortgage repayments)
PLUS, OF COURSE, SUBSTANTIAL APPRECIATION IN THE VALUE OF THE PROPERTY
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Property Exhibitions