December 19, 2016 3 Comments

Is 2017 The Perfect Time To Buy Property In Spain?

Has the Spanish property market ever been so perfect for foreign investors? We take a look at some of the reason why and how you should seriously considering investing in Spanish property in 2017.

Sunrise on the Costa de Sol (Photo Credit Barbara Walsh, Flickr)

Spain has long been the preferred destination for Brits looking to get on the property ladder abroad. Whether it’s a holiday home to rent out as an investment or a retirement relocation, there are some 306,000 UK-born people with residency in Spain. Spain’s warm and sunny climate, relaxed atmosphere and abundance of culture makes it an idea place to escape the stressful grey skies of Britain. The vast majority of those choose the sun kissed shores of Spain to invest their life savings into property. Added to the news that in April 2016 the government levied a higher stamp duty rate on UK citizens purchasing a second home, more and more of us are looking elsewhere to invest our money.

Why is 2017 a good time to buy a property in Spain?

According to OECD data, Britain’s property is some 7% overvalued, this is largely down to a housing shortage across the country. In Spain however, property is massively undervalued by 26% with the opposite scenario – too many houses, not enough residents who can pay for them.

The collapse of Spanish economy led to many major property developments becoming bank owned. Now as 2017 approaches, Spanish banks have been keen to try get rid of these properties to make up for their own shortcomings. The Telegraph reported in March 2015 that some banks we’re even offering zero-deposit mortgages and giving cashback of up to 13% of the property’s value in order to try entice buyers.

Spanish property prices have fallen a huge 30% since 2008 and still remain low. However, 2017 may be the right time to buy as leading Spanish bank BBVA recently forecasted a property market recovery in 2017 with prices rising by 3.5%.

How will Brexit affect buying a property in Spain?

Undoubtedly the first affect Brexit has had is the impact on the pound after the June referendum result. However, many finance experts anticipate that it should recover once negotiations have been resolved and uncertainty has been cleared up.

Pensions and living conditions are unlikely to be affected too much by Brexit and with Spain facing a housing surplus, they are expected to continue to welcome British holidaymakers and investors alike. By in large, most experts don’t see there being too much change at all.

The rights of property ownership will be unchanged, as will be purchase tax, stamp duty and VAT.  On the ground, during one’s lifetime, there will be almost no noticeable difference.” – SolicitorsInSpain.com

Where should I look to buy?

Spain has many areas to offer that are completely different from each another, whether it’s mountainous views, rural country life or sandy shores. There are however some obvious locations where you can get good bang for your buck and still have all the infrastructure, transport links and attractions of a holiday resort.

Alicante

According to The Telegraph, the average price of a property in Alicante is just £119,050 making it an incredibly reasonable investment. Yes, nearly half the market here is made up of international visitors and investors, but as a popular holiday resort it has restaurants, shops, an airport and makes a good option for holiday rental.

Alicante street (Photo credit, Les Haines, Flickr)

Balearic Islands

Ever popular with the rest of Europe, the Balearics offer stunning landscape and towns that provide all the amenities needed for international visitors but also the rural hamlets of true Spanish life. According to Kyero, unemployment is amongst the lowest in Spain and living conditions on the islands are generally excellent.

Murcia

Murcia has quickly attracted the eye of a number of property investors in recent years with its scenic coastal towns, marinas and culture being a welcome alternative from the oversaturated shores of the Costa del Sol. With properties as a low as £30,000 on the market, it makes for a very enticing option for any investor looking for a home abroad.

Murcia (Photo credit puesyomismo, Flickr)

Almeria

With an average property price of £80,000, Almeria offers great value for money. With daily temperatures hitting 30ºC in the summer, Almeria is one of the only cities in Europe to have never dipped below 0ºC since records began. Almeria is very easy to get to with flights into the local airport from London, Manchester, Leeds, Newcastle, Glasgow and Bristol. It also boasts incredible beaches that tend to be quieter than the Costa del Sol, as well as beautiful Moorish towns like Mojacar that come to life in the evenings with markets, restaurants and music.

Almeria (Photo credit David Estrada, Flickr)

How can I make the most from a Spanish property?

The difference in 2017 for prospective property owners is that it’s never been easier to rent out property abroad. The rise of online holiday home rental portals like AirBnB or HomeAway mean cheaper advertising fees and access to much larger audience of holiday makers. Property owners aren’t having to rely on exclusive deals tied to expensive private holiday rental companies anymore.

What laws and regulations do I need to be aware off?

Spain have no restrictions on Brits buying property in Spain – whether residential or commercial.  There are a few things you need to be aware of however:

  • Under Spanish law, debt and mortgages are tied to a property, so when sold, you could become liable for any unpaid debts such as unpaid property tax
  • There is no requirement for a notary for the transaction of a property but it is highly recommended
  • You cannot purchase the property without a special identification number (Numero de Identificación de Extranjero) which you need to obtain from the Police station
  • When buying a property be aware that the seller is responsible for any issues or problems with the property that might be hidden (or even they are unaware of)
  • Buyers must ensure that they register the property at the local registry office

Please see the government’s official advice for buying property in Spain for further information on legal requirements.

All in all, 2017 looks a very strong time to purchase a property in Spain. Spain remains a popular holiday destination so investors are always likely to make earnings on renting properties. However, prices are rising in Spain so you may need to be quick to bag a bargain in many of the country’s upcoming locations.

Summary
Is 2017 The Perfect Time To Buy Property In Spain?
Article Name
Is 2017 The Perfect Time To Buy Property In Spain?
Description
We take a look at some of the reason why and how you should seriously considering investing in Spanish property in 2017.
Author
Publisher Name
Lets Buy In Spain
Publisher Logo

Comments (3)

  • Kevin Mills

    Excellent article, thanks

    January 6, 2017 at 11:04 am

    Reply

  • Dan Thomas

    I’ve been thinking of buying an apartment on the Costa Blanca for several years. I think now is the best time to buy whilst prices are this low.

    January 6, 2017 at 11:22 am

    Reply

    • Pete M.

      Couldn’t agree more Dan, Brexit created a bit of a worry but I think more people will be buying in Spain this year than ever before

      January 6, 2017 at 11:29 am

      Reply

Leave a Reply

Your email address will not be published. Required fields are marked *

Click to view available HTML tags and attributes
<a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>

Solve : *
20 − 16 =


Download Your FREE Buying In Spain Guide

Let’s Go Golfing in Costa Calida, Murcia

Lo Romero golf course in Murcia is punctuated by sultry lagoons and sweeping greens. Just as skiers…

READ MORE

Have We Found The Cheapest Villa In Javea?

Due to the idyllic micro climate, perfect location for accessibility to and from the UK, plus of course…

READ MORE

© Copyright 2017 Lets Buy In Spain. All Rights Reserved.