Buying In Spain - Eyes Wide Shut?
Buying Your Spanish Property - On the Coast or Inland
Do you go to the coast along with many others or do you look
further inland for your dream home - what are the benefits to
you for each of these locations.
Rental Income Firstly you should have already decided what you
want from your move and potential purchase. Are you going to be
living here permanently or will you be using it as a holiday
home, do you therefore require a rental income to cover all or
part of the costs? If so then you will need to look more towards
the coastal regions and the tourist areas, although inland is
becoming popular with a different breed of tourist - those
wanting to get away from it all.
There is not such a critical mass of people wanting this kind of
holiday so if you need to rely on an income then you should look
towards the Costa's. You could secure a long term rental for
your inland property to cover you your costs, but you need to be
very careful ensure contracts are well worded. Failure to do so
can be costly.
Capital Gain In recent years prices on the coast have soared.
Recently though, prices are slowing - whereas before 20-50%
rises were common - it is now a more reasonable 7% rise per
annum. In part this is because less people are buying - the UK
has seen a dramatic downturn in the property market, and this
has had a knock on effect on the Spanish Market. Previously
people were selling to move out here. Now they cannot sell their
house in the UK so they have less budget and on the coast their
budgets will get them a 2 bed apartment 500M from the beach.
Move inland and you have a wealth of villas in excellent
condition with pools and for the same sort of price. So people
are more discerning in their choices.
Renovation of property 4 years ago it you could buy a house for
reform that would return much more than the value of the
reforms. For example a house worth