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Buying in Spain as an investment

You might be thinking of buying a property now that you can use as a holiday home for part of the year, and that you may eventually live in permanently one day.

No one can guarantee what the Spanish property market will do over the next twelve months, but there are some bargains to be found and prices appear to be falling.  This means with some strong negotiation you could purchase a property for a reasonable price.

However, if you’re intending to buy a property as an investment don’t expect to make pots of money immediately (or at all!).  You should seriously research the area you intend to buy in and whether there is sufficient demand for rental properties.

Things to consider:
Your property will need a strong marketing plan to ensure it attracts clients.  Ask yourself what you look for when going on holiday or rent a home long-term.  What facilities do you need?

You can either do your marketing yourself by advertising in newspapers (both locally and in your home country), setting up a website, joining an owners website and putting adverts in shop windows.

The other option is to use an agent to find you tenants or holidaymakers, but you will have to pay them a fee.

Location – you may think your mountain retreat is perfect, but it will have less appeal to the majority of people than a coastal location.  You can also charge more near the coast.

The property will need checking when it stands empty.  This will include cleaning, general maintenance and upkeep of the garden and pool.  You might be lucky enough to know someone locally to do this for you, or if not your agent should undertake this.

When will you want to use your property?  If you want to spend holidays in your property you will need to plan carefully as you may find you can only visit in school holidays for example, which is when you could be earning peak rental income.

Insurance.  Your property and its contents will need to be insured and all possible security measures taken.  An empty property is a target for thieves.

Bills and taxes will still need to be paid even when the property is unoccupied.

Don’t assume the value of your property will rise and you’ll make a killing.  Spanish property prices are very buoyant and some properties can take years to sell.





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