10 Tips When Investing in Spanish Real Estate

One way to earn money is to invest in Spanish real estate. The value of real estate in Spain is expected to appreciate, especially if the property is located in high-traffic and developed areas. Tourist spots and holiday destinations are some examples. In a few years' time, the money you invest in Spanish real estate may even be doubled if you play your cards right.

Instead of keeping your money in a bank, it is better to invest it with high likelihood of future returns. Investing doesn't only help your personal finances. It also stimulates the economy and helps relieve the recession.

Here are 10 tips that will help you earn more when you invest in real estate in Spain:


If you see high-quality real estate on sale in the Spanish real estate market, don't let it pass. Don't keep on waiting for a better opportunity. Make decisions quickly but with foresight and research.
According to educated speculations, expect property prices for Spanish real estate to go up again in 2011 and at most in 2020. Now is a good time to decide to buy.
You should consider buying unfinished properties. The price is not as high as finished projects and you can complete it according to your specifications, if you have something better in mind.
Invest in golf property. Top real estate buyers are always looking for this type of property, which means that you will not find it difficult to sell again with interest.
Other fast-selling investments are Spanish villas near tourist destinations and yacht harbours.
It's better to buy second-hand property in an expensive but quality resort than to buy a newly built one in a cheap neighbourhood. You might need to shell out extra cash for repairs and new fixtures for a second-hand property, but you know that the price will not depreciate due to its good location.
Buy only properties that have good views and relaxing surroundings. Future buyers will be more encouraged to buy it, compared with property located in a shady neighbourhood.
Don't buy immediately just because the price is low and you think that it will rise in the future. Evaluate your options first and consult with the experts. The price is not the only determinant in making a good investment.
Never buy property if it's within 500 yards of the seashore because in some places there is a limit set by law. Also, house or land too near the beach may be washed away by the waves during high tide or a storm.
If you're buying a small property such as a villa or an apartment, it isoften better to pay in cash. In this case, taking out a loan, however small, is not justified because of the high interest you will need to pay later on.

Guy Marrison runs Marrison Properties, a Marbella based Property Company specialising in Real Estate in Marbella.

Visit the Marrison Properties web site for more information about the Marbella Property Market


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Segmentation in the Spanish Property Market

Reports on the death of the Spanish property market are premature. The market is starting to recover slowly after two years of falling prices and the patent lack of lending from the banks. As the banks are now loosening up their lending for anyone with some money to put aside as deposit especially on their own repossessed stock they are wanting to finance 100% where possible to get the liability off the books.

The recovery is not everywhere though and not all types of property are recovering and I certainly do not expect to see price rises any time soon. With that in mind, I will give you some examples where I do not see falls abating currently and then tell you what a prime property consists of. This segmentation of the market is a very important concept to understand because without it you treat all properties in the same way and that is not how to look at the Spanish Property market, it is not a monolithic whole.

For a property to be considered "prime" it must have an intrinsic value which is easily measured. "Sub-prime" property does not have this same intrinsic value. Sub-prime is a lot more prone to sentiment and demand within the market. There is little or no demand for "sub-prime" property outside the big cities and their periphery. A good example would be a series of properties built on an estate where everything is similar inland and away from the beach with few facilities around and where everyone must use the car for all journeys. (It is impossible to segment the properties on this estate, they all fall into the same category of sub-prime). It is likely that transport costs will rise bit by bit over the next few decades and these properties will become less and less desirable as a result. The opposite is also true of course meaning that prime properties with little distance to travel in conurbations and with good facilities become more desirable. This will mean that their prices rise while the sub-prime group drops increasing the disparity in prices between prime and sub-prime.

Spanish coastal properties will be another sector to suffer if they do not have rapid access to the coast. The description "coastal property" has been abused so that it includes properties even a couple of miles or more from said coast and therefore it is easier to make a segmentation in this area. My own opinion is that if you cannot walk comfortably to the beach with all your things for a day by the sea in hand then you do not have what can be termed a coastal property. First line property with uninterrupted views of the sea and even second and third with good sea views will hold their value quite well because evidently they have a prime position and there is a limited supply. Anything further back can no longer be considered prime and the segmentation is evident in the disparate prices.

What type of property will hold its value? Large city centres are good bets as people move ever more so into cities and large towns to look for work. These areas keep their value as the demand curve outstrips the supply curve in almost every case. A city centre flat is a city centre flat and nothing can create more space in those cities meaning there are limited numbers available because of planning restrictions and replacement new for old. The centre of a city therefore is a segment. Spanish cities have no more land available for development in the centre of so there is very little possibility of supply outstripping demand if people continue moving to the city,something that continues to be the trend for the whole of Spain.

Other properties that will hold their values are those that have a little something special, spectacular views, fantastic and timeless design, built in and unobtrusive security features, shopping and leisure facilities and more. When you wrap all of these things up into a whole in just one property then you have the perfect property investment which is bound long term to hold its value and you also get quite a nice place to live too. It is the perfect segment.

Graham Hunt is an estate agent in the Valencia region of Spain with a decade of experience in the field and a two decade history in Spain. Some examples of perfect property investments can be found on our website of course, Valencia Property, but the same applies all over Spain in the prime areas.

Go to the websites http://www.valencia-property.com and http://www.houses-for-sale-in-spain.net as they are considered to be filled with high quality, great value properties and more importantly excellent information about the process of buying and selling property in Spain and lifestyle issues in Spain. If you require more information then send an email by clicking on the top of the first website in this resource box.

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Costa Blanca move

Well as the winter drags on and on here in the UK myself and my wife are really looking forward to taking a short holiday in Spain. While we are there we will be looking at property for sale as we intend to move to the Costa Blanca in the very near future.

We have several villas and apartments to view and have narrowed the search down to the ones we like the look of and of course the price. It appears that prices are still falling in some parts of Spain so bargains are there to be found. If you are moving from the UK it is worth keeping an eye on the exchange rate, with the Euro struggling you could get more for your money.

There are many specialist removal firms who will make the move easy although if you are thinking of buying ready furnished you may only need to transport yourself. The most cost effective way of getting to the Costa Blanca is of course to fly. Traveling by ferry to France and then driving is probably the next cheapest with the ferries from Southern England to Santander being quite expensive but having the advantage of being more relaxed.

You can find more information on moving to the Costa Blanca and other parts of Spain on the Blog site listed below, there you will find regular updates and useful links to estate agents, travel agents and other essential services required for your move to Spain.

Gordon Bloomfield (c) 2010

http://spanishpropertymarketupdate.blogspot.com

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