Fresh Invest

For many years Spain has been “a place in the sun” dream for UK investors.

The Country:

Spain is situated in the south western corner of Europe with Atlantic and Mediterranean coasts and land borders with France and Portugal.

As well as the main land there are also The Balearics in the Mediterranean and the Canaries in the Atlantic, these are easily accessible and offer great variety both as holiday destinations and overseas investment opportunities.

Euro currency and a stable government that recognizes the power of tourism and actively promotes it help to maintain Spain as a holiday and tourist destination.

Property Values:

For how many years has Spain been "a place in the sun" dream, and the retirement option for many of us.

More recent news of falling markets and poorly researched purchases have soured the dream however the fundamentals are all there; excellent climate, beautiful beaches, spectacular scenery and historic towns.

Many UK developers have been active in the country providing good quality investment / retirement property and although global downturns have resulted in a fall in value the €-£ exchange rate has bought back some of this value.

Investment:

Some will go regardless, that’s where they want to be. Yields have always been low in Spain but as prices fall so your respective yield return rises and if you convert back to £ you might get currency return as well.

Investment is about timing so look carefully at the moment there should be bargains, check out those "fincas", apartments, beach houses, marina property and villas, Capital appreciation may take a while but if you are looking to buy to let to eventually live now might be the time.

Purchase Procedure:

There have been quite a few horror stories about developments bulldozed because there is no planning or the title is incorrect and investors must take professional advice to ensure that value is maintained.

Charges are levied against property and can be transferred with the property so all charges need to be discharged if you need clear title.

Purchase and sale costs can add about 12% in costs in a round trip transaction including property transfer tax and agents commission.

Summary:

The market is in the process of re-adjustment, over supply and some horror stories have tarnished the market but the fundamentals are all there.

The government will be doing their utmost to stimulate the economy and enhance the infrastructure.

When prices dip there are some good purchase opportunities, again, life style choices are the main driver for investment or occupation, if you can live with currency fluctuations and low or no appreciation for a while then Spain will be your life style choice.