For many British house buyers, the UK property market during Brexit is worrying – and so many are casting their eyes overseas. Spain is an immensely popular location for buying for investment, especially as holiday lets in tourist areas. Spanish property prices increased by 8% over the last year, a strongly positive but not overheated figure. But if you’re buying an investment property in Spain, what should you look out for?
Location, location, location
As they say, it’s all in the location – an for an investment property in Spain that you’re looking to rent out, then you want somewhere with a profitable season. That could be a shorter season with higher yields, such as in slightly inland areas of the Costa Daurada. However, many people are now starting to look at extended seasons with ‘dual seasonality’ – two attractions. In areas such as La Manga, being close to both the sea and top golf courses like Real Club La Manga provides an attraction to holidaymakers in the summer and golf players in the ‘low season’, which is in fact the golfing season.
A ‘fiddly’ property can be a pain to maintain when you’re not there. Choosing a sleek, modern design, with easy wipe-down surfaces, sturdy materials and making sure that it’s up to the latest building codes – last modified in 2009 – can make sure that upkeep is simple. Equally, an extensive garden can be nice in a permanent home, but will require a lot of care from someone else in a letting property, whether it’s mowing or just keeping it alive in the more southern reaches of Spain! Many people choose to go for an apartment or at least to keep outdoor space tiled. That way, maintenance is only occasional, and it’s still in-keeping with an authentic ‘Spanish’ interior style.
Characterful or quirky is great, but these should generally be limited to eg architectural features or quirks of the building. Personal touches like family photos, or extremely bright décor, won’t necessarily appeal to the widest possible market. Generally, interiors should be kept relatively neutral – a bit of a ‘blank canvas’. That way, no-one will find it off-putting (and it’ll be easy to replace, should the need arise!).
Remember that some municipalities in areas that are extremely popular with tourists have stopped handing out tourist licences. These include Palma de Mallorca, parts of Seville and areas of Tenerife. You can always double-check with your local Ayuntamiento on their rules, as the do differ from town to town. Remember also that tourist taxes differ between the different Autonomous Communities.
Somewhere that you love
If you’re going to be spending part of your summer there too, don’t forget above all that it needs to be somewhere you love! Check out our property portal to find your perfect Spanish investment property, and don’t miss our free buying guides below.
Make your move to Spain as smooth as possible with expert advice in our comprehensive, free Spain Buying Guide.
Find out more about funding your dream retirement in Spain with our free Spain Finance Guide.
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