If you have savings, you know that putting them into a savings account is currently of little use. In most countries, it is nearly impossible to find an account with a 0.5% interest rate, much less a 1% interest rate, and you must often pay asset tax and income tax on the earnings. Partly as a result of inflation, the money in your savings account is actually worth less. In order to get more out of it, you can try investing in stock. However, there is a much brighter and sunnier alternative: invest in a home in Spain! Why invest in property in Spain now? Well, we are eager to tell you.
Picture it: breakfast in your own garden under the Spanish sun, close to the sea. After that, a fantastic morning stroll along the beach, with a cup of coffee in your hand as you walk the promenade; later a stop at one of the many characteristically Spanish restaurants for a fine meal.
The Spanish residential market went through a difficult period but has been sharply on the rise over the past few years. According to the Instituto Nacional de Estadística van het Ministerio de Fomento (National Institute for Statistics from the Ministry of Development), 10,905 homes had already been sold in the Alicante region during the first quarter of 2018 (an increase of over 18% compared to the previous year) and 2,236 mortgages were approved (an increase of nearly 24%). Due to the increasing demand, the prices of homes have risen for the fourth year in a row. This means that getting your foot in the door now and investing in Spanish property can be particularly lucrative, given that increasing returns are expected in years to come.
A second reason that property in Spain is becoming progressively more popular is the consistently low interest rate on mortgages. It is not expected that mortgage interest rates will rise quickly any time soon as central banks are deliberately keeping them low.. Spanish banks have become less and less reserved about providing mortgages for a portion of the purchase price. This currently enables buyers to finance a home in Spain at a low, fixed rate with low monthly taxes. This makes financing property in Spain even more appealing. It also creates additional demand, which results in increasing prices. Read more about obtaining a mortgage in Spain here.
If you invest in property in Spain, you will be investing in a home where you can enjoy your holidays, but it can also be used to generate additional income. Holiday rental websites like Airbnb and HomeAway enable you to rent out your home to tourists. This allows you to earn back annual expenses like property tax and maintenance costs, and to even make a substantial profit. We can assist you in contacting property management companies that take matters like booking reservations, cleaning and receiving guests entirely off your hands. This takes a great deal of work off of your shoulders, so you can enjoy reaping the financial benefits of your investment: first, through rentals and later through the sale of your Spanish home.
Would you like to know more about investing in Spanish property? Rayos de Sol specialises in the purchase and sale of residences along the Costa Blanca and Costa Cálida. We would be happy to answer your questions. Click here for our contact information and here for more information about our services.
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