Spain is a great choice for buying property abroad according to business and finance magazine ABC Money.
While Brexit continues to worry Brits buying property in Spain, the article argues that by 2020 political uncertainty might dissipate and Brexit be resolved. As it notes, “If this does happen markets may begin to stabilise, and there will be far less volatility, for example in currencies. Understanding the costs can make it easier for investors to feel confident.”
However, with Boris Johnson as the new Prime Minister and a new cabinet committed to “leaving the EU on or before 31 October, ‘no ifs, no buts,’” it is hard to consider what kind of Brexit resolution there will be.
Nonetheless, it is hard to change your decision to buy abroad once you have made up your mind. Of course, Brexit might be something that will remain a constant source of anxiety, but this does not mean that it can cancel out your decision to buy.
Spain as an ideal choice
If you like feeling part of community, then the large British expat community living in Spain might be enough reason to convince you. More importantly, life in Spain is relatively cheap, property value is on the rise and the quality of life is higher than that of the UK. Many expats choose sunny places such as the Costa del Sol and Marbella, while others prefer the bustling life of cities such as Barcelona, Madrid and Seville.
The Spanish property market is currently enjoying a healthy rise, and this is not just temporary. According to a report from Marbella’s real estate agency Panorama, residential property prices rose an average of 6.7 percent across Spain. Hundreds of new modern houses are being built in the greater Marbella area (including Estepona-East and Benahavís), while 20 year old buildings are being refurbished to the highest standards, with many high quality properties for sale.
The report points out that according to the Ministry of Public Works and figures of the National Institute of Statistics, “2018 ended with the best results of the last ten years, with 557,919 residential properties sold (not including public housing sales) of which 50,875 were newly built properties and 507,044 sales of resale properties. These figures represent an increase of 9.4% over the previous year with a sharp upturn in sales noted in January 2019.”
Prices are now returning to those seen before the financial crisis, something that means that they will continue to grow. In this respect, ABC Money argues that “investing in 2020 should see you with a property that will continue to grow.”
Buy to let homes
In the recent years, many are deciding to rent their holiday homes and increase their income, getting a healthy return on their investment. Even if you use the property as a holiday home, you can still rent it during those months you are back in the UK. Since Spain, like many other Mediterranean countries, is a popular holiday destination, with a holiday market that is growing, such a decision makes perfect sense.
A great time to invest in property
With interest rates being very low, now is perhaps the ideal time to get a loan and invest in the Spanish property market. With savings being low and investment opportunities in other countries poor, investing in a property might be the safest way for return on investment. According to ABC Money, “with the Central Bank of Spain forecasting a 10.5 per cent return on residential properties now is the perfect time.”
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