News: Costa Blanca property investment offer great returns
Written by Inmo Investments - 25 May 2017
Investing in property in Spain
Short term renting can make a 7.0% return
There's nothing quite so safe as bricks and mortar and that's why, traditionally, property has been the go-to first choice for people looking for a safe long term investment.
But dogged by uncertainty, and with concerns developing about rising inflation, the UK property market is not appearing quite as attractive for savers and investors when it comes to property investment.
Compounded by added pressure from the very real possibility of the first increase in government interest rates for nearly a decade, property prices in the UK are experiencing their first downturn since 2012.
But with the UK property market static, Spain's property market is shaping up to be a viable alternative for savers, investors, and retiree's looking to secure a robust investment that will weather well for years to come.
Strong demand for property on the Costa Blanca continues despite uncertainty within some parts of northern Europe, and with prices on the increase, the recovery in the Spanish real estate market looks set to sustain it's positive momentum.
But another factor that many investors often overlook is Spain's popularity, and that, when combined with the relatively cheap cost of homes and their plentiful supply, can result in a healthy investment choice with scope for significant returns in the future.
Looking at one of our own properties as an example, this charming modern apartment in Playa Flamenca has superb rental potential.
The apartment has 2 double bedrooms offering spacious accommodation for up to 6 people. The home comes complete with a large swimming pool, and it's popular location with the beach, bars, and restaurants within easy walking distance, will make it a sure-fire hit with potential holiday makers.
This apartment is on the market for just €115,000. It's already a bargain at less than £100,000 at today's exchange rates.
Rent the apartment out privately for £76 GBP per night - just in the summer (June, July and August), and the home will generate a gross income just shy of £7,000. £6,992 to be exact, representing a gross return on investment of 7.0% in just three months.
And if you think that's going to be difficult to do, just take a look at this property currently for rent on AirBnB - the same type of apartment in the same community. Between the beginning of May until the middle of September the apartment is fully booked all bar seven days.
Of course, this does not take into account the long term costs of ownership (less than €50 per month for local taxes and community fees), but then this does not account for the long term increase in the value of the property, any additional money an owner might make on the cleaning fees, or the opportunity to rent the home beyond those three summer months either.
But with Spain such a popular destination with holiday makers and tourists, and likely to remain so for years to come, the performance and surety of an investment property on the Costa Blanca is difficult to beat.
Please note: Inmo Investments is a registered Real Estate agency in Spain. We are not legally qualified solicitors, nor are we qualified to provide legal or financial advice, and this editorial publication is provided for information only based on existing publicly available information. We have taken every reasonable precaution to ensure the accuracy of the information, and the authority of the sources of information at the date of publication.
Town house - Resale - Villamartin
Spain - Costa Blanca South - Villamartin136.000€
Well presented 2 bedroom 2 bathroom south facing townhouse close to all amenities and golf.Comprises good size south facing front garden with off road parking,glazed in terrace/breakfast room,good size lounge larger than avrage,separate kitchen,2 double bedroom with access to south facing terrace,private roof solarium with good views.Property is in very good condition and sold unfurnished apart from white goods.120 2 2
Villa - Resale - Campoamor beach
Spain - Costa Blanca South - Campoamor660.000€
Extensive villa for sale situated in Dehesa de Campoamor only 500m to the Blue Flag beach,set on a fantastic private plot of 800 m2 and 350 m2 build size. The villa offers two floors, on the first floor is the spacious dining room and living room with exit to a covered porch, kitchen, 1 room, 1 bathroom and a master bedroom with bathroom. On the second floor there is a hall and 5 bedrooms, each with a terrace and 2 bathrooms, big garden,pool end the barbecue. Villa located in a chamring...350 800 6 3
Detached Villa - Resale - Lo Crispin
Spain - Costa Blanca South - Algorfa249.950€
This superb large detached property for sale is presented in excellent condition and has been maintained to a very high standard. The property offers a spacious family accommodation distributed over three levels. The property has a good size plot with space for an outdoor kitchen and seating area along with ample space around the private heated swimming pool. There is also a private drive from the communal, gated drive leading to a basement garage area.A Staircase from the front garden...375 4 3
Villa - New build - Mar Menor
Spain - Costa Calida - Murcia - La Manga Del Mar Menor3.950.000€
New construction - exclusive 5 bedroom luxury villa with panoramic sea views - Cabo de Palos. With the studied design of the villa based on clear lines, cubic and functional, the Swiss architect MASSIMO DI CAUDO seeks to break with the traditional housing developments typical of the Spanish coast.A microclimate is extended to each living space thanks to its design and distribution of interior spaces, which together with the thermal and acoustic insulation of the villa, creates a harmonious...585 1.000 5 5
Villa - New build - Los Alcazares
Spain - Costa Calida - Murcia - Los Alcazares215.900€
Promotion of detached villas situated in Los Alcazares, Murcia . Each villa provides 2 bedrooms and 2 bathrooms, a light and airy living/dining area and a fully fitted kitchen. Outside space boasts a private garden surrounding the property and upstairs is a private solarium, perfect for all year round sun. The villas are all sold with necessary extras including pre-installed air conditioning, double glazing, built-in wardrobes and a garage. More extras are available. Situated only...90 350 2 2
Apartment - Resale - Beach
Spain - Costa Blanca South - Torrevieja249.990€
Immaculate apartment boasts 3 bedrooms and 2 bathrooms (1 ensuite). Situated only 250m to the popular Playa Los Locos beach , the apartment provides an open plan living and dining area with an American style kitchen. Outside space includes a spacious South facing terrace with seaviews, communal pool and children's play area. Sold fully furnished including pre installed air conditioning, underground parking space and storage room. Within walking distance to all local amenities, contact...114 3 2
Villa - New build - Torre de La Horadada
Spain - Costa Blanca South - Pilar de la Horadada3.400.000€
Stunning new build villa for sale situated only 100 m to the Las Higuericas beach and boasting an outstanding location. The super-exclusive, luxury and completely key ready villa is set on a select development and offers 7 bedrooms, 4 bedrooms have panoramic sea views, 2 full bathrooms, 2 W/C, open plan lounge/dining room with picture windows for a light and bright living experience, fully equipped open plan kitchen with integrated white goods, including dishwasher, microwave, wine...875 7 4
Villa - Resale - Las Filipinas
Spain - Costa Blanca South - Villamartin290.000€
Detached villa for sale with sea views in the urbanization Las Filipinas , Villamartin on the Orihuela Costa . The villa offers 160 m2 of living space with large plot of 930 m2. It consists of 3 bedrooms, 2 bathrooms, kitchen, large living room with fireplace, terrace with barbecue, storage room, garden, private pool and garage.Property is located in a very popular area close to all services: bars, restaurants, supermarkets; surrounded by golf courses, numerous green areas of pine trees...160 930 3 2