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 - Lomas del Golf
Spain - Costa Blanca South - Villamartin145.000€
An extensive townhouse for sale in Lomas de Golf in Villamartin. The property offers accommodation across two storeys, with 3 double bedrooms with fitted wardrobes, a full family bathroom, a downstairs WC/cloakroom, a fully fitted and equipped kitchen, and a bright and spacious living room. Both upstairs bedrooms feature patio doors leading to sunny private balcony terraces, and a wrought iron spiral staircase leads up to a rooftop solarium with distant sea views. The property...3 2
Villa - Resale - Los Balcones
Spain - Costa Blanca South - Los Balcones550.000€
Impressive detached villa with stunning views in Los Balcones , provides 6 bedrooms and 5 bathrooms. Light and airy throughout, the villa boasts spacious rooms including the living area and an independent kitchen with pantry. The ground floor is distributed as guest accommodation with a separate entrance, providing a bedroom, kitchen/sitting area, bathroom, sauna and a laundry room. Outside space boasts an impressive 867m2 plot with a large garden and fruit trees, as well as a 10x5m...395 867 6 5
Town house - New build - Torreta Florida
Spain - Costa Blanca South - Torrevieja234.900€
Promotion of 6 spacious townhouses available for sale at Torrevieja starting from 234.900 € offering 3 bedrooms, 2 bathrooms, spacious lounge/dining area and a fully equipped kitchen with top of the range appliances. Living area available from 79 to 107 sqm. The complex offers spacious gardens and beautiful communal swimming pool and off road parking. Central location at popular Torreta area of Torrevieja. Packed full of necessary features such as air conditioning, double glazing and...80 3 2
Bungalow - New build - Los Balcones
Spain - Costa Blanca South - Los Balcones182.000€
Modern new build complex of top and ground floor bungalows in Los Balcones , finished to a high standard. Ground floor bungalows have a spacious garden area and the top floor bungalows offer a sunny solarium. Each bungalow comprises either 2 or 3 bedrooms and 2 bathrooms, spacious lounge/dining area and fully fitted kitchen. Charming complex boasts a spacious communal pool for adults and children, stunning gardens with views of the salt lakes and close to local amenities. Pricing from...72 55 2 2
Town house - Resale - Los Montesinos
Spain - Costa Blanca South - Los Montesinos199.995€
A unique opportunity to own a spacious family town house complete with integrated business premises in the lively Spanish town of Los Montesinos. The property comprises on thre ground floor area, a well establishes and fully equipped hairdressing, nail and beauty salon. The business comes part and parcel of the spacious family home with a pre-existing client base, which can be taken over by the new owner or a rental agreement can be arranged with the current owner and used as a ready made...172 3 3
Villa - Resale - Lo Crispin
Spain - Costa Blanca South - Algorfa119.995€
Built in 2004, this spacious detached villa at Urb. Lo Crispin , Algorfa offers an outstanding 140m2 of living space and comprises 3 double bedrooms, 2 bathrooms, sizeable lounge/dining room and separate kitchen, plus The property has a good sized under build which will easily convert into further living accommodation. Outside space offers covered front porch/ terrace, patio garden with onsite parking and spacious rooftop solarium for year round sun. Sold part furnushed and equipped with...140 3 2
Apartment - Resale - Las Ramblas Golf
Spain - Costa Blanca South - Las Ramblas120.000€
Charming apartment with panoramic views of the Golf course of Las Ramblas. The apartment offers 2 spacious bedrooms with fitted wardrobes, 2 bathrooms, kitchen, private parking space and storage room. Sold fully furnished and key ready. ocated in a quiet environment just steps from the bar and restaurant of Las Ramblas Golf.80 2 2
Apartment - Bank repossession - Mar Menor
Spain - Costa Calida - Murcia - La Manga Del Mar Menor157.300€
Modern apartment for sale on the Mar Menor, La Manga . the 8th floor apartment offers 78m2 of living space and comprises 2 bedrooms, 2 bathrooms, lounge, dining room and terraces offering an East and West aspect for morning and afternoon sun and boasting sea views. Sold unfurnished but equipped with private parking space in the underground parking facilities. Building with secure and lift access plus communal pool for residents. Situated at the Veneziola urbanisation a stones throw from...78 2 2