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Costa Blanca property investment offer great returns

By: . 25 May 2017
Costa Blanca property investment offer great returns

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.

Click here to view this property, or contact us today and find out how we can help you make your dreams of owning a property in Spain a reality.

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.


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