News: Why invest in real estate in Spain now?

If you have savings, you know that it is currently of little use to put it on a savings account.

In most countries it is hardly possible to get more than 1% or even 0.5% interest and usually you also pay wealth tax or income tax. Partly due to inflation, your money in a savings account is actually only worth less. But there is also a much brighter alternative: invest in a property in Spain!

But why invest in real estate in Spain right now? The specialists at Nelemans Real Estate, brokers on the Costa Blanca, would like to give readers some reasons to invest in real estate in Spain.

Living in your own money

Do you also dream of waking up in your own home on the Spanish Costa Calida or the Costa Blanca? Where the sun almost always shines and it is wonderful to stay.

Imagine yourself; have breakfast in your garden in the Spanish sun, close to the sea. Then enjoy a morning walk along the beach, drink a cup of coffee on the boulevard and then enjoy a meal in one of the many typical Spanish restaurants.

Increasing number of home sales

The Spanish housing market has gone through a deep valley, but has risen rapidly in recent years. According to the Instituto Nacional de Estadística (National Institute for Statistics of the Ministry of Development), in 2018 alone, 78,800 houses (+ 14.7%) were sold in the Valencia region, a large part of which in the province of Alicante. In the Murcia region, sales increased to 16,387 houses (+ 24.3%).

Due to the increasing demand, the prices of homes are now rising for the fourth year in a row. Now investing in and investing in real estate in Spain can therefore be particularly lucrative since a further increasing return is also expected for the coming years.

Take advantage of low mortgage rates now

A second reason why real estate in Spain is becoming increasingly popular is the persistently low mortgage rate. This is deliberately kept low by the central banks and the expectation is that the mortgage interest rate will not rise soon.

The Spanish banks are less and less reluctant to provide mortgages for part of the purchase price. As a result, you can currently finance a property in Spain at a fixed low interest rate, so that the monthly costs are low. The financing of real estate in Spain is therefore becoming more attractive. This also creates extra demand and thus rising prices.

Rent a house

If you invest in real estate in Spain, you invest in a house where you can celebrate your holiday yourself, but you can also generate an income with it. Through holiday rental websites like Airbnb and HomeAway you can rent out your property to tourists. This allows you to recoup your annually recurring costs for, for example, property tax and maintenance and perhaps even make a (substantial) profit.

In general, estate agents in the area can put homeowners in contact with property management companies that can arrange the complete processing of reservations, cleaning and receiving guests. So you have nothing to worry about and benefit from financial benefits, now by letting and in the future by a possible sale of your Spanish property.

More information

Would you like to know more about investing in Spanish real estate? Nelemans Real Estate specializes in buying and selling homes on the Costa Blanca.