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"SPAIN
A GREAT INVESTMENT" SAYS SPAIN'S LARGEST BANK
If
proof were needed that buying a home in Spain is a good investment,
a report from the country's largest savings bank
should provide it.
La
Caixa bank forecasts that Spanish property prices will rise
10% this year which is close to forecasts
of UK property inflation.
The
bank also said that it did not expect a fall in property prices
in the foreseeable future and dismissed concerns raised by
"certain international organisations."
Confidence
in the market is also illustrated by government figures showing
a record number of Spanish housing building starts in 2005
- a total of 729,652 starts. This is an all time record.
Three
quarters of these new homes were apartments and around half
of all starts were in 12 of Spain 's 52 provinces including
Malaga , Almeria , Murcia and Valencia.
WHY INVEST IN SPAIN?
Over a considerable number of years, Spanish property values have consistently showed excellent year-on-year growth and Spanish property investment continues to be popular with people wishing to retire abroad.
Spanish retirement property prices have seen excellent returns.
For example, one bedroom apartments
at Palazzo Vivaldi which
were sold three years ago for an average 96,000 Euros (approximately
£65,500) are now selling for around 150,000 Euros (approximately
£103,500). This is around 58% increase in less than three
years.
In addition, properties near the sea will almost certainly retain a premium price position as coastal development land becomes ever more scarce and the focus of new build developments moves further inland.
INVESTMENT PROPERTIES AND US
WPML takes great care to assess the investment potential of developments on its roster. Build quality and location are prime factors as is availability of all local day-to-day amenities.
These factors, which are vital to the sales success of a retirement development whether in the UK or in Southern Spain, are the motivating reasons for WPML agreeing to market a development.
WPML will not attempt to market developments which we believe do not have strong investment potential for purchasing clients.
WHY INVEST OFF-PLAN?
Investing off-plan is sometimes difficult for some homeseekers. Many people say they like to see the finished property - to see and touch the finished bricks and mortar - before putting their money down. Others just cannot visualise how the development will be when finished, despite the plans, visuals and developers' models.
However, from an investment perspective, waiting may be completely the wrong tactic.
Why? The reasons are:
- This is when the property price is lowest. It is the time when the developer needs to start to sell his properties to feed his cash flow and reassure his bank that the development is going to be a commercial success. The developer fixes his initial prices to attract as many early reservations as possible.
- As soon as the building work is finished, the landscaping has been completed and the cranes and other building paraphernalia has gone, the property prices almost always increase. This is when the people who did not buy off-plan arrive to view - and have to pay the higher price.
- Many investors buy at the off-plan stage and put the property on the market at the higher price as soon as it is finished. When they sell, they net a tidy profit for themselves.
- Buying off-plan gives the best choice in terms of position, views etc. Waiting until the property is finished usually offers an inferior choice.
So
buying off-plan makes commercial sense and also offers the best
location choice is any particular development.
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