Spanish Investment Property
Buying propery off plan is often the most profitable way to see your investment appreciate. But your funds will be tied up for a good 12-18 months. The benefits are you often pay the funds in stages as the build progresses and you can have the property finished to your own tastes internally.
Great savings can be made buying property off plan because you are basically helping the developer finance the development. Typically you pay a 10% deposit and then 3 further payments of 30% at 6months, 12 months and on receipt of the keys. Remember there is more risk buying property this way. Always use an English speaking Spanish lawyer.
If you do decide to buy off plan always remember you are buying it to make money. This means it needs to be close to local amenities such as; the beach, family attracions, golf courses and shops. If you are going to be relying on rental income ideally the property should also be less than 20-30 minutes from an international airport. Although Spanish property slighlty inland has been seeing good capital growth of late.
Managing your property from afar can be difficult and it is advised that you get a managing agent. Their fees are typically 10% of the rental income. If you are doing weekly holiday lets, fees will typically be 15%. But this does include; key handling, cleaning, security checks on the property and the collection/forwarding of rental income. Letting agents can often do a better job of getting the poperty occupied, so in the long run they pay for themselves.