Live The Mediterranean Dream June 2018
Life on the Costa del Sol is now entering its peak season with the start of many of the coasts coolest beachside clubs & bar/restaurants opening parties. The climate is perfect for beach days and lounging around on super yachts. New boutique designer shops and classy restaurants are popping up all over the coast and the Costa del Sol is seeing a new lease of life with real estate moving quickly and prices steadily increasing again. But glitz and glamour is not all the coast offers, you can while away the days chilling in charming and affordable restaurants offering superb food and wine, both beachside and in the dramatic Andalucian countryside.
It’s getting extremely busy already with viewing trips and number of international buyers have increased again, with Costa Del Sol firmly at the top of everyones wish list. The largest single group of international buyers are still the British, with the French, Belgium’s and Scandinavians, gaining in numbers. So if you were thinking about finally taking the plunge into owning a holiday home or “buy to let” investment in Spain, then all signs are pointing at now being the perfect time to do so. If however you are thinking of selling, I would suggest calling us quickly for a free valuation and list your property while the market is busy. We always need more properties for our ever increasing number of buyers and already have clients waiting for reasonably priced apartments and villas in Benalmadena, Mijas Costa, Marbella, Nueva Andalucia, New Golden Mile and Estepona.
The general demographic of our buyers seems to be successful 45 to 55 year olds that have saved a nice nest egg, and looking to enjoy their investment by purchasing a luxury Mediterranean holiday home, some of whom decide to subsidise costs by renting out as much or little as they want. Some are thinking about retiring to their property later in life, others of selling their property for big gains in the future and many will be using rental income as a form of pension.
With increased levels of tourism for the fifth consecutive year, an incredible 82 million tourists opted for a sunshine holiday in Spain during 2017, this record breaking number of tourists now makes Spain the 2nd most visited country in the world. With demand outstripping the supply of quality rental properties in prime locations, now could be a great time to subsidise your Holiday home mortgage payments with rental income, or even go a stage further and buy a couple of “buy to let” investments. Gross yields up to 7% are often achievable in good locations.
As with any big change, there never seems to be the right time to stretch your self to move up market or indulge in that luxury holiday home in the sun. It’s more a leap of faith, and then you make it work. Often in the early days it can seem tight, but before long, it becomes easier and you then really start to see the rewards in lifestyle and monetary gain. Those that don’t even try calculated risk taking, although feeling safe, often settle for much less than they really want out of life. I hear people all the time say to me, how lucky I am to live in Spain and that they regret not investing in more property when the market was low. Well, here is your second bite at the apple, the stage is set for the market to only go in one direction. After a 7 year world recession, you can still buy properties at around 35% below their original prices, in a market that is steadily increasing in price. This is as good as it gets and if you’re not tempted now, you are probably never going to make the plunge.
The question is how much do you value your quality of life. Life is short and your time is valuable, however, so many people get caught in the rat race of working in gloomy countries from 9 to 5 and don’t even get to see the light of day except out of an office window. I remember leaving home every morning in darkness, working all day in London and then traveling back in the darkness. The highlight of my year was a 3 week holiday in the sunshine. It’s fact that in the UK and most Northern European countries, people are deficient in Vitamin D given by sunshine, which has many benefits including healthier bones, skin and more importantly enhancing mood and energy through the release of endorphins. So if you find yourself being a face book voyeur, watching others live their life in the sun, then why not make 2018 your time to be a partaker not just a spectator.
We often put obstacles in our own path to avoid risk or change, so here is a simple fact for the sceptical hard nosed businessman. Even if property prices only return to pre recession levels, that would still offer up to 35% capital growth potential. So, if you have savings sitting in a bank not giving a very good return, then you should seriously consider investing in prime areas like the Costa del Sol. Spanish banks will lend you around 60-70% of a property purchase price. You will need an additional 12% approx for all your purchase costs & taxes. Remember, you are not just investing in a bargain property in one of the worlds favourite destinations, you are also investing in a new chic Mediterranean lifestyle for your family. Basically a win win situation. Once you own a second home on the Costa del Sol, you will find you make good use of it, with many last minute breaks, long weekends and extended holidays. Finally giving you the lifestyle you dreamt of. After all, you only get one life, make it count and enjoy the ride.
Peter is one of the most published Costa del Sol property experts in both the UK & Spanish press, having spent most of his working life as a professional real estate agent and valuer. He is also the Managing Director of the successful “Overseas Dreams” Master Real Estate Agency with registered offices in both Marbella and La Cala de Mijas.
For more information on buying or selling your property on the Costa del Sol, contact Peter or any of his team on Tel: (0034) 951 551 444 or email: info@OverseasDreams.com