Buying property abroad
is not like buying stocks and shares where you can
sit back and watch your investments perform without
any effort from you. With stocks and shares you
can wake up in the morning and find the value of
your shares have disappeared overnight. You have
a lot more control over a property investment, as
properties tend to be more stable and they are bricks
and mortar. It is important, therefore, to have
a balanced portfolio of investments.
Many people are looking to invest their money in
property abroad because they can buy more property
for their money and rent the property out when not
using it themselves.
You can purchase a property abroad for as little
as €70,000. A price like this is impossible
in Ireland.
When thinking of purchasing abroad you have to consider
if the property is a pure investment or for both
investment and your own use. If it is purely for
investment you should consider a location where
you have the option to do a long or short let. Long
lets require you to have a lawyer draw up a lease
and you need to be careful about doing a lease above
six months because in Spain tenants gain rights
more easily. Short lets are much different, so if
you buy an investment property in Spain consider
buying in or near a town, or near the beach where
you have a better chance of renting regularly.
Spain remains a good location to purchase because
the climate is very suited to Northern Europeans
and the infrastructures and health system is good.
According to many one would have been very wise
to have bought a holiday home or retirement residence
in Spain two years ago. Varying from area you
would have seen a 30% rise in the value of the
property. The upward trend in prices continues
and it is a very good time to make that purchase.
Don't wait until you retire because in the meantime
you are missing out on all that lovely sunshine
and in all honesty do you think you could afford
a home abroad in 10 years time?
A Spanish home costing €100,000 now could
cost around €300,000 in 10 years with a 15%
increase for the first two years and a 10% increase
thereafter. So don't wait around buy now!!!!
|