Investment property

I'd say that you would 'realise' that property investment in Spain is a horse of a very different kidney and far more likely to result in grief and heartache than profit.

Don't confuse it with the market in UK, there are few parallels.

If you've got a spare £350-400k laying around then there will be myriad easier and more certain ways to make it work than getting into the Spanish housing market be that via rentals or buying and selling.

Although the property market in Spain seems reasonably bouyant at the moment with lots of new building going on in certain areas some suggest there may be a bit of a crash coming due to the fact that after Dec 31st. Brit landlords, instead of enjoying a 19% tax margin after allowances for maintenance and mortgage interest, will overnight be facing 24% with zero allowances and for many that may be simply unaffordable leading to selloffs or repossessions. 

Likewise, if you read the neutral reports, from independent bodies, not the ones the selling agents guide you towards, you will discover that the general view is Spanish property in the Costa regions is over valued and likely to flat line, or fall back in the coming year.

The recent "boom" has been driven by new builds, often in sub-prime locations, which have been priced at up to double the 2nd hand market. Initially these sold and 2nd hand sellers pushes their prices accordingly. But in the last half of last year new build sales flat lined so developers have started to drop prices to move stock. So the 2nd hand market will need to adjust soon too. 

Add that to what Movingon said and you have a recipe for at best a small drop or flat lining prices, at worst around a 20-30% correction, downwards.

Next time you get an email offering you a once in a lifetime chance to double your money by investing in a new currency, take it. You've more chance making a short term profit from it than Spanish property.

This is worth a read, and the author is worth a follow too.

https://www.linkedin.com/pulse/spains-overseas-market-falling-flatlining-barbara-wood

It covers the first half of 2019, I'd at least wait until the report for the second half is available before splashing any cash.

Hi Pc,

With the investment level you have available, I'd be looking at the UK property market, rather than Spain.  ROI on my UK property is currently running at 18% and I've only owned it for 3 years.  Also, the tax regime in the UK for landlords in the rental market is more favourable than Spain.

Even on the basis of the very little information you've provided, I'm prepared to say, categorically, do not invest in Spanish property if you're expecting to make a reasonable (any?) return on your investment.

Kind regards, 

Kim

Agree with Kimmy.

Keep property investments in the UK, we have looked at Spain and other markets for investment and decided it’s not for us. We are building a holiday home here but that’s not in our portfolio. The UK has been and will continue to be the #1 place to invest in ‘bricks & mortar’, for over 30 years we’ve built up a solid investment in properties, predominantly in the SE & larger northern cities giving a superb return. In the medium to long term it’s a solid and safe choice and giving returns that I cannot get elsewhere with the security it affords.