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Buying an investment property in Spain

Investment properties are a great way of supplying income, saving up money, or preparing for the pension. A large part of the properties for sale in Marbella and Costa del Sol are suitable for this. However, with a very active market there are many things to look out for, to get the best deals. We have extensive experience on the subject, and are happy to share this with our clients. There are several different types of investment properties, and it is important to know the differences. Each type suits different ambitions, demands and risks and therefore professional advice is beneficial. You are always welcome to contact us if you have any questions regarding investment!

 

Investment properties to rent out

The most common type of investment property is a house, villa or apartment which is bought with the purposes of renting it out, short or long term. A rental property generates both a monthly or seasonal rental income, as well as capital gain. If a mortgage is obtained, the owner is able to get tax benefits as well. The characteristics of the property are important to make the correct purchase with a high ROI. Read more about long term rental investments here, and short term rental investment here.

 

Investment Properties for sale below market value

Another popular option is properties for sale in distress, bank repossessions or a property bought from owners who are desperate to sell. These kind of properties are difficult to find, and the buyer often need be ready to close a deal fast. Purchasing a property in Costa del Sol on these terms can generate a very high ROI, but can also carry a high risk. Learn how to spot the perfect investment property to buy under market value, in this guide.

 

Investment properties to renovate

Properties for sale in Marbella or the surrounding areas, are often in need of light or complete renovation. Many properties are owned as investment or holiday property, used only few times a year. As a result, they are often not well maintained, and stays in their original condition. Combined with reasonable prices for construction work, it can be very profitable, and provide a high ROI. There is a many details to keep in mind, and important to avoid properties with legal issues. Learn all the tricks, and how to spot the right property, in our renovation section here.

 

Investment golf properties

A great part of the residents, expats, and tourists are also golf enthusiasts, and enjoy the many golf courses on Costa del Sol. And even those not playing golf, often appreciates the view of a beautiful landscaped golf course. Furthermore, peace and tranquillity is guaranteed if you own a frontline golf property. Aside from the aesthetic advantages from frontline golf properties, they also are very popular as holiday rental property. The clients are often returning clients, and tenants who take good care of the property. If you consider to buy a frontline golf property, read our guide to find the best one here.

 

Investment in Off-plan properties

Buying an off-plan property in Spain often offers a high ROI, simply by being among the first to buy. Very often the developer offers pre launch discounts on the off-plan apartments for sale. The discount is typical 3-10% of the official list price. As the project reaches different milestones, the list price will increase with 5-10%. With knowledge from the last 10 years of development, we can conclude there is 15-30% capital gains, in the period from launch to competition. There is many conditions to be aware of, so we advice you to study our section on off-plan property investment here, before buying.

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Why is Costa del Sol a good place to buy investment property?

Purchasing an investment property in Marbella or its surrounding can be beneficial in many different ways. The popularity of Costa del Sol, and in particular Marbella has been increasing steadily over the last three decades. Among several reasons, the fantastic climate with more than 320 sunny days a year, plays a large role in making Spain a popular place to invest. The great weather, sea and mountainous surroundings is also a key factor in the area being known as Costa del Golf, with more than 70 high-quality golf courses. The golf season last almost all year round, something very unique in Europe. Several of the courses are among the highest ranked in Europe, for example Valderrama which was crowned best European golf course 2017.

Another factor is the international reputation and popularity. Both Marbella and Puerto Banus are among the three most popular tourist destinations in Europe. The political scene is stable, and ownership of investment properties is without complications. Read more about the many reasons Costa del Sol is a great place to own a property in our guide here.