Why Invest In Spanish Property
No investment today offers the stability and simplicity coupled with the excellent return offered by investing in property. The stock market can offer high returns but it is a very volatile and dangerous place. This is especially true for the non-professional and there are so many extepnal factors that can effect your financial investment. Add to this the fact that the major stock markets have generally been underperforming and Property investment stands head and shoulders above other forms of investment.
Did you know that under currently proposed legislation you may be in a position next year to include your investment portfolio into your Self Invested Pension Plan (SIPP)?
Advantages of Investing in Property
Property is now the wise investors weapon of choice. No other investment allows you to purchase with other people's money (The Bank) and then pay this back with other people's money (the rental income from tenants). If you own property you can release equity against this, although there is no law that states that your property will increase in value year on year it is accepted that a well maintained property in a reasonable area will appreciate in value.
- 50% of individuals mentioned on The Times Rich List made their money through investing in property.
- A property worth just €4000 30 years ago would be today worth around €225,000.
- Equities or Stocks can be volatile, as with the .com crash. Property however is historically stable.
- It is well documented that on average the value of a property doubles every 7 years.
According to figures from FPD Savills Research, the total net return (including capital appreciation) on prime central London property was 18.6% last year. In the UK, the total net return was 16.3% and - a strong performance given that equities showed a loss last year.
The benefit with buying specifically for Investment is that you can remove the emotion from the purchase and look at the property as an investment vehicle, whether this means and selling at a substantial profit prior to completion carrying no redemption penalty or take the "buy to let" situation and generate a good reliable rental income, incorporating substantial capital appreciation.
Growth in Spanish Property Prices
The Graphs above and left show the average growth in property prices over the last 5 years in Spain and also highlight the areas which have seen the biggest appreciation. Its clear to see that a Spanish property purchase is an intelligent investment and this information from the Spanish government shows the potential to investors who are purchasing off-plan at well below the completed market value. When you consider this and also take into account the average growth in each area its clear to see how a Spanish property can be a valuable asset to your investment portfolio.
Fig. 1. Average price table for the regions of Spain (Source: Ministerio de Vivienda)
Fig. 2. Average prices of Spanish property over the years
An overview of IPIN Global
- Access to sourced properties
- Up to 5 years guaranteed rental income
- Enjoy deposits as low as 10%
- Nothing more to pay until completion
- Mortgages available
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