05.30.07
Posted in Fuerteventura, Real Estate Agents at 3:27 am by admin
Property sales in Fuerteventura are increasing every year. As the island becomes more and more popular we’re seeing many lucrative real estate opportunities (including new developments and off plan) (www.montanaroja.com) spring up all over the island. Investment property in Fuerteventura is now in big demand. It’s one of the most sought after areas on the archipelago.
Fuerteventura is the second largest of the Canary Islands. It’s located just 100 kms from the Western Sahara Desert on the African mainland.
This paradise island enjoys over three thousand hours of sunshine a year and is home to some of the best beaches on the Canary Islands. Fuerteventura has miles and miles of (often isolated) white sandy stretches with pristine clear waters that are warm all year round. Even during the busy summer months, you’ll be able to find a secluded spot for yourself. The island is perfect for all kinds of water sports.
The winter swells of the Atlantic and the summer Trade Winds make Fuerteventura a surfers’ paradise. It’s also very popular with scuba divers and sailors, who are drawn to these crystal clear, blue Atlantic waters – home to dolphins, whales, marlin and turtles.
The climate on Fuerteventura ranges from 17°C in January to 25°C in August, making it a popular winter and sun destination. With all this it’s no wonder people are choosing to make this their new second home.
Investment options (Off plan/Buy to let)
With an off plan investment you buy property in a new development at a low price and normally sell it at a profit either prior to completion or when the development is finished.
The reason that off plan properties are priced so attractively is so that the developer can make a quick sale. The developer will try and sell units as quickly as possible, in order to reduce their required capital outlay and minimize their own risk.
In buy to let situation, you purchase a property, rent it out as soon as possible and ideally the rent should cover the cost of your mortgage.
Buyers guide
If you’re looking for a mortgage in Spain you’ll be offered 70% of the purchase price of the property. It’s highly advisable to get a “Residencia” (Residence Card) as soon as possible. With this you’ll be offered a loan of 80%.
Before purchasing a property in Spain or on the Canary Islands, you should get legal advice and representation, the same as you would back in the UK or Ireland. Choose a local, English speaking, Spanish lawyer (there’s plenty of them). The fee is usually between 1200 to 1500 euros.
Buying a home on Fuerteventura is simple and easy. You’ll find that most of the real estate agents can provide advice in all major European languages. Mortgages are readily available and there are plenty of new developments, off plan and buy to let opportunities.
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Posted in Lanzarote, New Development at 3:22 am by admin
Spain has always been looked upon as a safe and steady investment area. Property investment in Spain has been rising steadily since as far back as the late 1980’s. Every year more and more UK investors are looking for properties for sale here. In 2005 30% of buyers in Spain (including the Balearic and Canary islands) came from Britain. At the moment there are over 1.1 million holiday homes in Spain owned by foreigners, half of whom are British.
Why choose Spain?
It’s got everything – the climate; the beaches; the cuisine; the nightlife; the infrastructure; spectacular landscape; architecture; music; culture; and a massive range of outdoor sports available both on land and in the sea. It also has one of the lowest mortgage rates in Europe.
With all this, it’s no wonder property investment in Spain is such a popular option when it comes to investing overseas.
Buying a property in Spain
The process of buying a property in Spain is very straightforward. Although you hear “horror stories” these are very isolated incidents. The vast majority of people successfully purchase here with out any problem whatsoever. The whole process can be completed within a matter of weeks.
First you need to establish a realistic budget. Think about what you really “need”, not just what you really “want”.
If you need a Spanish mortgage, you’ll be offered a loan of 70% of the purchase price of the property. If you have your Residencia (Residence card) you’ll be offered 80%.
With some banks, it’s possible to get a loan for even more. Some of them base their offers on the valuation of the property not the purchase price, so if the valuation is a lot higher you might be able to secure a mortgage for up to 100%.
In Spain, the banks normally charge between 1 and 1.5% of the loan amount as an arrangement fee. You can avoid this, by buying on a new development and taking over the builder’s mortgage.
Property Investment Options
Two popular options are purchasing off plan and buying to let.
Off plan can be very lucrative. It’s suitable for anyone who wants to make the most out of their investment and doesn’t immediately need to live in the property. It’s very simple – you buy property in a new development at a low price and by the time it’s completed it has gone up in value significantly, leaving you free to live in it, rent it out, or sell it at a profit.
If you buy to let, you purchase a property solely to rent it out. If properly planned the rent should cover your mortgage and if you’re lucky you might even have some money left over. In a buy to let situation it’s very important to study the letting market in your chosen area beforehand.
Although prices are continuing to rise, Spain still remains as attractive as ever – the sun, sea and the laid back Mediterranean lifestyle continue to draw more and more prospective overseas homeowners into the market every year.
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