01.02.08

Property in Spain – Canary or Balearics

Posted in Articles, Canary Islands, New Development, Real Estate Agents, Spain, Tenerife at 4:19 am by admin

Spain’s two vastly different island groups attract thousands of holidaymakers, homebuyers and investors every year.

The Balearic Islands located in the Mediterranean Sea are known for their legendary club scenes, pristine beaches, affluent lifestyles, fancy cars and big yachts.

The Canaries, on the other hand, are a nature lover’s paradise, with an amazingly diverse landscape made up of volcanoes, deserts, lush green forests, epic mountains and gigantic cliffs.

Along with the price of property, one of the biggest differences between the two is the climate. The Canaries, known the “Islands of Eternal Springtime” have what’s described by many as the best climate in the world. It’s warm and sunny all year long, even in the depths of winter. The Balearic have a similar climate to mainland Spain.

The Balearic Islands
The Balearic Islands comprising Mallorca, Ibiza, Menorca and Formentera are located in the Mediterranean Sea off the coast of Valencia, Eastern Spain.

Mallorca, a very popular holiday destination – particularly with British and German visitors – has a thriving nightlife and large expat community.

Its beaches range from quaint isolated coves to huge stretches of sand that get packed with holiday makers from all over the globe. The north is arguably the most beautiful part of the island, with its unmatched rugged charm.

Palma de Mallorca, the capital of the Balearic Islands was recently voted the “best place in Spain to live”.

Ibiza shot to fame during the late nineties when dance music and ecstasy were all the rage. It became the “club capital of Europe” with some of the world’s top DJ’s playing in the island’s mega clubs. Places like Manumission, Café del Mar, Pacha, Es Paradis and Space became household names even outside of the dance community.

Nowadays, Ibiza is a popular festival location with a thriving gay community. During the quieter winter months it can be a deserted paradise – the perfect getaway.

Menorca is a much more relaxed and conservative island – perfect for families with kids. It’s famous for Mayonnaise!, of all things. The island’s capital “Maó” is where it comes from. If you go there, try the gin, bitter lemon. A traditional local drink, it packs quite a punch.

Formentera is where you’ll find the best beaches in the Balearics and some of the finest in Spain. Its pristine white sands and crystal clear waters have been the setting for many advertising commercials. Most of the beaches are nudist and it’s a popular hippy hangout.

The Canary Islands
The Canaries are the only genuine winter sun destination in Europe – a major selling point used by both tour operators and real estate agents.

Average air temperatures stay warm and consistent all year long at between 18ºC and 24º C. Whereas, the mainland and Balearics can get very chilly during the winter months.

They’re a Mecca for watersports fans, windsurfing in particular, with average ocean temperatures of 22ºC in summer and 19º C in winter. You never even have to wear a wetsuit! although if you’re scuba diving, it’s probably a good idea.

The Canary Islands are renowned for their wonderfully diverse landscapes and beautiful natural scenery. Throughout the archipelago, you’ll find massive cliffs, imposing mountain peaks, lush green forests, volcanic craters, volcanoes, deserts and sand dunes. Tenerife is home to Mount Teide – Spain’s highest mountain peak.

Property Prices On The Islands
The two archipelagos are considerably different when it comes property, the Canaries being a lot cheaper.

If you’re looking for an apartment in Menorca, expect to pay at least €200,000 according to timesonline.co.uk (www.timesonline.co.uk). In Ibiza and Mallorca, minimum prices for apartments are around €300,000 and for a villa you’re talking at the very least €400,000.

The Canary Islands are a different story. For a basic apartment, average prices start at just €90,000 and you could get a small detached property for around €240,000.
Tenerife, one of the most popular islands for both investors and homebuyers, offers a great quality of life and some shrewd investment opportunities due to the affordable properties and guaranteed rental yields. Click here for the latest Tenerife New Developments.

05.30.07

Property Investment in Spain

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.