In the past, people used to buy properties on the Spanish coast mainly to enjoy them during retirement or as a family holiday home. But the current reality is quite different, in recent years we have seen a large increase in purchases, for example on the Costa Blanca, oriented investment.
If we take a quick look at the statistics of the Spanish real estate market in recent years, we see a very marked trend where Spain is the number one destination in Europe for this type of intelligent purchases oriented to economic benefit.
One of the main problems encountered by the real estate investor when buying a property is the wide variety of investment opportunities that currently exist, for this reason we have decided to create this small guide to help you make good buying decisions.
The first decision in your investment
The first decision you will have to make is to be clear about what kind of investment you want to make, that is, do you want to buy that property to rent it for long stay, do you want to rent it as a holiday home for foreigners or maybe you want to rent it for local tourists.
As you know, Spain is still the most popular holiday destination for our European neighbors, and it is the ideal destination for anyone who wants to enjoy a few days of sunshine on the Costa Blanca, and I’m not just talking about high season but our European neighbors want to enjoy these days of sunshine throughout the year as in the Costa Blanca we have an average of 320 days of sunshine a year.
Buying a property in Santa Pola to rent it out
If your goal is to buy a property in Santa Pola to rent it out, I recommend that you choose the location of the property very precisely. Properties that benefit from being close to tourist priorities, such as beaches, stores and restaurants, can usually get a higher rental yield. Properties in Santa Pola and in general on the Costa Blanca offer fantastic rental investment opportunities.
Once you are clear about your investment objective and the location of the property to buy, it is very important that you decide what type of property you are going to buy.
It goes without saying that larger, high quality properties with private pools, communal areas and spacious double bedrooms can be rented at a higher price.
Approximate summer rental income
Here are some examples of the income you can expect from renting a property in Santa Pola for a week in the summer months:
- New apartments with 2 bedrooms and 2 bathrooms – approximately 600 euros.
- 3 bedroom 2 bathroom apartments – approximately 800 euros
- 3 bedroom villas with pool – approximately 1500 euros
As you can see from these examples, simply by renting the property in high season, you will be able to pay the annual mortgage on the property and even all utility costs such as electricity and running water.
Buying a home for resale
Another option to generate quick profits with the investment in the purchase of a new house is to resell it a few months after its purchase.
There are many acquaintances and clients that we have that after several months of having made the purchase of a newly built house, this house has had a great acceptance in the market so that these properties have been revalued quickly and their owners have been able to sell them at 10% or 15% more than the initial purchase price.
That is to say, if the property cost 200.000€, in four months you could obtain a profit of 20.000€, this has been the reality of the Spanish real estate market year after year.
If there are some recommendations that we can give you to invest in a property that can be revalued quickly in the real estate market, the following are the most important ones:
- Always look to invest in homes that have a very good location, either in tourist areas or in less touristy areas but very well communicated.
- Always bet on homes built with high quality materials that avoid deterioration quickly.
- Finally we recommend that you take into account the accessibility to housing as it is very possible that potential buyers are over 60 years interested in retiring and retiring in Santa Pola.
We hope this article has been of interest to you, if you have any questions or want to know all the details of our homes, you can download the dossier from here.