Spanish Property Investment Advice

Brought to you each week by our property expert, Iain Maitland.

Posted on 25 August 2006

Spain Still Top of the Buy-to-Let Investment Charts

According to the Office of National Statistics, Spain is still top of the BTL investment charts and has much to offer incoming investors who invest wisely in the right locations. Affordability is the key for many new investors. Interestingly, raw stats (i.e. they have not yet been finalised by the research body) show that the average property price in Spain is some 240,000 euros which is 10 per cent less than the average UK property price. If you are looking for affordability hotspots in Spain, check out Almeria where property prices are more than 20 per cent below the national average (even though tourist numbers are rocketing) and Valencia which is some 10 per cent below the national average (although the 2007 America’s Cup will change all that). These look hot to me!

Interesting to note the lead that has been taken by Viva Estates who have cut their resale commission to 2 per cent and also introduced a conveyancing service for vendors at 1 per cent. 10/10!It has been clear for a while now that commission rates needed to be corrected and it is good to see that Viva Estates has taken the lead. It will be interesting to see what the effects of this are. Positive for us, no doubt!

Watch out for the solar revolution! From October of this year, new building regulations mean that the owners of new buildings have to have solar panels fitted. The regulations apply to new buildings of more than 3,000 square metres but I expect to see these filter down in due course. From where I am sitting, Spain is going to become famous for its solar powers over the next three to five years. Everywhere you look you are going to see black solar panels - shops, hospitals, the lot. I am told that there are going to be five million fitted over the next five years. If you are buying a new home, talk to your developer – a typical 100 square metre home will need two, two square metre panels at a cost of about 2,000 euros. When you come to resell a few years down the line, I think your buyers will expect to see them fitted as standard by then.

All for now

Iain Maitland

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