“All the benefits to owning a buy-to-let property are being taken away,” said Ed Mead, founder of property services company, Viewber. Profits have been hit whilst the cost of investment has increased.

Add this to Brexit uncertainty and the announcement of Labour’s plan to seize “empty private homes” and even the most level-headed property investor may predict an upcoming change in the market. And not one to their advantage…

With all this uncertainty & aggressive legislation, investing in Spanish property looks increasingly more attractive, there’s never been a better time to make the move.

Property is once again the most popular investment route thanks to the recent growth of the Spanish economy, the increase in rental prices, the progressive revaluation of properties and the boom in Spanish tourism.

So if you’re going to invest in the Spanish real estate sector, it helps to have prior knowledge of the market and advice from experts in the sector. Medland are here to assist throughout the process and advise on the points you need to consider in order to get it right and obtain greater profits:

Weigh up the pros and cons:
should you buy to rent or buy to sell? Acquiring a property to rent has the benefit of giving you a fixed monthly income and a property in progressive revaluation. There is also the option of a holiday rental, the advantages of which are a higher income than a traditional rental, guaranteed payment in advance and greater availability of the property for your own enjoyment. On the other hand, buying a property to sell on later carries a lower financial risk if it is sold at a higher price than you bought it for, and can give you a nice, hefty lump sum. With new build property prices rising on average 5% per annum, canny investors are making money from the increasing value during the construction period.

Go for tourist areas:
if you prefer to buy with the intention of selling, it is best to opt for the Spanish coasts such as the Costa Blanca & Costa Calida, where the market is more dynamic. It is also advisable to buy in upcoming development areas that are seeing more revaluation of housing prices & increases in the value of New Build property during the construction period. The location is also important when investing to rent, with the more tourist friendly areas being excellent options worth considering for both types of investment. The reason lies in the growing demand for second homes in beach areas and the constant need for holiday rental property.

Properties in good condition:
in the case of rentals, it is important to keep in mind that your property must be in good condition to attract tenants. Obviously with New Build investments the condition of your property is initially new & first rate and often finalised to your specifications. Either a private or communal pool is highly advisable for attracting holiday renters.

How to calculate the profitability:
in order to estimate the initial investment, you have to consider more than just the purchase price. You also have to add the taxes, the expenses of the operation and paying out to do up the house (electrical appliances, furniture, etc.). Only once all you take all these costs into account can you calculate the profitability of your potential real estate investment in Spain.

Of course at Medland we have advisors on hand to answer all of your questions & a preferred team of professionals to deal with all the legalities. Investors would be well advised to take a look at the potential of the blooming Spanish Property market and see just what opportunity awaits.