Having a place one can call home is considered a great satisfaction for many people. It feels even better when one acquires a ‘home owner’ title. Whether you want to buy a house for self-occupancy or rent out, you’re heading in the right direction. However, the property ownership journey is not always bliss. You might experience various hurdles along the way, including finance deficit, legal challenges and dishonest sellers/dealers. So, this brings us to the key question; “is buying a house in Spain a good investment?” 

We understand that a house is a valuable asset. It is an expensive affair for most people. You don’t want to spend thousands of dollars on a white elephant project. Every coin should count. If you are not Spanish or you don’t live in Spain, you might be wondering if the country offers an investment-friendly environment to foreign investors. 

Perhaps you’ve heard or read bad stories about buying properties in Spain. However, on the other hand, it’s worth noting that the real estate property sector in the country has been flourishing tremendously, especially in the recent decades, until the onset of the COVID 19 pandemic. Fortunately, according to a recent report, the sector is recovering gradually. Let us now give you a few reasons for buying a house in the country.

Why Purchase a House in Spain? 

1.Recovering Economy 

The coronavirus crisis has seen world economies, large and small, shrink significantly. The Spanish property market took a downward trajectory too. In 2020, Instituto Nacional de Estadistica revealed that the home sales in the country fell by 21.2% during the first ten months of the year, as compared to a similar period the previous year. This means that there were more properties for sale during the period, as compared to the first ten months of 2019 (before COVID). Additionally, many homes in the country have been left empty following the death of their occupants as a result of coronavirus complications.

However, things are getting better with time; house prices and demand in the country have been rising gradually, although not as rapidly as what was experienced just before the COVID era onset. A recent report by Instituto Nacional de Estadistica  shows that house prices in the country increased by 1.15% 

In the third quarter of the year 2020. In 2021, with the country’s economy projected to reach 4.4%, property investment volumes are projected to increase, as compared to last year.

As property owners look for most solvent customers to fix their liquidity issues, this is a superb time to buy a house at a very pocket-friendly price in Spain. Also, considering the economic recovery, property rental prices are expected to improve. This is a promising expectation for a property owner who wants to buy a house to rent out. 

2.Easy Legal Residency Acquisition

If you aspire to invest in a foreign, economic-giant country with favourable residency acquisition laws, then Spain should be at the top of your options list. If you are a non-European Union national, you’ll only wait for a few months to gain family residency as long as your real estate investment in the country is worth at least €500,000. This opportunity is courtesy of the Spain Golden Visa Scheme. Five years will be enough for you to gain permanent residency in the country if you maintain the status quo. Better still, it is worth noting that you don’t have to live in the country for you to maintain or renew your residency visa permit. 

3.Variety of Geographical Options 

Spain, just like many other countries, consists of regions that differ significantly in terms of geographical features. From sandy and breezy beaches and quiet inland villages to inland cities, an investor has a variety of options to explore as far as where to buy a real estate property in Spain is concerned. Outstandingly, the country boasts some of the most beautiful beaches along its sunny coastline. You’ll be delighted to discover that the beach is just fairly close, no matter where you choose to live in the country. For instance, if you choose to live in Madrid, which is in the country’s central region, reaching the Spanish coast is simply a three-hour car drive affair. 

Considering these varied locations, you might find yourself at crossroads when trying to identify the ideal location of the house you intend to buy. Well, in such a case, there are various factors you need to consider. First, identify the purpose of the property. Then, consider the ideal external environment (which social amenities would you like to see around the property? What kind of properties would you like to see in the neighbourhood?). Last but not least, assess your budget for the investment and explore residential properties with prices that fall within the budget.  

4.Friendly People 

There are countries where foreigners’ worst nightmare is owning real estate property because of the hostility of the natives. In some instances, the intolerance escalates to property destructions that see foreign investors’ millions or billions of dollars go to the drain. 

However, when it comes to Spain, things are totally different. Spanish people are not only very friendly but also extremely hospitable. As a result, expatriates and foreign investors find it pretty easy to integrate into the Spanish lifestyle. This is the reason why the country has lots of ex-pats and foreign investors from the UK and other countries.  

In as much as buying a house in Spain can be a good investment, it’s crucial to remember that:

• Investing in real estate is not a get-rich-quick scheme: If you want to generate rental income from your property, be patient enough to wait for years before the investment breaks even.
• A professional helping hand is paramount: The property purchase process and property management can be overwhelming and daunting when you decide to do everything single-handedly. As such, you’ll need relevant professionals such as a real estate agent and an attorney to make your work easier and improve on legal compliance. With Mortimers International  by your side, you’ll be able to find your dream house in Spain without lifting a finger.
• Failure to plan is planning to fail: Identify the purpose of the property beforehand and remain consistent. For instance, if you intend to buy a holiday home for self-stay, ensure that you choose a location that you’ll be happy to live in for years or over the desired period. Be strategic from the very word go. 

Buying a house in Spain is a good investment, especially when all the necessary factors are taken into account. Get professional guidance from our real estate experts will ensure that you get everything right in every step of the property acquisition process.