Buying Property in Spain
A study by SAGA and Principal International shows that half of their survey group, aged over 50 will consider buying abroad with Spain as the favourite location.
Spain’s proximity to the UK, its climate and its slow pace of life are the determining factors.
However, realtors do warn consumers to avoid combining a holiday with property shopping. George and Eleanor Whillock set up Keyhole Property Search in Mallorca.
Whillock said: “You have an absolutely beautiful island with a vibrant property scene, but it is very competitive. It’s easy to get it wrong. People make the mistake of combining a holiday with buying a house. The combination of sun and wine can lead to the wrong decision, [especially] with some agents who can be a bit pushy. That was our experience when we were buying, so we got involved in helping people into the marketplace.”
However, moving to Spain is not cheap. Apartments cost up to £1m and villas can cost as much as £13.4m in Mallorca.
But, Spain does have investment potential. “People are looking at high inflation on property prices,” Whillock explains. “As an average across the island in 2005, prices rose by about 15 per cent. We bought our apartment in June 2005 and paid €430,000 [£288,000] for it. Today it’s worth €650,000 [£435,000].”
Recent reports reveal that many UK consumers are purchasing homes around the world for their retirement partially for the investment, and partially to provide a variety of options.
The number one draw for the content is the lower interest rates. Homeowner loans are cheaper in Spain, but like all things, consumers are warned to get a reputable agent and do not rush into anything.