Buying a Property in Spain

TepidWater

I'd welcome some advice please.

We're currently looking into buying a property in Southern Spain. We intend to book an inspecton tour with a company called Ocean Estates tomorrow.

We're particularly interested in a few properties between Gibraltar and Estepona. We're principally looking at two bed flats. It is our intention to use the property for four weeks per annum for family holidays then rent it out for as much of the remaining period as possible. I'm hearing wildly differing reports about the validity of this purchase as either a capital growth or rental project.

The average cost of the properties we are considering is £160,000. We understand that we'll need to make a 20% (£32k) deposit followed by a 80% (£128k) on completion. I've also been informed that we need to factor in a 10% (£16k) amount to cover fees on completion. £144k of the cost of the entire project will be secured through a Spanish mortgage.

Four major questions:

1. Has anyone had experience of one of these inspection trips?
2. Is a property purchase in Spain recommended at present?
3. Do my purchase costs make sense?
4. WHat is the rental / capital growth potential?

seven-day-weekend

http://www.britishexpat.com/expatforum/spain/index.php?sid=cf88ff1736571136fb06298287a6d22e

This may be a better place to post uyour query.

AFAIK Mediterranean coastal Spain is no longer a good investment. Too much supply, not enough demand.

But I don't live on the coast, so don't know first hand.

Try the expat forum link above.

TepidWater

Many thanks for this. The link you're provided is excellent. I've decided not to go on the inspection trip (for the moment anyway).

I'm keeping my options open although I'm still very interested in buying a property in Spain. Not totally convinced that Spain offers enough investment potential at the moment however.