How to Safely Invest in Property: Costa del Sol and Malaga

Now is an ideal time to invest in property on the Costa del Sol and Malaga.

invest in property on the Costa del Sol
Lovely finca in Alhaurin el Grande

As the pound is strong against the euro and there are signs of a positive movement in the Spanish property market, now is a good time to think about investing here.

Prices plummeted by 40% or more when the bottom dropped out of the Spanish property market in 2008. It has taken a long time, but many experts believe the market has bottomed out with some areas actually showing a rise in prices (particularly in parts of the Costa del Sol!).

This means that there are bargains to be had, especially in popular areas such as the Costa del Sol and Malaga. But you still need to take care before you invest.

The signs are looking good with top hedge fund heavyweights George Soros and John Paulson taking a €92 million stake in Hispania Activos Inmobiliarios, a Spanish real estate investment trust.

Bill Gates and George Soros have also bought stakes in Spanish construction firm FCC following prospects of a turnaround in the Spanish economy with the knock-on effects on real estate and construction.

So big money is coming into the Spanish property market which is a very good sign, but there are other factors to consider to make sure that you invest safely in property in Spain.

You could join Messrs Soros and Paulson by putting your money in a real estate investment trust which invests in various properties, commercial and residential, thus spreading the risk.

invest in property on the Costa del Sol
Great value brand new apartments near Estepona

If you like to be hands on with your investment, you can buy a property to renovate and then resell. You will need to look pretty hard for an apartment complex or house on the Costa del Sol which looks tired and outdated. However, it is a lot easier to find properties in need of renovation in Malaga Capital.

The Costa del Sol is one of the top tourist destinations in Europe and so investing in holiday or rental lets should pay dividends, although you will need to make sure your properties are in the best locations for holidaymakers.

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The Costa del Sol is enjoying bumper numbers of tourists with more than 10 million foreign visitors in 2014. So investing wisely in a popular resort should mean your rental property is booked for most weeks of the year. The amount you can charge will also vary depending on the resort. It is advisable to seek local expert advice on these figures.

Do not forget that you will have to pay tax on your rental so you will need to work out whether the income is sustainable, especially if you have taken out a mortgage.

It is always advisable to hire a lawyer to check the property for you and to make sure the contracts and deeds are all in place.

Once you have decided to buy, you will find that using a currency exchange expert to convert the money will leave you better off than the bank rates. Contact Us for recommended currency experts.

As always, thorough research on the property market and on the location will pay off when you look to invest safely in property on the Costa del Sol and Malaga.

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