Buying Your Spanish Property - On the Coast or Inland
Do you go to the coast along with many others or do you look
further inland for your dream home - what are the benefits to
you for each of these locations.
Rental Income Firstly you should have already decided what you
want from your move and potential purchase. Are you going to be
living here permanently or will you be using it as a holiday
home, do you therefore require a rental income to cover all or
part of the costs? If so then you will need to look more towards
the coastal regions and the tourist areas, although inland is
becoming popular with a different breed of tourist - those
wanting to get away from it all.
There is not such a critical mass of people wanting this kind of
holiday so if you need to rely on an income then you should look
towards the Costa's. You could secure a long term rental for
your inland property to cover you your costs, but you need to be
very careful ensure contracts are well worded. Failure to do so
can be costly.
Capital Gain In recent years prices on the coast have soared.
Recently though, prices are slowing - whereas before 20-50%
rises were common - it is now a more reasonable 7% rise per
annum. In part this is because less people are buying - the UK
has seen a dramatic downturn in the property market, and this
has had a knock on effect on the Spanish Market. Previously
people were selling to move out here. Now they cannot sell their
house in the UK so they have less budget and on the coast their
budgets will get them a 2 bed apartment 500M from the beach.
Move inland and you have a wealth of villas in excellent
condition with pools and for the same sort of price. So people
are more discerning in their choices.
Renovation of property 4 years ago it you could buy a house for
reform that would return much more than the value of the
reforms. For example a house worth €100,000 complete and needing
€30,000 spending to get you there would have sold for €30,000 -
making it a valuable investment. (You only have to look at Oliva
to see this in action). However the same property now would cost
you €80,000 - making reform not so attractive unless you really
like the house. However Inland there are still houses requiring
reforms making fabulous homes and return a much higher capital
gain a worthwhile investment
On the Coast such properties do exist but it is like looking for
a needle in a haystack. When you find them they are not legal,
no papers, urbanisation just round the corner or a wealth of
other things. So buyer beware.
Building Your Own Home An option many have considered and
commenced. Why? Well you get exactly the home you want - and at
a great saving - 20-30%. However it isn't as straightforward as
it seems. No longer are town halls turning a blind eye to
illegal builds More and more the town halls are issuing
demolition orders. Which makes plots of land with permission
very valuable (read expensive). And by the coast read very
expensive. Go to Moraira and 800m cost you €250,000. In Oliva
the same plot would be €140,000. Inland in Ontinyent this price
would be €60-80,000 but you would get more land for this money.
Infrastructure No doubt many people will be put off inland
because of poor infrastructure and so head for the coasts where
communication between towns and airports is good.. But recent
investment and road openings - such as the new A7 has meant a
great reduction in journey times. Many people quote 25 minutes
to the beach from Ontinyent - the reality is that an average
driver on an average day will take 40-45 minutes - but still
half the time it used to be. But get to the airports of Valencia
and Alicante and you are there in 45 minutes - now where can you
do that - probably Moraira South and maybe Cullera North - but
in between forget it.
In Summary - Costal Or Rural It depends on what you want. The
coast is great and I for one love it, but have often been
tempted to up sticks and go inland for a bigger house. Inland
has its charm it is more real Spain. But if you are looking for
an excellent way of life with great communication, excellent
facilities, and great community - not to say the villa you
promised yourself you would buy - then really there is only one
option - Go Rural.
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