Fincas and Country property - Málaga Property

News - January 2007

Return of the Rental

As talk of the Town Hall corruption continues, one sector of the Spanish property market in Marbella continues to flourish – the Buy to Let market.

Many cash rich individuals have seen the benefits of Buy to Let in the UK and are now transferring their experience and understanding to Spain.

Picking up a bargain and being able to create an annual rental stream is, for many, an ideal way of investing for the future. Whilst many people have been caught out by the poor performance of Pension schemes, the returns from property can be surprisingly good if you carry out the right research.

Christine Szekely says that there are more and more people buying, across a wide range of price sectors, with a view to letting the property (either permanently or for shorter holiday periods).
Spanish banks are also starting to recognise this market and are offering new products for those people needing finance. Not that the UK lenders are taking this lying down – Halifax Hispania are launching new products to compete with Spanish lenders specifically targeting the Buy to Let market.

There is, as always, a word of caution – many buyers have bought properties within larger developments and of course, this creates its own level of competition. So always ensure that you know what competition you will be facing and make sure that you can be competitive when pricing so as to attract the right level of interest.