Waiting for the results of Britain’s EU Referendum before deciding whether to buy a Las Palmas apartment? Or worried that buying abroad might be financially risky?
Here’s why you don’t need to worry, and why owning in the city is an investment rather than a risk.
Your property rights are protected
Property rights in Spain are well protected for all buyers whether they are EU citizens or not. Norwegian and Swiss citizens have been buying apartments in Las Palmas for years with no problems at all.
And Spain, with hundreds of thousands of foreign owners and a recovering market, won’t do anything to worry foreign owners and future buyers.
Prices are set to rise by 40%
A recent study found that property prices across Spain are set to rise by 40% over the next nine years. And that’s an average figure that includes areas where prices are still depressed.
The rise is caused by a decline in the amount of empty new-build property, an improving Spanish economy thanks to a tourist boom, and a big improvement in the availability of local mortgages; Spanish people who bought before the crisis are now looking to sell up and buy a bigger home.
The same study, by Navarra University’s Center For International Finance, noted that demand is now back to pre-crisis levels in the Canary Islands because they never had a big excess of new-build property.
What this means is that you can buy in Las Palmas without worrying about losing money due to exchange rate fluctuations or the weak pound. Currency fluctuations are quickly wiped out by rises in value.
And that’s before you even consider rental income…
Earn euros so you don’t have to worry about exchange rates
Buy the right Las Palmas property and you own a Euro-making machine.
- A 2-bed apartment with outside space close to the beach rents out for 70 euros per night.
- A studio with sea view gets 50 euros per night.
- The right frontline apartment with a terrace rents for 150 euros per night.
Ok, so you have to pay your communidad bills, water, electricity, and internet bills. And the (low) annual property tax. And income tax on your rental income.
Even after all your costs, you still earn enough to cover the mortgage and have plenty left over to fund your next Las Palmas holiday (or your next investment flat).
The rental market in Las Palmas is booming as more and more people realise that it’s a great place to own a holiday property. And renting out your city apartment to tourists is now completely legal.
Own a Las Palmas property and want to rent it out to tourists? Or want to buy an apartment that earns you money every month? Contact me and let’s talk about your options.
Currency exchange tip
Rather than waiting until the last minute and transferring your entire budget in one go, transfer your money in batches over a period of time. This eliminates the risk of getting caught out by a bad rate. And use a currency broker so that you pay minimal fees and get the best available rate every time to transfer money.