A recent survey has revealed that house prices in Spain have jumped by 300% in the last 16 years.
The Spanish Foundation of Confederated Savings Banks undertook a survey which showed that 5 years ago the cost of buying a modest home was just over 2.5 times the average wage. Last year this figure had increased to over 5 times the annual wage.
Our View
We have noticed that many people are now purchasing homes in Spain as either holiday homes or rental property. However, the biggest boom from our point of view is the number of people actually moving away from the UK to live in Spain.
The cost of living and obvious benefits like the weather are luring thousands of Brits to the sun, so much so that as many as 1 million British will live in Spain within the next 10 years.
We have one word of warning if you live in the UK and intend to purchase a Spanish property for rental purposes. Interest rates!
If you intend to make money from rental income, make sure that your target market will be able to afford your property. If interest rates continue to rise and you are targeting families on holiday, you might find their budgets narrowing if their own mortgage payments rise.
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