Investors Aren T The Only Ones Who Buy Homes In This Country

Category: Finance, Real Estate.

Though Spain was once something of a bargain hunters paradise, today s Spanish homes are being snatched up by the highest bidder.

Yesterday s investors are fast becoming today s millionaires. As a result, housing in many parts of Spain has gone from a buyer s market to a seller s dream. There is no shortage of real estate investors in the Spanish housing market. Today s investors look for houses that offer more than just a place to hang one s hat. The focus has merely changed from grabbing cheap homes to seeking quality investment opportunities. They consistently sink money into properties that come with the advantage of proximity: access to shopping, recreation, schools, beaches, and other desirable amenities.

Much of this focus on quality has come about through Spain s efforts to cater to the tourism sector. Rather than flipping cheap homes in average areas, they focus their efforts on upgrading higher- end homes that have more to offer by way of location. With new hotels and resorts being built at lightning speed, surrounding areas reap the benefits of rising property values. Another factor that contributes to the housing market increase is the moratorium on building in several areas of the country. Thanks in part to events like the Mallorca Classic and the America s Cup, tourism likely will remain a strong factor in the value of real estate. The efforts to protect the very natural resources that draw tourists to Spain means the country is more land- locked than ever before. Investors aren t the only ones who buy homes in this country.

With fewer places to build, existing properties values are rising faster than in previous years. Holiday makers still purchase vacation homes at a steady rate. Vacation homes on the coast and the islands remain a popular commodity with those who look for long- term gain over short- term investment. Wealthy Brits continue to invest in Spain, though their reasons for buying and the qualities they seek have changed. Most of these vacation and second homes are purchased by UK investors. This doesn t mean there aren t any more economical properties left. In fact, business is so steady that many agents cater specifically to buyers from the UK.

For those who are able to venture inland and away from the cities and major resort areas, the odd bargain may still be found. Those who wish to sell their homes and invest their gains into purchasing a larger residence have to leave urban areas for smaller, less populated towns. Prospects for native Spaniards who want to upgrade, are few and, however far between. Real estate experts predict that the housing market in Spain will get tighter. These investors typically hold onto their properties for many years. Buyers seeking vacation homes will continue to make up a large percentage of investors, especially in cities and resort areas.

So, while there is some opportunity to make money, investors( vacation home buyers or otherwise) should not bank on making a fast flip. They can, likely count on, however seeing lasting value with their purchases, particularly properties with quality perks.