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For over 50 years property has proved to be the most consistent vehicle for investment, with values doubling every 8 years. Over the past 18 months the market in the UK has enjoyed exceptional capital growth of between 20-30% per annum. Some regions have experienced even higher growth rates and other regions have slowed down notably certain areas of London. Property has always been a great long-term investment, regardless of short-term market fluctuations. Consider these facts….. Since 1956, the compounded average annual increase in house prices has been 8.5% According to nation-wide figures, the worst fall in the property market was 11% back in 1990. In the 32 years since the Department of records have kept statistics, prices have risen in 28 years and fallen in only 4. According to the office of National statistics, rents have risen on average by 13% per annum since 1962. Back to top Over the next ten years the rental market will become more profitable than ever before. It will continue to grow due to…………… Escalating house prices pushing buyers out of the market. Increasing numbers of students and single people looking to rent. Loss of social stigma about renting. Increasing spending of disposable income as opposed to people deciding to buy their own property. An increasingly transient society with an increasing number of "footloose" families seeking mobility and flexibility Back to top The recent Housing Figures 2012 Study says that the average house price is set to grow from £101,161 to £300,643 by 2020. If you buy an average house or apartment today, you can expect its value to rise by 197% over the next 18 years. There is already a shortage of 4 million homes in the UK and the population is expected to rise by 10% over the next 25 years. It is impossible for house-builders to keep up with the demand. The Centre For Economic Research predicts that rental demand will nearly double inside the next ten years. Back to top We agree with the general opinion that property cannot continue to rise as it has over the past 18 months, with an average increase of 23% per annum across the country. However, if we consider the facts over the past 15 years, we can see that prices have risen consistently by between 8-10% each year. Only twice have we seen any slump in the market and only for a short period before returning to even higher growth. When you consider the government announcing that the huge shortage of housing throughout the country will not be resolved for at least 10 years, it tells us that the demand for property will ensure a long term and successful investment opportunity. Back to top The latest forecast from FEDUR ( federacion Andaluza de Urbanizadores) is that an estimated 800,000 European families will buy a home on the Costa del Sol over the next five years. Other analysts are predicting as many as two million. A recent study by the AMS group shows that the number of residential tourism homes in Spain has doubled in recent years to more than three million, 1.1 million of them owned by foreigners. 70% of Spain's residential tourism homes are located in Andalucia and Valencia, principally on the Costa del Sol. In 2001 investors spent in excess of 300 million Euros on property purchases. Prices have been rising by 20% year on year, with comparable rental yields achieving between 10 and 11% whilst under the structures of the EU membership, the process and safeguards for an investor have never been more secure. Developers have clearly judged the future market demand: with inexpensive European travel, easy access from an increasing number of European airports and high quality construction, demand continues to outstrip supply. European and Spanish banks and financial institutions, offering historically low interest rates, are fuelling a major trend from property rental to ownership. As rental can be in excess of twice the cost of the mortgage, more investors are buying a second and third property to increase their revenue. Strict property guidelines, competition amongst developers and an impressive upgrade of the road systems are all contributing to make the Costa del Sol a highly desirable area in which to invest or reside on a permanent basis. Increasing development of professional and international business services, excellent medical services, and renowned international schools is creating a unique infrastructure. National and local government have successfully made the Costa del Sol one of the safest and cleanest regions in Europe. The traditional belief that property is always the best long term investment is proving once again to be the best policy and the Costa del Sol is an excellent place to live, spend holidays or invest for rental income and capital growth. Back to top We have numerous contacts in the financial and building industry that supply us with a variety of off-plan, new-build and existing property, plus second-hand property brought directly into the market place. Back to top To keep the system efficient, we use our own panel of solicitors and lenders, and can arrange everything on the clients' behalf keeping the process "hassle free, simple, professional & quick". Back to top Yes. The client is the registered owner and can choose to sell at any time. Back to top The client. We ensure the rental income from the property covers the loan. We vet all tenants taking three references including bank, personal & employee. If a tenant defaults we replace them with another tenant as quickly as possible. However we must empathize the client is ultimately responsible for tenancy. In some situations rental contracts are paid up front or they are agreed long term over 3, 5 or even 10 years! These longer tem tenancies tend to be agreed with Local councils. Back to top In the UK, if a deal is agreed at a discounted price and the client chooses at any time to draw down equity, this can be achieved without any resulting taxation liability. If a UK property is sold at a profit of more than £7.9K, capital gains will come into effect. A couple are entitled to a joint allowance of £15.8k. Any gain above £15.8K will be taxable at the individual's marginal rate of tax. In Spain, should a client buy off plan and sell the contract before completion, there are no taxes applicable (normally 7% IVA). Otherwise if the property is sold at a profit, a 7% IVA tax would come into effect. |
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