Buy a house on the Costa del Sol now, sell it at a profit later
Buy a house on the Costa del Sol now and sell it with 40% profit later. It sounds too good to be true, but it is exactly what happened in the past. Buying a house on the Costa del Sol was an excellent investment, especially for foreigners who then fought for a place under the sun. There is a genuine chance those times will return. House prices have on average risen again by 6.3% in the first quarter of 2016…
Buy a house on the Costa del Sol now and sell it at a profit later
José Luis Suárez, professor of financial management at the IESE business school, recently told the audience of a symposium on the Spanish housing market that the current revival of Spanish property prices could last until at least 2025. Not only that, prices could rise at least as fast as before the crash of 2008. His calculations show that a house bought now could be worth 40% more in nine years’ time. It’s still a forecast, but the fact is that property prices in Spain rose by an average of 6.3% in the first quarter of 2016. That is the highest increase in eight years!
Even estate agents are searching for houses
Especially in popular areas such as Marbella on the Costa del Sol the housing market has shown a stable recovery for two years. This has two effects. Firstly banks heave a sigh of relief and open their doors more often to people wanting a mortgage. In addition, more and more people are aware that the property market is recovering and that buying a house on the Costa del Sol now is a smart investment again. And there is another important development: the number of available houses decreases. In 2006 no less than 800,000 new houses were built. In 2015 only 50,000… Even estate agents are now looking for properties they can sell – they have enough buyers!
More demand. Less supply. Two developments that further fuel the prices of homes. Nobody can predict the future, but it is certain that more and more houses are being sold – and that the prices of properties are rising. Buy a house on the Costa del Sol now, sell it at a profit later? It all of a sudden doesn’t sound too strange anymore.