Why Right Now Is the Best Moment To Invest in Property in Spain

Currently interest rates in banks are low, which makes it almost not worth it anymore to let you money rest on your bank or savings account. Because of this, property is (for the average person) the only way to be able to borrow money and go against the rising inflation from the last time, that just hit 5,5% in Spain.

Low Mortgage Interest Rates in Spain

On the other hand, mortgage interest rates are below 2%, which partly explains the boom in Spanish home sales. Banks will lend you up to 70% of the price (or sometimes even more) of the house you are buying, with a long term-finance up to 30 years, and stuck interest rates below 2% at the moment if you look around.

Property in Spain Has The Possibility To Make You Money

Nobody will lend you money on these terms to go around and shop for gold for example. Besides this, property will also ensure that you can get money out of your investment, while you are paying it off. Everybody needs a home and when you are able to rent your house out, you can use that money to pay your mortgage off.

This is especially the case in Spain, where rentals in the holiday season pay the same per week as per month in winter time. If you are not buying a property to live in yourself all year round, but as an actual investment, earnings can go up a lot if you pick a strategically good location. Besides this, in the Costa Blanca alone the ROI of a home investment is on average about 5% a year. Now that's a great bet to make.

Inflation Rates Are Higher Than Ever

In November 2021, Spanish inflation hit 5,5% compared to 5,1% in the UK, 6% in Germany and 4,9% as Eurozone average, showed by data from Eurostat. This inflation has mainly been driven by a rise in energy prices of about 27%.

Economists and central bankers, argue that inflation is transitory, but by the energy policy now controlled by the government because of the matter around climate change, there probably won’t be a return anytime soon.

Meanwhile interest rates are currently close to all-time low, and you will still able to get mortgages with very low interest rates. All of this partly explains the boom in Spanish home sales, and if the inflation keeps rising, this argument for investing in a property to secure your money will stay in place.

Need Help With Buying a Property in Javea?

If you are currently looking to buy a property in Javea and want to take advantage of the current situation, but don't know where to start. Don't hesitate to contact us! We have a big portfolio with the latest listings on the market and work together with our trusted partners to be able to offer you the property of your dreams. Call us at +34 96 579 40 59, send us an email at info@villalux.com or simply respond to any of the properties you like on our website, and we will get back to you as soon as possible.

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