Investment Property in Estepona

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Buying Investment Property in Estepona?

Looking to buy investment property in Estepona? It’s a sound choice, yet one that must be executed correctly. This article tells you about buying investment property in Estepona, the types of deals available and the likely returns. Remember, buying property in Estepona has, on average, yielded in excess of 8% returns per year, and significant capital asset growth.

Buying investment property in Estepona with cash outright is also a sure fire hedge against any rise in interest rates. Some investors look to buy properties in need of renovation or a change of purpose. They then renovate those properties and rent them out on a long term or short terms basis. Many investment properties in Estepona are purchased by non Spanish Nationals and are either used as a holiday homes or straightforward by and hold investments in Estepona.

Once these properties have been renovated and rented then investors in Estepona may refinance the property by taking a mortgage over the property at a higher value, using the income to pay the mortgage and reinvesting the profit from the deal into more property in Estepona or elsewhere.

How easy is it to buy investment property in Estepona?

Buying an investment property in Estepona might be more complex, but Spain is a very welcoming country for foreign buyers as foreign ownership of properties in Estepona has really helped lift and stabilize the local economy.

The procedures for buying a property in Spain as an expat are relatively straightforward. Before buying, you’ll require a financial number, which can be obtained by visiting a police station with your passport. This is typically processed on the same day for Spanish or EU citizens, but may take a little longer for other nationalities.

Financing an investment property in Estepona can be done by cash or mortgage charge. It is often easier for expats to finance the purchase from their home country. Pre 2008 many Spanish banks in Estepona would lend to international investors although they have been reluctant to do again, so even now.

What is the average price of investment property in Estepona?

Average property costs per square meter in Estepona are €1,722 per square meter, representing a solid, year on year growth trajectory of 8%.

Map of Estepona

Estepona (Spanish pronunciation: [esteˈpona]) is a town and municipality in the comarca of the Costa del Sol, southern Spain. It is located in the province of Málaga, part of the autonomous community of Andalusia. Its district covers an area of 137 square kilometers in a fertile valley crossed by small streams and a mountainous areas dominated by the Sierra Bermeja, which reaches an elevation of 1,449 m at the peak of Los Reales.

Estepona is renowned for its beaches, which stretch along some 21 km of coastline. It is a popular resort and holiday destination.

Due to its natural environment, surrounded by the sea and the mountains, Estepona has a micro-climate with over 325 days of sunshine per year.

Estepona is a popular year-round holiday destination; it has two EC Blue Flag beaches, a modern sports marina with many tapas bars and restaurants. The white-walled town centre has many shops and picturesque squares. In the early 1990s, the Walt Disney Company chose Estepona as the original site for its Eurodisney project, but Paris, France was later awarded the installation.

Making Money on Investment Property in Estepona

The best way to make money on Estepona Property is via an expert international investment fund.

Your Financial Advisor or Accountant won’t bring you the opportunities because of course they won’t receive their greasy commissions.

Investment funds are not even allowed to advertise so you’ll never hear of them unless a friend recommends them.

You will need at least some experience with previous investments to be eligible and of course these funds are extremely picky about the investors they accept. They can afford to be. They don’t need your money, but they can put your money to work for you like never before.

Costs of buying a property in Estepona

Fees for buying a property in Estepona vary from area-to-area, and many are negotiable – for example, there are no fixed fees for lawyers or estate agents. Buyers must pay the majority of the costs, which are generally as follows:

  • Property transfer tax in Estepona: 6–10% (existing properties) / VAT (or IVA) at 10% (new properties in Estepona)
  • Notary costs, title deed tax, and land registration fee in Estepona: 1–2.5%
  • Legal fees for buying investment property in Estepona: 1–2% (including VAT)

The seller usually pays the estate agent fees in Spain. Estate agents usually charge their fees as a percentage, typically around 3% of the final sale price.

Who is the Best Real Estate Agent in Spain?

PRestates is a multi-award winning Luxury Real Estate broker in Estepona, with a 18 year track record the agency has been directly or indirectly responsible for the largest volume of transactions in Estepona in the past two decades.

Types of investment property in Estepona

It is important to understand the main types of Investment Property in Estepona

  • Undeveloped land in Estepona
  • Commercial property in Estepona
  • Residential real estate property in Estepona
  • Operating property investment in Estepona
  • Distressed property investment in Estepona
  • Investing in a World Class fund with activities in Spain, and in Estepona

Types of property investment deals in Estepona

The main types of property deals in Estepona are:

  • Buy to let in Estepona
  • Buy to hold
  • Serviced Accommodation in Estepona
  • Vacation Rentals in Estepona
  • Commercial Property in Estepona

The Most Successful Property Investment Fund 2020 : Click Image to Download Prospectus

Buy to hold in Estepona

Long-term rental property in Estepona is widely considered one of the best ways to diversify your property portfolio. So buying and owning property means much more than just investing in a single property, it can bring you a variety of benefits, such as access to a variety of investment opportunities and the benefits of long-term ownership.

While some investors in Estepona may be confused or intimidated when they start, buying and owning property can be one of the best investments you can make if you do your due diligence before you start.

The rental income from investment property in Estepona generates short-term income that can be used to pay off a mortgage or to invest money. The strategy of buying and holding property is one of the most common investment options.

The value of the Estepona property will increase over time and the investor will benefit if he is willing to sell it later. The investor benefits from being bought in the expectation that the value of the property will rise over time.

Investors considering a Estepona property purchase and holding strategy should do their best to calculate the potential income from renting out the property. The bottom line is that monthly income should exceed the cost of rent in the first year of ownership and annual rental income over the next five years.

If the investor plans to sell the Estepona property later, possible profits should also be taken into account. Finally, any losses from taking out a mortgage or other type of property financing must be taken into account, as well as any gains from the sale.

Convert Estepona property to Holiday Accommodation

For property investors in Estepona, converting a home into a serviced apartment would mean higher rents than the normal rent increase. As a result, many people are buying investment property in Estepona and then converting these homes into serviced apartments to maximize yield.

The types of property used for serviced accommodation in Estepona are often the same as those you would use to buy to let. Where you have a guaranteed short-term rent, it’s not as rigid as renting out a property.

Lease Estepona property to the Worlds Best Rehab

Remedy Wellbeing is a bespoke, luxury treatment center with a significant corporate footprint in Spain. This means they treat just one client at a time in luxury 6* accommodations. All properties used by Remedy Wellbeing are as unique as they are inspiring. If you own or represent some of the most exceptional, unique and luxurious accommodations in Spain, Remedy Wellbeing can be contacted via their dedicated property management company, Physis Realty.

Disadvantages of investing in Serviced Accommodation in Estepona

  • Holiday accommodation is more of a business strategy than a property strategy, and the workload is far more intensive.
  • You’ll need to furnish your holiday rental accommodation in Estepona
  • You’ll need to clean the rooms and change the sheets every time your guests leave.
  • Who does all the laundry?
  • Who does all the cleaning?
  • Who’s going to do all the work for you in Estepona
  • How are the guests actually going to get in?
  • Are you going to have somebody to do a meet and greet?

Buying investment property in Estepona to convert into serviced accommodation or holiday lets is not really considered an investment, because the amount of work involved make it a full time job.

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