Investment Property in Palafrugell

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Buying Investment Property in Palafrugell?

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

Buying investment property in Palafrugell 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 Palafrugell are purchased by non Spanish Nationals and are either used as a holiday homes or straightforward by and hold investments in Palafrugell.

Once these properties have been renovated and rented then investors in Palafrugell 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 Palafrugell or elsewhere.

How easy is it to buy investment property in Palafrugell?

Buying an investment property in Palafrugell might be more complex, but Spain is a very welcoming country for foreign buyers as foreign ownership of properties in Palafrugell 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 Palafrugell 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 Palafrugell 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 Palafrugell?

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

Map of Palafrugell

Palafrugell (Catalan pronunciation: [pələfɾuˈʒeʎ]) is a municipality in the Mediterranean Costa Brava, located near Palamós in the comarca of Baix Empordà, in the province of Girona, Catalonia, Spain. With 22,365 inhabitants it is the largest city of its comarca. Several coastal and interior towns (Llafranc, Calella de Palafrugell, Tamariu and Llofriu) belong to this city.

The area’s summer climate and beaches have been exploited for tourism. In additional to international tourism, Palafrugell serves as a summer holiday town for residents of cities such as Barcelona and Girona.

This medieval town was once fortified but is no longer. Many narrow streets emanate from Plaça Nova -a large square with bars, restaurants and boutiques. The local government (Ajuntament) sponsors activities such as concerts and dances including the traditional Sardana. St. Martí’s church was built in the late 11th century and is close to Plaça Nova.

There is a new bus station belonging to Grup SARBUS whose local division is known as Sarfa. The station has a regular bus service, servicing the Costa Brava region (including Llafranc, Calella de Palafrugell, and Tamariu) as well as Barcelona.

Palafrugell was reputed for its cork manufacturing in the 18th and 19th centuries. The largest factory was owned by the American company Armstrong and employed hundreds of locals. Its closing in the 1970s led to severe unemployment. The factory’s tower still stands, and there is now a small museum commemorating the cork industry just below it.

Making Money on Investment Property in Palafrugell

The best way to make money on Palafrugell 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 Palafrugell

Fees for buying a property in Palafrugell 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 Palafrugell: 6–10% (existing properties) / VAT (or IVA) at 10% (new properties in Palafrugell)
  • Notary costs, title deed tax, and land registration fee in Palafrugell: 1–2.5%
  • Legal fees for buying investment property in Palafrugell: 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 Palafrugell, with a 18 year track record the agency has been directly or indirectly responsible for the largest volume of transactions in Palafrugell in the past two decades.

Types of investment property in Palafrugell

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

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

Types of property investment deals in Palafrugell

The main types of property deals in Palafrugell are:

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

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

Buy to hold in Palafrugell

Long-term rental property in Palafrugell 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 Palafrugell 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 Palafrugell 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 Palafrugell 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 Palafrugell 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 Palafrugell 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 Palafrugell property to Holiday Accommodation

For property investors in Palafrugell, 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 Palafrugell and then converting these homes into serviced apartments to maximize yield.

The types of property used for serviced accommodation in Palafrugell 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 Palafrugell 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 Palafrugell

  • 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 Palafrugell
  • 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 Palafrugell
  • 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 Palafrugell 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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