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Finance and Investment Returns
There are many reasons for buying a property along the south coast of Spain, but one of the most attractive is the return you are likely to get for your investment. In the last 5 years the demand for property along the south coast of Spain has increased dramatically. Property prices have also increased substantially and continue to increase by between 15 and 20% per year. With the baby-boom generation approaching retirement within the next 10 years and many more people looking to go on holiday or retire in the sun than in previous generations, demand for these properties is expected to increase even more across Europe, with prices rising consistently.
Rental Income
Facts and Figures
You will be able to see below the possible returns you could expect as a return on your property. For this we have used an example of purchasing a property worth £145,000 and taking a mortgage for the full value of the property. This means that if you have any cash to invest, your mortgage costs will be lower and profit margin higher. For this we have also only put the house prices up by 15% per year and set rental income at 4% per year to indicate the lower end of the scale.
| Property value at date of purchase: | £145,000 |
| Property price after 5 years: | £291, 646 |
| Profit on purchase: | £146,646 |
| Rental income for 5 years: | £29,000 |
| Mortgage payments: | £43,500 |
| Total Cost to you during 5 years: | £14,500 |
| Net Profit: | £132,146 |
These figures cannot be guaranteed - property prices can go down as well as up.
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