It’s easy to see why Spain has become a favourite destination for foreign property investment.  The fantastic year-round climate, comparatively inexpensive cost of living and close proximity to the UK have all made Spain the ideal location for those looking to purchase property overseas.

The Dream Lifestyle

Legal foreign residents make up 2.8 million of Spain’s population, and tourism figures are ever-increasing (the current COVID blip notwithstanding).

Easily accessible from the UK, Spain has links to the majority of regional airports.  Also, you can get there in as little as two and a half hours.

Spanish property prices are still much lower than those back home.  This allows many people to afford the dream lifestyle of owning a holiday home or retiring early, who would not be able to afford such luxuries in the UK.

Flourishing Rental Market In Spain

Investing in a good property in Spain, in the right location, will give you substantial rental potential with excellent returns on your investment.

The right property could potentially be rented out for six months of the year to cover costs, with the accommodation available for your own use, free of charge, for the remainder of the year.

Get On The Property Ladder in Spain

Struggling to get your foot on the first rung of the property ladder in the UK?  Due to the relatively cheap property prices, there’s a recent trend amongst British under 30s to buy their first property in Spain.

It’s much easier to do than you’d think, as the path to buying Spanish property is well-trodden.  There’s lots of expert advice available, and as long as you use a decent, independent lawyer, it should all be fairly straightforward.

Right now, Spanish interest rates are low, and there will soon be a huge demand for rental accommodation following the imminent lifting of COVID restrictions.  All in all, that means that right now is the perfect time to make the intelligent decision to invest in Spanish property.

Off-Plan Investment in Spain

Buying off-plan means making the decision to purchase a property before building work has finished. Sometimes, this means that you will commit to buying before construction has even begun, but not always.  Whether it’s almost finished, or not started yet, it’s still technically known as an off-plan purchase.

Purchasing Early Means Lower Prices

As construction progresses, prices will steadily begin to rise.  Units sell much faster when buyers are able to view them.  It’s best to buy your property as soon as possible, during the earlier stages of development when prices are far lower.  Those people who make the decision to invest in a development early will always see the greatest return on that investment.

The first properties to be sold in any given development will always be the best units.  They offer the highest capital appreciation in the shortest time frame, and usually demand the highest rental incomes.  Penthouse apartments are a classic example of this.

Where To Buy Property In Spain

Arguably the best-known part of Spain amongst foreigners, the Costa del Sol has something for everyone.  A solid choice of location for property investment in Spain, it’s one of the most popular relocation spots in Europe, and the right property will give you a generous rental income.

The Costa del Sol has some of the best beaches in Spain, and has plenty of affordable property.  Many of our properties in the Costa del Sol are available off-plan right now.  The sooner you commit to a purchase, the greater the return on your investment will be.

Properties In The Costa del Sol

Benahavis

The community of Benahavis sits slightly inland from the Costa Del Sol coast, between the towns of Marbella and Estepona, and is one of the most sought-after locations for property investment in Spain.

Perfect for peace and quiet, the luxury properties in Benahavis are some of the most exclusive in the Costa del Sol.  Take a look at some of our properties located in Benahavis here.

If you’re quick, you’ll be able to buy them whilst they’re still off-plan, and at the lowest prices.

Estepona

Alternatively, between Marbella and Manilva lies one of the prettiest towns in Spain, Estepona.  Remaining true to its fishing village origins, you will fall in love with the white-washed houses, colourful geraniums and traditional Spanish seafront promenade.  Check out the beautiful properties located in Estepona here, most of which are available off-plan.

To talk to us about any of our properties in Spain, give us a call on 03333 034 767 or send us a message.

The post Property Investment In Spain appeared first on Lujo Investments Worldwide.

With the stark differences between the regions of the UK, choosing the best investment has become even more challenging than ever before.

For the longest time, higher overall returns were seen in investments in the South-East and London areas.

However, prices have become stagnant recently as more and more  buyers are being priced out of the market, while investors are struggling to find good yields.

Today, more and more investors look for fantastic property opportunities in the north of England that now enjoys the highest yields in the UK,

with house prices expected to grow even bigger in the near future.

However, where exactly can you find such exciting investment opportunities in the North?

Birmingham

With a regional economy worth £90 billion and a metropolitan population of 4.5 million,

Birmingham has enjoyed significant benefits from the latest infrastructural investments.

HS2’s latest development will cut down travel times from London to only 50 minutes, signalling a higher demand for Birmingham properties.

The chronic limitation of rental accommodation is further increasing property prices.

Birmingham Archives – Lujo Investments Worldwide

Liverpool

Liverpool is changing from a port city into a fantastic cosmopolitan city.

The city is currently enjoying significant benefits thanks to the public investment and large-scale job creation that make it the fastest growing economy in the UK.

The £5 billion-worth scheme of Liverpool Waters is one of these regeneration projects.

It is a brownfield site of 60-hectares to be developed into five brand new neighbourhoods.

There are some great opportunities to invest here and earn a net yield of up to 8%.

Liverpool Archives – Lujo Investments Worldwide

Manchester

Dubbed as the North’s unofficial capital, Manchester is now the fastest growing city in the United Kingdom outside of London.

The city currently has the highest yields in terms of rent per square foot –  almost double that being offered in London.

Manchester homes have an average price of £152,000, making it relatively cheaper to purchase here than the average price of a home in London and the south east

which currently costs around £500,000.

In addition, Manchester also boasts a sizable rental market.

The latest regeneration projects in this city have also led to a significant increase in property demand and these include the digital Northern Quarter and the Salford Quays complex.

Manchester Archives – Lujo Investments Worldwide

Sheffield

As one of the UK’s greenest cities, Sheffield is home to over 2 million trees and has more than 80 parks.

This makes it one of the most interesting places for investment in the North.

This is also where you can find two of the biggest universities in the UK.

However, most of these students don’t have access to the accommodation provided by these universities.

The current numbers are expected to increase further as the population of international students are expected to grow up to 15% to 20% in the coming five years or so.

It is easy to see that the North is poised for some significant growth in the near future, so don’t miss out on these exciting opportunities!

Sheffield Archives – Lujo Investments Worldwide

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However, a good businessman knows when the time is ripe for making the most profit.

If you are into profit, the best way to profit right now is to invest in property, unlike popular opinion. 

Here is everything you need to know about the advantages of property investment right now:

• Positive house predictions

• Uncertainty and paranoia can help you make great profit

• The government wants you to invest in property

• More people are moving towards renting

Positive house predictions

Many articles have been written showing that right now may not be a good time to invest in property mainly because of the instability in the real estate market right now.

However, even amidst all this chaos, Savills’ five-year house forecast prediction in the UK shows that the prices of houses will go up by 15% by 2024.

This is even considering the fact that people are temporarily banned from kicking out tenants and the COVID is still among us. 

Uncertainty makes for the best profit

Everyone knows that taking a road seldom taken is the best way to reach a destination that many others can’t.

If you want to make a higher profit, you have to risk more.

It is said that during the great Global Recession of 2007 to 2009, the average prices of houses fell from £189,193 to £154,452.

However, as soon as the period of Recession was over, the prices climbed back to £173,417 by 2010 and bounced back to even more than before by 2015. 

People who had invested in a house in 2009 made a profit of at least £34,741 in 2015 just by selling the house without needing any sort of renovation or marketing. 

The pandemic makes for great profit

In the pandemic, the prices of houses are seemingly falling again.

If anything, right now is the best time to invest in property.

Not only will you get a great price, but once the prices start going up again, you will start seeing an immense profit in property investment. 

Do note that the pandemic is expected to end by the mid of 2021 and everything is expected to go back to normal soon after.

This is when the prices will bounce back, and you will be able to make a great profit.

Government plans to improve the property market

The United Kingdom’s government has planned to improve the property market because of so low investments in the region by dramatically reducing the Stamp Duty Land Tax.

This means that anyone who buys a house right now saves up £10,000 just from the stamp duty.

All properties purchased under £500,000 will have 0% SDLT. 

• Even if you are not thinking of selling, the price of rent is expected to go up considerably.

• According to the Resolution Foundation, 4 out of 10 millennials are privately renting even at the age of 30.

• More than a third of this population is expected to rent out until retirement. 

Renting is passive income that is generated as long as you maintain the buildings.

This means that right now is even more of an opportunity to invest in property so that you can renovate it and make it good enough for renting for a lifetime. 

Final Thoughts:

We hope that this article was able to shed light on all the advantages of property investment right now.

It’s a great option to invest in property at this time. So, you can put your savings in this investment to get these amazing benefits and have a chance to get a bright future ahead.

If you would like more information, please contact us on (+44) 033 3303 4767, email sales@lujoinvestments.com or click here to complete a contact form and we will get back to you.

The post Why Now Is A Good Time to Invest in Property appeared first on Lujo Investments Worldwide.

Of course, you’d need to take a businesslike approach to what would be a major investment in a country where market conditions and property laws are different to those in the UK.

You’d also need to be very clear on whether you were buying an overseas property specifically to rent it out as an investment, or whether you’d be using it as a holiday home.

The appeal of the continent

The European property market has been bullish in recent years as investors remain confident, which is expected to drive ongoing growth in a number of continental real estate markets into 2019 and beyond.

Main European capitals such as Paris and Berlin are considered highly desirable for real estate investment. Indeed, France, and Germany – along with the the UK – represented the lion’s share of investment volume, representing over 70 per cent of transactions before 2016-17. Nor has this strong appetite for property investment in these big cities seen any sign of slowing down.

Elsewhere, investor enthusiasm has seen consistently rising property prices in cities such as Lisbon, Dublin, Rotterdam, and Zagreb in Croatia, which are experiencing particularly high levels of growth.

European buy-to-let markets continues to thrive

A significant European buy-to-let trend has gathered pace in recent years, with real estate increasingly regarded as an appealing investment type.

Rental yields on buy-to-let properties in continental Europe will typically generate between two and four per cent after deducting your overhead charges.

And, while this is not spectacular, it is substantially better than the one per cent yield on, for example, a long-term corporate bond. It’s also worth considering that a buy-to-let property enables investors to cash in on potentially higher yields going forwards.

Which property types are creating better returns?

A major trend in the European housing is buyers looking for smaller houses and apartments or those that are part of new developments, rather than large villas that are more expensive to buy and maintain.

Older investors, who usually have greater financial resources, may be able to afford a big property, but are put off by the prospect of coping with an extensive maintenance programme. On the flipside, younger people typically have less cash to spend, and are reluctant to spend time managing the maintenance of large properties.

Focusing on rental income and not capital gain

You should also take into account that investor focus in Europe is on rental yields, as opposed to capital growth. This is because prime residential markets are already expensive, so there is little scope for significant increases, at least in the short term.

Of course, the loss of a tenant often means a void period and finding a new tenant can be more difficult in continental Europe than in the UK. Even so, an attractive property in a popular location will reduce the risk of a void period in the first place, while making it easier to bring in a replacement tenant should the need arise.

Need-to-know info about European buy-to-let investments

Different European countries have their own financial regulations that you should make yourself aware of before going ahead with any transaction.

It’s especially important to establish:

• What local taxes you must pay
• Whether you would incur any capital gains tax liabilities
• The implications for the property in the event of death
• Whether you would be subject to inheritance taxes

A further consideration is that in continental Europe, tenants enjoy greater legal protection than in the UK.

Authored by Melvin Lunn

Melvin has over 20 years’ experience in global property sales and investment. For more information on investment in an overseas property contact him 03333 034 767.

The above article is written as a guide only and does not constitute financial advice. Professional advice should be taken before entering into any property investment or financial agreement.

The post Is now a good time to invest in European buy to let? appeared first on Lujo Investments Worldwide.

New UK-wide research suggests the sector can be highly profitable, although some parts of the country are much more profitable than others.

With landlords having to cope with issues like mortgage tax relief changes, the tenant fee ban, and reformed renting criteria, it’s never been more important to maximise your income. Here are my analysis of the UK’s buy to let hotspots.

North West of England is a buy-to-let powerhouse

A report from specialist lender Kent Reliance suggests landlords in the North West of England are seeing the highest rental returns on buy-to-let properties in the UK, closely followed by investors in Yorkshire and the East Midlands. 

The research also shows that returns in the South East and London continue to be muted, as higher house prices reduce the benefits of rents. 

According to the research, the North West delivers the highest returns, with average yields of 6.2 per cent, while Yorkshire and the Humber is close behind with yields of 5.9 per cent, followed by the East Midlands where average yields are 5.4 per cent.

The study measured prospective rent against the cost of buying a property in current market conditions. However, long-term buy-to-let investors who bought at lower prices will probably be generating even higher rental returns.

Capital’s performance dips, though prospects are improving

The picture is not so rosy in the South East, which propped up the rest of the ‘league table’ with yields of four per cent. Meanwhile, London and the East of England did not fare much better, with yields of 4.1 per cent and joint second-to-bottom rankings nationally. 

However, despite London’s relatively weak performance in comparison to other regions, the capital’s yields are still at their highest levels since 2015.

Nationally, the average yield is 4.5 per cent – fractionally up from 4.4 per cent at the end of 2018 – and representing the highest level since the first quarter of 2017. 

Identifying high-yield areas within regional markets

It’s also important to keep in mind that specific areas continue to deliver returns that outperform regional averages.

Another study from letting agent Portico Host revealed that within the North West market, the Liverpool area of Fairfield generates the highest yields of 13.6 per cent, followed by neighbouring Kensington at 9.8 per cent and Anfield at 9.6 per cent.

Why landlords are attracted to university hotspots

University cities with high student populations are particularly attractive as buy-to-let investment locations.

Liverpool, Preston, Manchester, Lancaster, Nottingham, Leeds and the North East have some of the country’s highest rental yields. Among the most lucrative is the NG1 postcode – an ideal location for students at Nottingham Trent University – where the average rental yield is almost 12%.

Advantages of providing student accommodation include regular term times and an ongoing flow of new students, fewer void periods, and the ease with which landlords can find suitable tenants.

Authored by Melvin Lunn

Melvin has over 20 years’ experience in global property sales and investment. For more information on investment in the UK buy to let market contact him 03333 034 767.

The above article is written as a guide only and does not constitute financial advice. Professional advice should be taken before entering into any property investment or financial agreement.

The post What are the UK’s buy to let hotspots? appeared first on Lujo Investments Worldwide.