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Whatever the property and stock market conditions around the world, one fact remains certain - property is one of the most secure, better performing assets in which you can invest your hard earned cash over the longer term.
Now, the key to the truth in this statement is that you have to be prepared to retain your real estate asset for the long term...but you can still make money from it even during the most uncertain times. To do so you have to be prepared to let your property.
Spain, possibly one of the least likely locations you would consider for property based potential at the current time, may actually be your best bet if you want to take this approach to profiting from property.
Spain has been rocked by reports of planning permission problems and by talk of a downturn in interest from second home purchasers. However, Spain has already seen a negative correction in real estate prices meaning that its property market is better balanced, and at the same time it has retained its record for being the number one holiday destination in the world with British holidaymakers and it also remains in the top ten destinations in the world for global travel interest.
These factors mean that Spain is an ideal location for those seeking well-priced property stock. However, Spain is a large nation and one really needs to be more location specific when it comes to choosing where best to invest for the long term. The one location that stands out above all others in Spain at the moment is the Costa Tropical or Tropical Coast.
The Tropical Coast is in southern Spain and it spans a stunningly beautiful, sun kissed and beach framed region that reaches from Almunecar in the west to Albunol in the east. It is easily accessed from the UK, Ireland, mainland Europe and the rest of Spain via Malaga and Granada airports, and what's more, the Costa Tropical in Spain is also benefiting from significant road development plans, which means more of the stunning coastline is becoming accessible.
According to Martin Dell, MD of award winning Spanish property portal Kyero.com: "previously the Costa Tropical was overlooked by second home hunters in Spain simply because it was less accessible - but now all that is changing and the region is benefiting from significant growth in the numbers of visitors it is receiving. Meanwhile, property prices have yet to reach anywhere near the national average meaning that anyone looking for a second home, holiday home or investment property can benefit from real estate that is up to 31% cheaper than the Spanish median.
In terms of what the Costa Tropical has to offer, it enjoys a micro-climate that allows local food producers to grow tropical fruits such as mangoes for example, and which means that those who visit can enjoy up to 320 days of unadulterated sunshine every year. Having been less well explored over the years, the Costa Tropical has been thankfully untouched by mass tourism or heavy development and it remains truly Spanish and truly beautiful.
The beaches, many of which have been awarded the coveted Blue Flag standard, are pristine and give soft sandy access to the crystal clear blue waters of the Mediterranean Sea from which your evening meal is highly likely to have been freshly caught. And if you tire of beach hopping and lazing in the sun, another fantastic factor of the Costa Tropical is that there is just so much to do, to see and to enjoy.
Tourists can dive, snorkel, sail, they can fish, hike, bike or even fly a kite, play golf, ride a horse, climb a mountain or take in the historic sites for which the entire region of the Tropical Coast is world famous.
All of these factors mean that there is not only strong interest in visiting the region already, interest is growing and likely to remain intense because the Costa Tropical has so very much to offer. On top of this, the rental season is year round meaning that a well located property can be let out for up to 52 weeks a year, thus maximising an investor's return. Over the longer term, the increasing improvements in accessibility to the region can only serve to push up interest and therefore property prices as well.
In conclusion, if you want to invest in an asset that is more likely to serve you well in capital appreciation terms over a longer period, and you want to profit from that investment in the interim in the form of rental yields, a well located property of interest to an expanding base of demand is probably your best choice. Costa Tropical in Spain is a region of the world where tourism is expanding, property prices have balanced out, and where demand for rental and resale stock is increasing - meaning this is one location in the world where an investor can consider committing to a property purchase even during these uncertain financial times.
Anyone have an opinion on or experience of the Costa Tropical market?