The property market in the UK is going through a dilemma. Property prices in London are being bought up by cashed-up foreign investors and it is pricing locals out of the market.
The starting prices for 1-bedroom properties within London start from £270,000 and for a 3-bedroom property, the price could start from £600,000. Given that the minimum deposit most people would need would be around the 20% mark, they would need between £54,000-120,000 plus additional budget for legal and real estate fees. Over the course of a 30-year mortgage, Londoners would be scraping their pennies together for a sun-kissed holiday, as well as hoping that they will profit from the equity gain in their property.
With average salaries in London ranging from £27,531 to £48,023 and the city being dubbed as one of the most expensive to live in the world, its no wonder that people are looking elsewhere to get their foot on the property ladder.
The dream of living in the sunshine is attracting more Britons to invest in the Spanish property market. When given the choice between a 1 bedroom flat hidden away in the dark alleys of inner London or an apartment that boasts twice the living space and regular sunshine and that overlooks the beach; the British will be tempted to opt for the Spanish option.
Some of the most popular properties listed on Propertyandspain.co.uk offers property owner’s sea views or a golf lifestyle. The cheapest properties start from £120,633. When compared to the minimum cost of buying a 1 bedroom London flat, in Spain a person could get a 3 bedroom detached villa with a pool in Alicante. Property and Spain director Julian Walker has said, “Sparkling new properties on our website start from just €155,000. With the euro still weak against the Pound, finance very affordable and Spain’s market having turned the corner, now is a great time to be in the market for a new Spanish home.”
Furthermore, the economic outlook is promising for property investors following reports that the market rose by 6.6% in 2015 and that sales figures were higher in almost all areas of Spain. It appears to be the perfect time for UK investors to purchase a property before prices begin to rise.
Before jumping in and purchasing a property, it is important to speak with an expert that can provide advice on the purchasing process and any legal and financing requirements to ensure the purchase of your property is a smooth, while minimizing any risk that could affect your property ownership.
About the author: Julian Walker is the founder of PropertyandSpain.co.uk, which is owned and operated by overseas property specialist Spot Blue International Property. Julian is a regular commentator for both the Spanish and Turkish property markets and has featured in publications such as The New York Times and Daily Mail. You can follow Julian on LinkedIn.
Tel: +44 (0)208 3396036