What type of property should I buy?

Choosing the right type of property to invest in is of paramount importance to the investor.

If the intention is to retain the property for personal use then individual circumstances will influence the buying criteria. However the goal must always be to invest in property for which there will be a high demand both in terms of future resale and or rental potential.

Other points worth considering (especially if interested in longer term rental) are maintenance together with running costs and management charges.

The following table examines the key criteria:-

Property type - Apartment

Investment - 2 bed apartment most fluid in Spain. Viewed as the most secure investment
Maintenance - Value for money with usually very low running costs
Running costs - Low community charges usually spread among many apartments
Additional information - Most popular property purchase in Spain-Best resale and rental potential
Location - Typically within a complex of varying size

Property type - Townhouse

Investment - Good Investment especially for the longer term rental market
Maintenance - Little maintenance
Running costs - Low running costs
Additional information - Comparable with a semi detached house often with own garden
Location - Typically in a smaller complex and more private than apartment

Property type - Villa

Investment - Retirement property Ideal choice for buyers with good amount to spend
Maintenance - Potentially high
Running costs - Increased annual running costs private pool etc
Additional information - Best comparison with residential property in UK. Price varies according to location
Location - Increasingly, villas are being sold off plan by developers as part of an urbanization which contributes to greatly reducing running costs

Property type - Countryside Villa or "Finca"

Investment - Not worth considering in the majority of cases
Maintenance - Often in need of extensive and ongoing refurbishment
Running costs - Low running costs typically as properties often have their own utilities i.e. water
deposits etc
Additional information - Large plots of land
Location - Frequently rural and some distance from basic amenities such as supermarket and public transport

You will gather from the above table that in most cases the best type of property for an off plan investment in Spain is mostly an apartment and in particular a 2 or 3 bedroom apartment.

This applies whether the investor intends to sell prior to legal completion or indeed intends to keep the property as a longer term rental investment.

Wherever possible priority should be given to properties with features that will influence resale potential for example properties on golf courses, close proximity to the beach, secure gated communities, corner and end units, large balconies and properties with roof terraces.

Next Page- How much do I need to invest?

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