Why Property is the Smart Investment
At Villa Marbella Now we have always been convinced about the exceptional benefits of investing in property, but it’s always nice to have our convictions confirmed by an authoritative international source.
In an article in OPP Today, off-market specialist the YPC Group declares, “Property beats all other forms of investment”. Outlining several reasons why other forms of investment offer no competition to real estate, new-build specialist David Lines says, “When I first started investing in property, I did so for a number of reasons. These included the fact that property investment is easier to understand than other investments. With stocks and bonds, it’s all about balance sheets, forward ratios, price-to-earnings multiples… I’m sure you get where I’m coming from. So, for me, investing in property was (and still, is) easier to get my head around.”
For the record, his four reasons why property investment is king are:
- Investors are in control
“When I was investing in the stock market, I always felt that my investment was in someone else’s hands: the management and employees of the company I’d invested in. Investing in property is different. Even though I hand the property management side of things over to a company that’s better equipped than me to do the job, I’m the one in control of my fate.”
- Rental income pays better dividends
“When you look at the income you get on stocks or government bonds or cash accounts, property beats all of these into a cocked hat. With property investment, I can set the rent I want to charge (in line with the market, of course) and manage my costs around that.”
- Fantastic capital gains
“Property is always in demand… Even when the market turns down (as it did after the global financial crisis), the property market bounces back quickly when you buy with fundamentals. And, in comparison to the stock market again, property investment has given me a capital gain over the last 20 years that stock market investors can only dream about.”
- Gearing powers profits
“Just like driving a car, when you’re investing in property you get to benefit from something called ‘gearing’. The engine power is the same, but when you move up a gear it has to work less hard to move the car faster.”
Meanwhile, more good news…
- Concerns about the repercussions of the Brexit vote understandably remain on the front burner, but financial indicators are still confounding expectations that the British economy is heading for a slump. Latest figures show UK growth at 2.3 per cent in the third quarter, which is further good news for the Costa del Sol real estate market and its mutually beneficial links with British buyers and vendors.
- The average price of Spanish homes rose 3.8 per cent year-on-year in the second quarter of 2016, according to Eurostat. Basing its report on official figures from each country, the EU statistics agency said this compared with a Eurozone average of 2.9 per cent, and four per cent for the whole of the European Union.
Luxury Living
One of the key Costa del Sol areas that has maintained its excellent investment potential, even through the difficult recent times, is Marbella’s Nueva Andalucía. The ultra-modern villa featured here offers shrewd investors excellent value at €1,950,00.
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