Search

Property type

Location

Bedrooms

Price from

Price to

Property ref

DO NOT invest on the Costa del Sol if...

Tatiana Pekala Tatiana Pekala |
Title

"The investor's greatest problem, and even enemy, is usually himself" - Benjamin Graham.


What you will find in the article:

Dream Property Marbella has been operating on the Costa del Sol for years and we have completed hundreds of property purchases and sales. For years, we have also been bringing Investors closer to this market and sharing knowledge on how to safely invest in Spanish real estate. However, we often forget that investing in property abroad is not for everyone. Therefore, today we will try to answer the question: "Who should NOT think about investing their money in the Costa del Sol?"

Do not invest on the Costa del Sol if:

1. You dream of a small house, preferably right next to the beach, but you want to implement this investment with capital that in your country would not be enough to buy a studio apartment in a medium-sized city.  

The whole world invests on the Costa del Sol and it is one of the most expensive locations in Spain. Therefore, there are no reasons to believe that real estate here is cheaper than in your contry. Our experience shows that you can go for property purchases on the Costa del Sol with a minimum of EUR 150,000.

2. You believed in the return on investment in real estate on the Costa del Sol at the level of 15 - 20% per annum and you did not see a red light.  

In fact, there are those here who promise such a return and you can always see for yourself, or rather your wallet, whether such a return is possible. However, official sources say that in 2022 the ROI was around 7%, but our experience shows otherwise. No matter how we count it, returns don't want to be higher than between 3.5 and 5%.

3. You don't like strangers smiling at you on the street and are annoyed by different skin colours, languages, religions and sexual orientations. 

Not everyone has to like it, but when choosing Costa del Sol, remember that the whole world invests here. The Costa del Sol is a transnational, cosmopolitan region with a very high degree of tolerance. And this, combined with a friendly climate, makes it extremely attractive to investors from around the world. Read more about the Costa del Sol

4. You limitlessly and unreflectively believe in what you see and hear on TikTok, Youtube, Instagram, and what is related to the Spanish real estate market.

This applies to talking heads that promise great returns on investment, and those who threaten that if you leave your home for a moment, it will be taken over by squatters (find out more about ocupas) . Before drawing far-reaching conclusions about a topic, it is worth verifying the information appearing on the Internet. Even if someone has thousands of subscribers, millions of views does not mean that what he/she says/writes is factually correct. For example, in the entire province of Málaga (Costa del Sol) in 2022, 415 crimes of unlawful seizure of property were registered. There are 900,000 properties in this province, so ocupas "occupied" 0.046% of them.

5. You are afraid of what you do not know and assume that it is safest to keep your financial surpluses in a sock, under a mattress or in another similarly "safe" place.

There's nothing wrong with it. Investing is not for everyone, and investing in real estate abroad is not at all. I do not mean only financial opportunities, although these are very important. Therefore, if you want to invest your surplus in real estate on the Costa del Sol, remember that there is some risk in every investment and the best way to minimise it is to carefully check the information on this subject, i.e. to learn. Preferably from people who have already been where we want to go. 

6. You do not tolerate the sun and high temperatures in summer and warm winters without snow or frost.  

On the Costa del Sol we have an average of 320 sunny days a year, and snow appears only high in the mountains. 

If after reading the above you still feel that investing in the Costa del Sol is not for you, then you may be right.

However, if you did not find yourself in this, I invite you to use our search engine and contact us :)

 

See also

What you need to know when applying for a mortgage loan in Spain in 2024

Inheritance of real estate in Spain, or what you need to know about Spanish inheritance law

Discover the 3 most frequently asked questions in the first 4 months of 2023

Taxes and fees related to buying a property in Spain in 2023

Contact Offer