Reasons to get a Spanish Mortgage

2. Increased leverage.

Do you believe that Spanish property is a good investment? Many investors do, and they have enjoyed average annual price increases of 20% during the last ten years. Why not consider using your capital to increase your property portfolio by buying several properties instead of one? The profitability on a short term investment is currently very uncertain, there is a widespread belief in the market that that property prices have reached their peak and are expected to stabilize in the near future. Nevertheless it is anticipated that property prices will rise again in the next 10 years. Many believe that the average price increase will be 5-10% anually. As an investor you should also consider that you’ll gain money on the investment not only by price increases but also by renting out the property. The demand for rental properties is very high and therefore there is good income earning potential. The capital gains and rental incomes will most likely exceed the cost of the money used to finance your investment properties.

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