Submitted by: Dale Campbell

When it comes to buying property, Costa Blanca is a fantastic location for property investment as it has a perfect combination of awe-inspiring natural beauty and a cultural legacy. Costa Blanca is well known for its resorts such as Benidorm and Elche, the palm tree capital of the world. Golf lovers flock to the area to enjoy year round golf thanks to a climate that provides over 300 sun filled days a year. Food connoisseurs enjoy meals that have been influenced by Costa Blanca s Moorish agricultural past and rice is a main ingredient in many dishes, which includes the famous paella. Many people enjoy a glass of fine wine produced in the area, to compliment their food.

Besides being one of the most beautiful and sought after destinations, Costa Blanca has many different types of properties that are suitable for most people s budget. Buying property in Costa Blanca is all about location, location, location. If you have a large budget, then properties along the seafront would be ideal as they tend to be more expensive then else where. Seafront properties are known as real estate paradise as they are sought after areas with holiday makers and the properties can bring in some healthy rental income for the entrepreneurial property investor. If you are looking for a property as a rental income, it is advisable to choose one that has some beautiful natural sights and is near attractions like a Water Park and an Animal Park. Being located near a shopping mall and public transport can also increase your asking price for rent, and add value to your property when it comes to reselling.

For some property investors the seaside properties are too expensive, so they are traveling inland where the property prices are easier on the pocket. This is proving to be a popular choice for people relocating to Spain as not only are property prices cheaper, but the way of life tends to more Spanish then places along the seafront that have had a heavy British influence for many years.

Once you ve decided you re going to buy a property, set a budget and stay with it.

In Costa Blanca property prices vary with the seasons. Therefore, when you are buying property in Costa Blanca consider the time of year as the off-peak season can provide you with property that is cheaper than at the height of the tourist season. Visit the property at least twice before you make a decision, and visit it at different times of the day. Talk to the neighbours about the area and listen carefully to what they say. Also check what amenities the property has, such as electricity, water and gas, so you don t have any surprises once you ve bought the property.

Having some knowledge of the property market in Costa Blanca is an important aspect to consider when buying property as the market is different than the UK. For example the buyer is liable for a transfer tax (IVA) and the rate is dependent on whether the property is a new build or a second-hand property. There are online service providers providing legal advice as well as up-to-date details of available real estate. Confirmation of the reputation and knowledge of the real estate consultant is a must to ensure reliable information about the property you want to buy. It is also important to have a legal advisor to check ownership of the property and any outstanding debts on the property before you sign any paperwork.

In conclusion, if you are looking for an overseas property investment, buying property in Costa Blanca has a lot to offer investors great weather, popular with tourists, rich with culture, and different types of properties to suit all budgets.

About the Author: Dale Campbell wrote the Article ‘Buying Property in Costa Blanca is Real Estate Paradise’ and recommends you visit http://www.homesoverseas.co.uk/buying-property-in-spain/valencia/the-costa-blanca/1884 for more information on

buying property Costa Blanca

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Why Is Real Estate a Safe and Financially Rewarding Investment

by

Michael Roche

Whereas real estate is not normally a short term investment, there are windows of opportunity for rapid financial gain created primarily by changing market and economic conditions. As a long term investment, real estate is probably the safest investment one can make. Inflation and supply vs. demand factors virtually insure appreciation over time. We can’t make any more land on which to build but we continue to make more people and they have housing needs. Managing the return on investment is complicated by the real estate downturns that occur periodically over the decades. Of course the latest downturn was the worst since the 1929 depression so the investment is optimized by those who buy at the end of the downturn and sell at the peak. Timing is everything!

Changing economic conditions radically influence real estate market conditions and vice versa. Each change in the real estate environment creates new buying and selling opportunities. An example is the rental property investment opportunity fostered by our most recent deterioration of property values. Low interest rates and escalating rental values work in concert with foreclosures and short sales properties to provide an unusual opportunity to purchase rental properties that provide a positive cash flow.

Perhaps the most appealing characteristic of the real estate investment is the return on investment attribute. Stock market investments can generate a return based on the amount invested but the entire investment is at risk. Appreciation in real estate values create equity based on the increase in value not the amount invested. A property purchased for $200,000 with 20% down payment that appreciates 10% of the purchase price produces a return of 50% on the invested dollar. If over time, the average yearly appreciation rate is 5% the appreciation is actually compounding generating appreciation on the previous year s appreciation. Naturally the homeowner is making monthly principal, interest, insurance and real estate tax payments but the property is providing a home as well. In the case of rental property the mortgage payment is offset by rental income.

Another enhancement of real estate as an investment is the significant tax deduction on a primary residence. All real estate taxes and mortgage interest are deductible on federal and state tax returns providing a substantial reduction of the tax obligation.

Financing a home with an FHA mortgage and asking the seller to cover closing cost is an ordinary practice and greatly reduces the buyer s financial investment. FHA insured financing requires a 3.5% down payment and closing cost typically are 2 to 3% of the purchase price. The penalty is that all mortgages with less than 20% down payment require mortgage insurance.

The primary factor that prevents the real estate investment from qualifying as a short term investment is the cost to sell. Unless the property was purchased at a below market price, commissions and closing cost can preclude a seller from recovering the initial investment and realize a profit from a recently purchased property. A home is a nest egg that hatches with time. The combination of appreciation based on property value rather than investment, the tax deduction of interest and property taxes along with all of the other personal and family rewards are the reason home ownership is commonly referred to as The American Dream .

At the forefront of our new mortgage market generation is the Automatic Rate Cut (ARC) mortgage. What separates ARC from the normal fixed rate loan is that at any time interest rates drop more than 1/4%, the loan is recast at the lower rate automatically and never goes back up. Refinancing a traditional mortgage creates a new loan and the amortization starts over at year one. The ARC loan does not and there is no closing cost when it adjusts. Visit http://www.arc-mortgage.com for more informatio

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