In Spain, and especially in Mallorca, the number of property sales has increased by 32% over the past year accounting for the movement of around 98 million Euros. The properties with the highest demand are luxury homes, especially in the south-west of the island and in the capital, Palma de Mallorca. Meanwhile, Palma has become the fifth most expensive city in Spain; both for the sale and rental of properties. If you are thinking of investing in Mallorca, at Heinsbroek Real Estate Boutique in Pollensa we recommend investing in a luxury property in Mallorca. In this blog post we are going to explain why we think you should invest in a home and we are going to give you some tips to keep in mind before making a purchase.
The value of your investment in Mallorca will remain constant over the years
Property assets, like gold, have always been the most traditional ways to make an investment, simply because they are not affected by currency fluctuations - unlike bank savings which are currently going through a significant crisis and which hardly provide any return. Over the years properties tend to maintain their value and increase in value considerably, and luxury homes do so even more, as they are more likely to be revalued. Even though the real estate market in general can get stuck, luxury properties are always in great demand. In other words, in one way or another, buying a luxury home in a place like Mallorca is one of the safest and most profitable ways to invest your money.
Facilities at your luxury home in Mallorca: a sign of prestige
The next reason why we recommend buying a luxury house in Mallorca, also includes the first bit of advice to keep in mind when it comes to choosing your future dream home. What makes a luxury property luxurious? One of the most important factors is of course the comfort and quality of its facilities. A luxury property offers comfort of the very highest standards: an indoor or outdoor pool, a private gym, a large garden, cutting-edge home-automation systems, as well as security systems - these are all important factors when it comes to deciding which property to buy, but they also make for the perfect surroundings for you to enjoy your home with your family or for relaxing during your holidays. In summary, we could say that a luxury home in Mallorca must be exclusive, attractive and unique in every sense of the word.
Identify your investment objectives before buying a luxury property
One of the most common objectives when it comes to buying a luxury villa in Mallorca is of course, to live in it, either permanently or as a second-home. But the real estate market for luxury property offers many other possibilities:
You can buy a property at a great price to later obtain excellent profit when you have it revalued. Another interesting option is renting the house over the season to holidaymakers, and this gives very high and consistent income. And thirdly, you could purchase a plot of land and build your house from scratch and according to your own tastes. This guarantees the best profits in the future if you decide to sell your property once it is complete.
Choose the best way to finance your luxury property purchase in Mallorca
If you have a good financial buffer which allows you to invest in Mallorca without the need for support from a bank, this is certainly the easiest way to go about things. However, even if you do have this option, it is always interesting to investigate the options and margins available to you if you take out a mortgage. There are short-term mortgages for which you have to return the money in a short period of time, and these have lower interest rates and charges than a traditional mortgage. These are a very good option if you want to invest in a property to refurbish and sell in the short-term without having to invest a great deal of your own capital.
The correct location and market for your investment in Mallorca
Apart from the facilities, equipment and comfort, a luxury home is also defined by its location, and let's be honest, Mallorca is an unbeatable place with dream locations. This is why we are sure that you will have no problem finding the perfect environment for your investment; in general, there are two categories which dominate the luxury real estate market. The first is an excellent location which is very central and close to all services and facilities. The second, and this category is gaining popularity all the time, is exceptional locations surrounded by lush nature, and blessed with spectacular views. Whichever location you prefer, in the luxury real estate market it is very important to know everything about the location in question and this is why we recommend counting on the services of our real estate agency in Pollensa, because we are experts in the region and we specialise in the luxury property market in Mallorca. We advise you on all aspects of the process - whether you want to invest in Mallorca in order to achieve the highest returns or whether you are looking for a luxury property to be the perfect home for your family.