Increasing numbers of Spaniards approaching retirement are buying second homes on the coast as part of their retirement plans, claims Alfa Inmobiliaria, a franchise chain of estate agents in Spain.
10 per cent of buyers are now using second homes in coastal areas as a way to save for retirement, claim Alfa.
Derisory returns on bank deposits, and cheap homes on the coast that have fallen by as much as fifty per cent in price are encouraging Spaniards to look at second homes as good investments for retirement years.
Many Spaniards can no longer look forward to comfortable retirements with generous pensions, and need take steps to boost their income potential after the stop working. “And this is even more so nowadays,” says Jesús Duque, vice-president of Alfa Inmobiliaria, “when grandparents have in many cases become providers for their children and grandchildren.”
Local investors planning for retirement have different requirements to the typical second-home buyer. Amenities and convenience are more important than access to the beach.
“Until recently, the traditional buyer on the coast wanted the property to be frontline beach, “Duque claims. “Nowadays, many people want to be in the centre of the locality, near health services, shopping and leisure centres, with good public transport connections, etc.”
This new kind of buyer is looking for a property to move to when they retire, and where they can maintain their lifestyle making the most of advantages such as good location (usually on the Mediterranean coast), with plenty of properties to choose from, and prices half what they were six years ago.
They tend to be bargain-hunting cash buyers who have typically paid off the mortgage on their family home, which they plan to let when they retire. The goal is to downsize to a cheaper location with a better climate, and boost pensions with some rental income.
Alfa go as far as to suggest this trend could make second homes on the coast a good investment. Although the second home market on the coast have been one of the hardest hit by the crisis, Alfa expect prices to rise by around 10 per cent in the next few years.