One of the most challenging aspects of property investment is timing your purchase decision. Should you dive in right now or sit tight for the time being? As the last couple of years have confirmed beyond any doubt, no one has a glass ball – who could have predicted the pandemic and subsequence confinements and travel restrictions?

But while we can’t predict future events with absolute confidence, certain factors can help you decide when to invest. This article offers ten things to consider when you’re wondering whether now is the right time to buy on the Costa del Sol.

Property prices always go up

A strong argument for buying now lies in the history of property prices. Markets obviously experience ups and downs but take a look at any property price timeline and you’ll see that the underlying tendency is always up. That said, buying when prices are still low makes compelling financial sense.

As the graphic below shows, Costa del Sol prices currently lie well below their Q1 2007 peak.

Property taxes can fluctuate

Every so often, governments offer tax breaks for property buyers. The Costa del Sol is currently experiencing one of those moments – the regional authorities recently slashed transfer tax on resale properties from 8-10% to a flat rate of 7%. This translates to huge savings, particularly if you’re buying at the higher end of the market. In addition, stamp duty on new-build purchases also went down. This tax break was originally due to expire at the end of this year, but has now been extended indefinitely, which will help boost the market.

Market trends

The latest tendencies in prices and sales provide another useful tool in helping you decide when to buy on the Costa del Sol. So far in 2021, this part of Spain has seen a solid uptick in sales as pent-up demand floods the market and steady increases in prices. Based on the figures, we’re forecasting more of the same for the rest of the year.

Get the latest market report for the Costa del Sol.

Your motivation

Deciding when is the right moment will also depend on why you’re buying. If you want to move to or invest in the Costa del Sol in the short term, there’s no time like the present (and you’ll save on property taxes if you buy before 31 December!).

If, on the other hand, there’s no real urgency, then you can bide your time. But while you’re waiting, don’t forget that the property market in many parts of the Costa del Sol, particularly the west end, is moving up.

Your requirements

Another factor to consider is what you want in a property. If you find a home that ticks all your boxes including your budget, then buy it now. Finding the same fit could be impossible in a few months’ time.

Expert advice

Listen to those who know the market and take their advice. To ensure you get the best, choose a well-established estate agent with years of experience in the area you like on the Costa del Sol. Ask for a considered opinion on the timing of a purchase and take it on board.

The long-term picture

Back-to-back sales were commonplace in the frenzied market on the Costa del Sol in the 2000s. But those days are over and in any case, the best property investment is always long-term. Remember that taxes and fees add at least 8% to the price of a home on the Costa del Sol so you need to think medium to long term to recuperate the investment.

Population patterns

Demographics condition demand for property and in places with a regular influx of new residents, push prices up. According to recent research, over 56,000 new residents have arrived on the Costa del Sol in the last five years, around 1,000 a month.

The seller’s need

How keen the seller is will also influence your decision to buy now or wait for later. If you’re prepared to buy quickly, a vendor who needs to get the property off the market may be more open to price negotiations. Your estate agent will know so ask for advice.

The perfect time?

While timing is the essence of so much in life, you could also argue that the perfect time is always when you feel it’s right. And if the pandemic has taught us anything, it’s that life is for living and now.

Convinced that now the right time for you to buy on the Costa del Sol? Get in touch with us and we’ll find the home that will move you, especially when it come to property for sale in Sotogrande, which we specialise in.