It’s true that Eurozone interest rates are extraordinarily low, and depending on your credit score, you can now get fantastic fixed-rate deals around 2.5% for 10 or more years. It’s worth going for a fixed rate as you remove the risk of rising rates, which must happen eventually, and 2.5% is amazingly cheap for a fixed rate.
It’s also true that Spanish property prices have bombed since the bubble burst, on average down more than 40%, and as much as 70% in some places. Factor in the strong pound and it all looks rather interesting for a British investor.
If you are looking for a second-home to rent out part time, and can afford to buy what you want, then the idea has merit.
However, if it’s pure investment, I’m not a big fan of cross-border buy-to-let. Too complicated. I think you are better off buying something local to where you live. Much easier to understand and keep an eye on.
Also, Spanish transaction costs are a big hurdle for investment returns. With the possible exception of the Canaries, they are much higher than the UK.
That said, I would think twice about buying in London today, though who can afford it anyway? UBS just published a report saying London and Hong Kong are in bubble land.
The rest of the UK might be okay though. There are just too many people and too few homes, the laws of supply and demand suggest rising rents and prices. That’s not the case in Spain.
Have found a property with a good yield and a reliable long-term tenant? If so where in Spain?