I am considering investing in a Spanish property to let in a tourist area. I would be interested to know what people would consider are the risk factors. Here are some:
- Anti-foreign sentiment in Spain resulting in higher taxes on foreign investors? Is this likely? What is general sentiment amongst Spanish as regards foreigners buying properties?
- Political risks. Eg a political shift to the left could result in higher property taxes? But does membership of EC provide some protection against this?
- Interest rates rise? How likely is this over next five years?
- Tough rental market? We would need some income from the property while we pay it off. I assume people are still going on holidays? Anyone any experience of the Spanish property letting market - around Marbella.
- Legal. How arcane or otherwise is Spanish legal system?
Any other risks or considerations I have missed?