Hi
I would tend to agree with Rainyday and not believe too much the agents say. However, that said people are making money from flipping properties there. Investing using this strategy is akin to betting on the Spanish property market and particularly the local regions that you mention. Perhaps some form of hedging may be apt to reduce your risk. It is a confidence thing and as long as investors believe the trend is upwards and lifestyle buyers believe they are getting value for money then you are likely to be okay. As you mentioned the Costa del Sol is seeing a stabilisation of prices and hence flipping is not as easy as it once was there. In fact I would say that for the average investor not familiar with the area, it is quiet risky. I think that Costa Almeria & Costa Calida will continue to see gains. A number of issues with this strategy are:
1) A large deposit (i.e. 30-40%) is usually required to book a unit
2) Despite what agents might say, you should pay CGT on any gain achieved when you sell
3) Despite what agents might say, the local tax authorities are targetting people who do not cough up the tax
4) If you refuse to close on the sale (due to not being able to sell prior to completion), you are likely to forfeit your deposit
5) If you close the sale, the rental markets are usually more challenging that agents would have you believe
6) Estate agents will not be so interested in selling resale units as new units due to lower commission rates
7) Estate agents are likely to look for up to 7.5% commission to re-sell your unit
8) Not all contracts allow you to sell prior to completion - get a legal expert to check the terms carefully
Regards,
Paidi