December 4, 2010

With interest rates low, turmoil in the global banking system and very volatile money markets it is becoming a bit of a challenge trying to decide what to do with your hard earned nest egg, especially if you are planning for your retirement so what other options are available?

Bricks and mortar has always been a sensible investment but have you thought of investing in the Lanzarote property market.

The Canary Islands enjoy one of the most enviable climates in the world thanks to their location off the West African coast of Morocco (although they are in fact owned by Spain), so a distinct advantage over other European destinations. Additionally whilst they are just a four hour flight from the UK they are another world in weather wise,as the temperature here averages out at 22 Celsius all year round and sun shines here when the rest of Europe is deep in snow.

Many buyers are just on the lookout for a destination that offers great rental potential and Lanzarote delivers on this front too as the island boasts a stable holiday industry and a year round rental calendar, rather than the shorter season prevalent on the European mainland.So how much can you earn if you own a holiday rental property here?  Holiday villas and apartments on Lanzarote are in constant demand – and larger properties with private pools are rented out for up to €1000 per week during the peak holiday seasons.

As a result of the credit crisis and the recession investors can secure some real bargains on Lanzarote at the moment as prices have fallen considerably here over the last year or so.

Property in Playa Blanca currently offers the best value for money – reflecting the fact that prices here have fallen more sharply than elsewhere on the island, thanks to an oversupply of property.  With villas with pools now available for below €200,000. So if you feel you would like to have a holiday home and bag an investment property into the bargain now would be a sensible time to make the jump.