Lanzarote Villas - Ideal Holiday Home Investments

The financial sector has not been giving investors a significant return on there

savings for many years now and the prognosis for the foreseeable future does not seem too buoyant either. And even though the rate of inflation remains low with the rises in indirect taxation and other living expenses not tracked in the RPI increasing this is continuing to squeeze the incomes of those relying in whole or part on the interest or dividends from their savings.

Holiday homes abroad are popular form of ongoing investment so let's take a look at Lanzarote in the Canaries. As here investors can enjoy a year round rental calendar thanks to the islands incredibly clement climate as well as a robust tourist industry that is starting to bounce back from the economic crisis of last year, when Lanzarote still managed to welcome close to 1.4 million visitors.

Lanzarote, which is located in the Canarian archipelago, is an ideal location for anyone thinking about buying a holiday rental property. Thanks to the fact that the all year round level of sunshine and little in the way of rainfall. Which translates into a full 12 months worth of rental returns for investors, as the season here never really stops unlike other parts of Spain

Lanzarote villas can not only give you a rental return though, as you will be able use your investment property yourself if you take regular annual breaks. Using your own property can help you save a significant amount of money that would otherwise be used to pay for holiday accommodation elsewhere, a fact that is often overlooked when calculation returns form holiday property investment.

Despite being owned by Spain Lanzarote and the other six Canary Islands are situated much closer to Africa, just off the continent's west coast and close to the Tropic of Cancer. As a result rainfall here is minimal whilst temperatures remain spring like all year round. Conditions which have created a vibrant tourist industry, with the Canaries being the second most visited region in Spain after Catalonia.

Lanzarote was not left unscathed however by the recent downturn - as visitor numbers here dropped just as they did across the rest of Spain. Thanks to the resulting depreciation of sterling against the euro and the general fall in consumer confidence created by the crisis. Resulting in a sharp drop in the number of people booking holidays in Lanzarote during 2009.

Traditionally the Lanzarote property market has been powered by investment from the UK. As foreign buyers have bought up apartments and villas in Lanzarote to rent out to their fellow countrymen. And despite the downturn the island still remains an attractive investment option. Not least as returns from savings and shares in the UK remain low, whilst property prices on the island have fallen considerably over the last year. With some villas in Playa Blanca, Lanzarotes fastest growing resort, now selling for under 200,000 for the first time.

As well as a reliable tourist industry and great weather Lanzarote also offers holidaymakers plenty of attractions and activities. Factors which have helped to maintain the island's ongoing popularity which is very important for long term rental investments. These include an array of natural wonders, such as the verdant Valley of 1000 Palms in the north of the island. And the number one tourist attraction of the Timanfaya Volcano Park - where visitors can gaze in awe at over 300 now dormant peaks.

There are also close to 100 beaches to explore along with some very pretty little villages such as Haria and Yaiza. And with car hire in Lanzarote so cheap this unique little island is easy to tour.

The fairly unique blend of Sun Sea and culture also ensures that the demographic of visitors is also diverse making the Island a popular destination for all age groups as well as retired visitors looking for long term winter rentals.

by: Dave Talbot

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