The ultimate guide to buying a property in Spain
In 2015, in Spain more than 400,000 homes were sold, the highest value since 2010. According to the Ministry of public works, the sale of homes grew 9.8% during 2015, to add 401.281 units, with a chain two consecutive years of increases. And the pressures for 2016 are also good, but always have property lawyers on your side. BBVA Research estimates that investment in construction will rise in Spain, 3.8% in 2016 and 5.9% by 2017.
Maybe it’s a good time to buy a home, not as housing but as an investment. For those who are thought of in this latter, the General Council of the Colleges of real Estate Agents has published a number of recommendations to take into account when purchasing a property. These are the main factors that we must consider when making a real estate investment.
Factors to be taken into account
Supply and demand: If you’re looking for profitability, you have to take into account the supply and demand of your city. Invest in residential housing tends to be more profitable in smaller cities. On the contrary, the investment in commercial premises or offices is a more attractive option in large cities.
Trends in the market: Keep in mind the market trends when choosing a property. For example, according to Fotocasa, Toledo, Ciudad Real and Lleida are the capitals of the provinces where there is a larger downward trend in the price of the square meter in December of 2015.
Location: According to real estate agents, the property’s location is key when investing with success. Factors such as the public transport connections, green areas, proximity of shops or educational institutions will make it easier to rent or sell that home. We must value if we want to make an investment in the short or long term
Rental, sale, renovation: you have to study the demand for rental or purchase that exists in the area. We also need to assess if we want to make an investment in the short-or long-term. In addition, in the case of acquiring a second-hand housing, you should assess the cost of the reform.
The state of housing: A home in a good state, fully equipped and with a good orientation is more likely to be rented or sold. It also affects the neighborhood, number of bedrooms, the age of the farm or the availability of a lift and/or garage.
Buy to rent: Buy a property today to put it after to rent is a very attractive option for small and medium-sized buyers. It is necessary to warn that, although the housing market is in a situation of high profitability, low risk and mortgage loans on advantageous terms due to low interest rates, it is important to assess well the investment and to consult with experts in the sector to avoid unnecessary risks.