Do you want to invest in Spain but you are afraid that you will put your savings wrong and the purchase will not bring you the expected profit? Find out what to look for to avoid this.
Spain is still attractive to foreign investors and according to forecasts for the Spanish real estate market for 2019, this situation will not change. However, it should be remembered that the Spanish real estate market is governed by slightly different laws than the Polish one, which is why investments should be made with care and proper preparation. Safe investing abroad is above all a meticulous calculation of all "for" and "against" the available offers and finding among them a compromise that has a chance to bring us a profit.
The decision to buy a house or apartment in Spain requires careful consideration of aspects such as:
Our investment goal should set the direction for the entire property purchase process. Depending on whether we intend to invest in a holiday home for personal use only, or an apartment for tourist rent or we are looking for a permanent home, other factors will have to be taken into account.
The preferred location, area or number of bedrooms in the house or apartment will vary depending on the investment objective chosen. For example, an idyllic cottage on the outskirts of the Spanish countryside, located relatively far from the most popular tourist resorts, is a good solution if you are looking for a quiet place for a family holiday home. However, when buying a property for rent, this decision may turn out to be wrong - tourists are more likely to rent holiday apartments located in or near popular resorts, where they have access to a huge number of attractions, sandy beaches and city entertainment.
Our investment goal also determines the type of real estate. Buying an apartment with 1-2 bedrooms is a good solution if you want to earn on short-term rental in the summer. On the other hand, large-area properties with more bedrooms and amenities such as a spacious terrace, swimming pool or garage can facilitate their resale at an attractive price.
When looking for a home permanently, we should also focus on a sufficiently large area, comfortable housing, but also a convenient location - in such a situation, closeness, among others, is particularly important. shops, hospitals, schools and convenient communication between our future residence and the rest of the city.
If you are considering buying a property in Spain for business purposes, its location will definitely be of the utmost importance. In this case, investment in less popular locations that are not too promoted and attractive to tourists will not be a viable solution. Large resorts are admittedly higher property prices, but also a better chance of a faster return on invested capital. For example, from the investor's point of view, it may be profitable to buy real estate in Torrevieja, Calp or Benidorm. We encourage you to familiarize yourself with sample offers:
Before buying a property, you should also familiarize yourself with the immediate surroundings of the property - location in the entertainment center of the city, near restaurants and clubs may be desirable for some tourists and ensure a great interest in your rental offer. However, if you are looking for a holiday home in a quieter area for your own personal use, it may be better to buy a property on the outskirts of the city.
When choosing a place for investment, it is also worth considering future spatial development plans for the location of interest to us. In this way, we can avoid saving money incorrectly and the situation when our rental offer turns out to be much less attractive than we initially assumed. For example, if you buy a house in a quiet area, you want it to stay that way, right? And what if the construction of a large shopping center and new roads is planned there in the near future? Just among others you can get this information by familiarizing yourself with spatial development plans at an early enough stage.
Ignorance of the Spanish real estate market sometimes puts foreign investors in an unprofitable position. To be sure that the purchase of the property you are interested in will be completely safe, legal and in the future we will not be forced to incur additional costs, it is worth seeking advice from a Spanish-speaking lawyer or real estate agent.
Before buying a property, it is recommended to verify the following:
Particular caution should also be exercised in matters related to formalities. It is worth being aware that the documents needed to finalize the purchase / sale of real estate should be translated into our language - until this happens, we should not sign any contract that binds us.
Before making a decision to buy a property, be sure to verify its technical condition and check that what the offer photos are true. Defects that we discover after purchase will be an additional cost for us, which we could avoid by conducting a thorough reconnaissance.
Due to attractive financial conditions, some investors decide to buy real estate for renovation in Spain - in this situation, you need to make sure that the price corresponds to the current technical condition of the specific house or apartment. If it is not low enough, the purchase may not be profitable if we add the costs of a major renovation.
People investing for profit, before buying, should calculate its profitability. To this end, we must consider:
We encourage future investors to familiarize themselves with the sample calculation of apartment purchase in Spain.
Investors buying real estate in Spain usually decide to finance it with a mortgage. In this way, we can cover the purchase costs up to 50-70%. The offers of individual banks differ from each other, however, by opting for this method of financing real estate, in many cases we can spread the loan repayment over an average of 5-25 years.
A long loan period is another argument that the purchase of real estate must be really thought through and your financial capabilities should be analyzed in terms of paying off subsequent loan installments. If you decide to buy a home on the spur of the moment, you may find that your monthly installments overcharge your budget and you will need to resell your property.
At the stage of applying for financing, it is worth using the help of specialists from the Spanish real estate market - in this way your chances for more attractive loan terms have increased. We offer future investors our assistance in completing the necessary documents and finding the best mortgage offer in Spain.
Remember, rush is a bad adviser. Before buying property in Spain, spend as much time as you need to thoroughly verify all of the above-mentioned issues. If you want to avoid potential risk and be sure that the entire purchase process is legal, contact our specialists - we will find an offer tailored to your investment goal and help you obtain financing for the purchase of real estate.