Top Tips for buying property in Spain
If you are thinking of investing in real estate, our first recommendation is that you should not be in a hurry and take your time to inform yourself and so decide carefully and consciously.
The business of buying and selling property in Spain, and more specifically on the Costa Blanca, has taken a run after almost a decade of recession and the volume of business begins to stabilize after the last few years.
Throughout 2019 the construction and real estate sector will continue to grow , and forecasts point to an increase in prices from the second half of 2019. To date, real estate investment has increased by 46%, due to the fact that the Spanish market is very active and has very competitive prices. Inday Homes' experience in intermediation services reduces this risk of price escalation.
Below we explain the five factors that Inday Homes values in order to find your perfect real estate investment that suits your interests and financial objectives.
Study the location of the property
Although the importance of location may seem obvious, too often it is not given adequate attention or analysed correctly.
Simply assessing whether or not a city is attractive for real estate investment is a more frequent mistake than desirable; a good location analysis is characterised by being as narrow as possible.
That Costa Blanca has a great attraction for real estate investment is a reality: however, it would be a mistake to look for investments without delving deeper into the analysis.
Future plans: revaluation
One of the factors linked to location that must be taken into account when deciding on a real estate investment opportunity are the revaluation plans of the area where the property is located. Expanding residential areas and university areas, for example, are among the safest assets, closely followed by beach areas, where second homes predominate.
Cities are in constant transformation and it is as important to know their current situation as the past in order to assess their future as well. In this sense, each investor must be aware of their profile, their knowledge and limitations, and act accordingly, informing themselves on their own or seeking professional advice. If you opt for the second option, our advice is to turn to an independent advisor, that is, not linked to entities with their own interests, such as banks and traditional real estate.
Area, market and type of investment: three factors together
Once you have studied the area in which the property you are interested in is located, you must contrast these conclusions with the market and the type of investment. By itself, the location is not a guarantee of profitability or success: it is necessary to study the current market situation and, above all, to analyse whether the type of investment is suitable for the area where it is located. For example, a commercial premises is a good bet in big cities, while it will not be so good in coastal areas, where the best option are the houses destined to tourist renting with current yields of between 6% and 7%.
Values all real estate investment options
The real estate investment market is changing by leaps and bounds, especially thanks to the application of new technologies, which has led to the emergence of the so-called proptech, real estate companies that use the possibilities of technology to offer new products and services.
Investing in real estate has ceased to be synonymous, therefore, with acquiring houses from a real estate company individually for subsequent leasing. One of the alternatives that has appeared in recent years and which is gaining more and more strength are the purchase and investment platforms or Real Estate Personal Shopper, which allow one or more real estate investments to be made at the same time.
We all like luxury, but when we talk about real estate investments, it is important to leave personal tastes and desires aside. If the time comes when we have to choose between luxury and habitability -especially when we talk about housing-, the latter must always be prioritized if we want greater security and profitability in our investment.
Location, revaluation plans, types and options of investment and habitability: these are the five main factors to take into account when valuing an investment opportunity in real estate. We end with an extra piece of advice that we should always keep in mind: it is better to be accompanied by an investment than to enter with haste and ignorance.