Just as important when it comes to making the most of your money is asking yourself if it’s time to invest in a home or not. When is the best time to buy an apartment? While spring is a good time to put your apartment up for sale (with the arrival of good weather the interest in looking for a house is reactivated), the search for rental homes increases when you return from vacation. Take these periods into account when selling or renting your property and normally it takes less time to place it. Now that the non-Spanish citizens can buy properties thanks to the residencygolden visa you can have the best deals. This is the part of the immigrant investment program that you can go for.
Study the revaluation of housing
It is necessary to analyze the area to determine the habits of its neighbors, if there is more demand for rent or sale; if they are mainly owners or rented; etc. On the other hand, you should study the evolution of prices in that area in recent years: has the sale price risen? And the rental price? Also review the neighborhood’s growth plans, as it can make it quickly appreciate: is there a plan to build a large shopping center, a green area, and a subway line?
Keep in mind that if it is an area with a lot of demand, the price of the house will be more expensive and there arefewer margins to negotiate the purchase price. Evaluate if there is enough demand for the rental in that area or look for another where the acquisition price is not so expensive.
Calculate housing expenses
- Another tip to invest in homes that you should keep in mind: all the expenses related to it. First of all, acquiring a property is not only paying its price, there are also the expenses of buying a new home in 2020. You must take them into account to calculate their total price and the profitability of the operation. The home investor often buys cash and properties with a price that is perfect. Based on this value, you must calculate taxes, such as VAT on new housing, Property Transfer Tax (if the property is second-hand), etc.
- To all these acquisition costs you must add others that will also condition the profitability of your investment in new housing. We are talking about the additional payments that you will have to pay regularly after the purchase: purchase of furniture, taxes (IBI, etc.), and community expenses. An apartment with an attractive price can become poisoned candy if, for example, you have some expenses very high community.
- Another important detail: if you finance the purchase with a mortgage you must assess that the rental income covers the mortgage payment to verify that it is a good investment.
Reform the house
The state of the house influences the rent. If you buy an old-fashioned second-hand home, you will have more difficulty finding a tenant than with a new or in good condition. Consider reforming the house: improvements made to a house in poor condition can increase the rent by between 20 and 30%. He calculates that the average budget that owners spend on updating a home is between 4,000 and 5,000 euros. The advantage is that if you carry out the basic painting, flooring, bathroom and kitchen updates, you will be able to rent faster.