Is it a good idea to invest in Spain now?
Have you been dreaming of a holiday home in Spain for a long time?
And do you browse the internet and the real estate websites a lot?
So you often see them say that it is now is the time to attack because:
- Money is cheap.
- Corona drops prices considerably
- Buying to rent is a good plan
But that’s how it is? Are those statements correct?
1.Money is cheap.
Borrowing money can be very cheap nowadays. That’s how it is.
But that isn’t the reason to buy now because it’s not rocket science if I tell you that
money will be cheap for a long time.
2. Real estate prices in Spain are falling considerably due to the coronavirus
I am not going to deny that prices are under pressure in some places in Spain. But it is not true that the cause is corona.
And it’s still a bit crazy that everyone thinks that prices in Spain are going to fall seriously and at the same time we see that prices in Belgium and Holland are through the roof;
It is true that prices in some parts of Spain have been under additional pressure since the summer holidays last year.
The reason for this is the too large supply of newly built properties in certain places and the too rapid increase in the price of existing outdated villas and apartments in the last 3 years.
So the crown creates some extra pressure, but there’s really no drop.
3. Buying to rent is a good plan
To rent or not to rent. The million dollar question that we already talked about in a previous column.
Be realistic about your rental yield. The annual net income yield today is usually between 1.5 and 2.5 percent.
Average 10 to 12 weeks rental, that’s what you can expect from a rental office in the Coasts. Rent yourself, if you are a crack with social networks, you can do more than 12 weeks.
So why should you invest now?
My advice always remains, only invest when you are ready. Does it fit into your life now and do you have the money for it? Let’s go!
If not, prepare well in the meantime. Make sure you pay as much or even more attention to the environment than to the property.
There are a lot of buildings. But you only become happy in an environment where you feel good.
See you soon