According to real estate experts, the time to acquire an investment property in Spain is now. Although demand in Spanish property for sale fell following the 2008 recession, the recent robust global economy has boosted the market once again.
According to the National Institute of Statistics (INE), the number of transactions increased by 11% year over year from January to November 2018, bringing total year sales to 481,220. According to registradores, the share of international purchasers has increased significantly, now accounting for over 14% of transactions compared to only 4% in 2009.
By taking advantage of this buying opportunity, investors are diversifying their portfolio and generating big value and profit in this niche. So, how do you as a newcomer tap into this pool of wealth?
1. Appraise Yourself of The Country’s Regulation
Residents who buy a home in a Spanish community are usually obliged to obey certain rules. Those limits may pose problems for real estate investors, as well, because if you want to upgrade or modify your acquisition, you may have to wade through a pile of red tape before you can shape it the way you want.
Even after you've finished sprucing up the house, make sure the purchasers understand the restrictions they'll be bound by, since they'll be required to observe them for the duration of their ownership.
2. Crosscheck for Hidden Costs
It is critical that you try to obtain that extra information tip before purchasing an investment property. Everything from the property's estimated tax rate to regulation fees should be known. Don't let any unexpected expenses cost you thousands of dollars when you try to sell your home.
Don't forget that hidden costs might cause a deal to fall through. It may take some time to develop a complete picture, but you want to provide a potential buyer a clear picture of what living in that place will cost them in the long run.