The current real estate market in Valencia city offers many investment opportunities that, if well examined, could generate an interesting return.
One can’t just look at the relationship between the sales price and the potential lease rent. If you are considering allocating your savings to the “brick”, these five tips from the real estate website pisos.com will help you choose a home with which you can make a profit:
1. Preliminary selection – Filtering the offer is essential to locating the most attractive products. Not only should you use the real estate sites, but also turn to one local agent of trust who will represent you. Surely, with one representative you will avoid expensive mistakes and getting trapped with a “toxic” property.
It is crucial to compare the prices of houses with similar characteristics in a particular area. Stick with those that have a price that matches their real value and discard those that are overpriced.
2. Preservation status – New and well-serviced homes are easy to rent. The bad news is that the offering is very limited and expensive in cities, which is why investors opt for pre-owned properties. The state of these properties is not always the most desirable, so the cost of renovation must be added to the sales price. Keep in mind the extra investment that you will have to make to get the house move-in ready and consider if it is worth it.
3. Good location – The centers of the most dynamic cities are priced upwards. These are conservative investments in which the rent is ensured. The other side of the coin is that, as there is little risk, the return is trimmed. On the outskirts, housing will be more affordable and yields more substantial. Considering that demand for rentals are rising and tenants are expanding their search radius, it could be a good decision to buy in these further away locations.
4. Size – The size of the house also influences the return on the property. If we are considering selling it later, a house of about 90 square meters and three bedrooms is where most of the purchase demand is focused. As for renting, the apartments of about 60 square meters with two bedrooms are perfect for tenants who want to live in Valencia. Three bedroom apartments are also a good investment.
5. Financial effort – Although it is possible to finance the purchase of a home as an investment, it is not the most advisable. Professional investors pay cash, but it is difficult for the small investor to have enough savings to cover the selling price and all of the incidental expenses. If you have to resort to a mortgage, you have to do it for a minimum rate. Profit would vanish if we lose the tenant, as our financial situation would be compromised.
If you are looking for inventing in Valencia, feel free to contact The Spanish Brick in order to get the right support.
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