Housing is trending again, the real estate sector is recovering its grow, more and more homes are being sold and prices are rising sharply, which is why property investment is a great way to invest.
Foreign investment in real estate is becoming increasingly frequent in Spain and it is mainly driven by the climate, quality of life, suitable flight connections, gastronomy, affordable prices, medical coverage and the quality of the service industry.
These are five ways to invest in Spain’s real estate sector with very little money:
– Buy off-plan property
The new construction segment has been reactivated and we are once again seeing developments, though this time they are lead by financially sound construction companies utilising their own funds to finance the project and often with banks owning the land.
There are flats at appealing prices, which due to the rise in the demand have already been reappraised by the time that the property is finished and the deed is written up.
Currently, the new construction developments being built are quality housing with great design, generous dimensions, enjoyable layouts, and noble materials. These are usually being built in central or residential areas and it all adds up to guarantee revaluation.
– Buying second-hand properties to rent
The price of new construction properties has risen while the drop in the housing prices during the crisis have allowed one to buy second – hand properties at reasonable prices that make your investment attractive.
It is common to look for flats at a low price in a good location and then refurbish them.
With the cost of new construction properties, it can be more affordable to buy flats to renovate, which would then result in higher gains from rentals.
This also applies to retail space and offices; many businesses closed during the crisis and left a large supply of unoccupied commercial properties.
– Invest in real estate in Spain, without actually buying property, through a SOCIMI
The Real Estate Investment Trusts (“SOCIMI” in Spain) are the stock market’s alternative for anyone to afford to invest in real estate.
These are dedicated to the rental of any type of property, property purchases and sales, and investment in various real estate assets. They enjoy tax benefits.
After the real estate crisis, this type of asset has become the perfect vehicle to participate in the wave of property investments, which to some extent reflects the economic recovery in Spain.
By requiring a low entry capital for investment, SOCIMIs allow access to investments in buildings or properties, which would otherwise be inaccessible for the pocket of some individuals.
– Invest in online real estate investor communities
New real estate investment intermediaries have emerged, such as the online real estate investment communities.
This is a true democratization of real estate investment, allowing anyone to invest without risk, within markets where diversification was restricted to large capital holders.
– Property investment in Spain with real estate investment funds
This system is a sort of indirect real estate investment that operates as a traditional investment fund. With a very small amount of money one may buy shares in a basket of real estate assets chosen by a manager and a team of professional analysts.
If you are interested in investing in real estate in Spain, contact us for advice.