By Euro Weekly News Media •
Published: 03 Jan 2019 • 13:15
HEALTHY PROFITS: Can be achieved from purchasing property.
MANY people purchase property as an investment, and whether buying to reform and sell on or to rent out, there are pros and cons to each.
Real estate website Casktua has put together a guide for anyone hoping to make money from Spain’s booming property market. It says the first priority is to weigh up the advantages of buying to rent or buying to sell.
The site says rental properties have the advantage of a, “fixed monthly income and an ownership of a home which may go up in value.” Casaktua says this option also contains the benefit of possible holiday rentals, a potentially lucrative move which would free up the property for you to use.
The site says buying a home to sell if on could offer a lower financial risk if it is sold for profit, and also offers larger profits in the short-term.
Once you know what you plan to do with the property, you can choose a home best-suited to your requirements. Casaktua says: “Furnished houses with one or two bedrooms are ideal for short-term rentals, such as vacation rentals.” Whereas, for a longer-term rental income, “the best option is to bet on well-distributed homes, with two or three bedrooms, external space and with a lift and garage.”
As with most property decisions, location is everything, and Casaktua advises that if you intend to sell your property on, the best cities to buy in are Madrid and Barcelona, “where the market is more dynamic.” The site also says, “since housing is not rising evenly, it is also worth betting on capitals such as Santa Cruz de Tenerife, Palma de Mallorca, Valencia, Malaga, Alicante, Pamplona, Guipuzcoa or Murcia.”
For holiday rentals, the Costa del Sol is also suggested as a good option because of, “the demand for second homes in beach areas and the proliferation of holiday rentals.”
The site also recommends investing in property near services, and with good communication links. It says: “It is also a good idea to bet on large business centres or university areas, as they will always have demand.” Properties to be rented out will also need to be in good condition, according to Casaktua, while reform properties should be priced low enough to still make money after paying for works.
Finally, the site suggests calculating your profit margins of any potential home by adding the purchase price, taxes, operating expenses and reform costs, and weighing these against any possible gains.
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