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How to start investing in the Spanish real estate market?
Last Updated on: May 12th, 2023
A lot has been published on the various indices of the Spanish real estate market, the potentials, earnings over the years, the high grossing areas, etc.; you can Read more on the official website Spain-Real Estate.
You have read all of the juicy posts about the Spanish real estate market and are now wondering where and how to go about your investment. This blog is a guide on steps to take to avoid common potholes and mistakes and to make your journey easier and more seamless.
Where to get properties and listings in the Spanish real estate market
You can get all kinds of listings and properties from this aggregator website, containing properties in the market from all developers and all locations in the country. You can buy three-bedroom flats in Spain in a few clicks as you read this. More important is to exercise ordinary contractual skills and be diligent with your purchase. You will find some recommendations on how to go about a problem-free purchase in Spanish real estate generally.
How to invest in the Spanish housing market
Certain easy steps will help you make a quality decision in the Spanish housing market.
Research and decide your intentions
The first step would be to research the market and decide why you are considering an investment in the country. Although this sounds elusive at first glance, answering the ?why,? question will determine everything else. For example, if you decide you want to buy for commercial purposes for residence, it will determine your location, the property type, the strategy, etc.
So, ask yourself why you want to invest, and write down your three motives hierarchically. Then apply the remaining steps underneath to achieve those hierarchical needs in the order of preference. For example, if your motive is to make money, you should target commercial investment in an area with high demands (these are often more expensive); if it is to have a property for use and rent after that, (you can consider unique factors of suburbs and targeting your desired customers).
Pick a location and property type
After deciding why you want to venture into the market, the next major question is to decide what property type best suits your intentions and what locations best fit your plans. There is virtually no property type you want that you cannot find in Spain.
The market is so vast, with a variety of options. The most common and popular cities among ex-pat communities are; Valencia, Barcelona, Sevilla, Madrid, and Granada. Nevertheless, there are some not-so-famous Spanish villages with many foreign entrants.
These include, Pamplona, Salamanca, Las Palmas, Cadiz, Malaga, Alicante, Zaragoza, Cordoba, and San Sebastian. Try and surf all these areas before choosing one for more comprehensive ideas of their various offerings and profit potentials (if you are for profit) or the nature of properties and places to visit in the location (if you are for residence).
Form a business strategy
Strategy is indispensable in the real estate business. Please, as you decide on the location, and the kind of properties, do well to prepare your investment strategy. You may need to draw a budget for this; know how much it will cost you (draw up an average/estimate value), know how much will go into maintenance or preparation of good condition over one year, and plan on how to maintain, and make profits from the arrangement. Put your plans into writing and brood over them to identify their flaws.
Carry out due diligence
Lastly, engage due diligence before signing off your money. Do well to research your seller and consider whether you have met the requirements of the law for an enforceable contract?also, endeavor to see the property before paying for it, regardless of your trust.
Adhering to the advice above can save money and help guide you against bad investments. You are advised to go into the industry informed, so read articles and consume information on the subjects as much as possible. You could also follow real estate news in the industry for guidance.
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