Tips to know if buying a house in Spain is a good purchase
You are going to buy a home as an investment, but you are not sure if it is a good purchase. Today we bring you the keys that will help you know if a property is a good purchase or not.
Acquiring a property must be a decision based on facts and aspects that indicate that we have made the right decision, especially if we want to buy to rent and obtain profitability with the purchase.
Before making any type of purchase you should know how much you are willing to spend or how much you can spend.
Of course, before you must know several things. The first thing is that a real estate investment is not a single purchase and that there are certain added expenses. We will divide these expenses into fixed and variable expenses.
Among the fixed expenses we have the following:
- Local and regional taxes.
- Management and paperwork expenses: notary, Land Registry, etc. Figure around 2 to 5 percent of the total price.
- Insurance and fixed expenses such as the community fee, electricity, etc.
The variables can be these:
- Maintenance and/or reform expenses. Here you must take into account the state of the floor.
- Mortgage cost. Keep in mind that not everyone has the same money saved and cannot access the same amount of mortgage. For this reason, we include it as a variable.
Variable expenses can be the most difficult to calculate, but it is important to include them and anticipate them.
Purpose of the purchase
Buying to rent is not the same as buying to live. In the first case, you should pay attention to profitability and in the second to other factors such as the price, location and condition of the home.
Location and market price
The location of a flat or house is a critical factor when buying. It is not the same to buy in the center of the city than in the outskirts.
It may or may not seem like a mistake, but if you buy the flat that you like in a place that you are not happy with, it is still not the property that is worth it. Unless you want to rent it and you don’t care.
In this sense, along with the location, there are other factors such as the market price, the cost of renovation and investment.
For example, the location of the property you want to buy may not be the best in the city, but other factors make it worthwhile.
Think that the competition, the market price and the renewal can become so low that the purchase still compensates you. Or not. It all depends on what interests you.
Investing in real estate is not an easy task. Many factors come into play that must be taken into account. For this reason, it is best that you have professionals who can help you make the best purchase decision.
If you want to invest in a vacation home and need professional advice, do not hesitate to contact us. We are experts in real estate purchases and investments.