REAL ESTATE – INVESTMENT – When is the best time to invest in the real estate market in Spain?
When is the best time to invest in the real estate market?
The growth forecasts in the average house price for 2021 suggest that this end of the year will be a good time to invest in the real estate market, but what is the best time to do so?
Keys to knowing when is the best time to invest in the housing market
Evolution of house prices
The price of the house is one of the main variables that must be taken into account when deciding on one property or another. The area in which it is located, the qualities of the property, if they have additional services in the community, the neighborhood or the city are decisive to set the price. However, if the objective is to invest in the real estate market, the appreciation potential of that home will be essential for the final decision, regardless of price.
According to the latest data for 2021, the average price for prefabricated houses (new and used) increased by 2.1% and 1.4% year-on-year in the second quarter compared to the same period last year. But the evolution by communities is not the same, so it is important to know what the evolution is to choose the best time to invest.
Potential for home appreciation
Home appreciation depends on many factors, including the price of the home and the area in which it is located. However, within the price of the property, fixed expenses such as the community, spills or taxes must be taken into account, which determine the revaluation of said investment in the short and medium term.
In addition, it is also important to obtain a mortgage loan with advantageous conditions for the buyer. The current moment offers very favorable mortgage conditions, but a detailed study should be carried out to choose the one that best suits our investment capacity. The different banks recommend that the mortgage does not suppose more than 30-40% of the main salary of the family unit. This limit is established to avoid unnecessary risks of default.
In addition, if the property is intended for investment, it is essential to analyze the growth prospects existing in the different areas of the city: which ones are beginning to be more in demand, places with greater dynamism, future headquarters of entities, such as universities, large companies , public administrations …, are some of the keys that can help in the appreciation of the home.
Invest to rent
The rental market, whether vacation or long-term, is booming and many investments in the real estate market pay off with their subsequent lease. In these cases, it is more interesting to invest in a second-hand property in one of the areas with the highest demand in the city.
As we mentioned in the previous point, regardless of the use that is going to be given, the location is key when investing. Good connections in public transport or roads, shopping and green areas in the surroundings, educational centers … will always be guarantors of keeping investment up.
To make a good investment, wouldn’t it be better if someone could help you with this complex task? If you really want to make a safe and profitable investment, your best bet is to hire a real estate investment expert.
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