When it comes to making money, there always seem to be a roof that is hard to overcome when we are making a living with a full-time job, or a small to medium size business, which generates as much or just slightly more than what a well-paying job would, but no more.
This is why many people, business owners and those who have saved a considerable amount through hard work and creative entrepreneurship often decide to invest in real estate; which offers less risks than other investments, and the possibility of generating a stable passive income, or multiplying the initial investment by applying the buy-and-hold investment property strategy.
This is the main reason for Spain becoming an attractive place for real estate investment in Europe and the rest of the world. Now that Spanish economy is back in the right track, renting prices are increasing, but there are still many low-price houses to invest in.
What should I know about real estate investment in Spain?
Even if there are no high risks involved with investing in Spanish real estate right now; it’s still a good idea to have things quite clear in regards to real estate investment in the country, so that you can get the best ROI (Return on Investment).
Before buying real estate in Spain, it’s worth it considering the following factors that involves buying investment property in this Mediterranean country:
Spain is recovering from a financial crisis
In 2008, Spanish economy was seriously affected by a financial crisis that also affected other countries in Europe, and made people take Spain out of their lists of countries to buy real estate in.
However, the economy in Spain is feeling more and more as the pre-crisis period, which is a great relief, and programs such as the Spanish Golden Visa are thriving and attracting international investors, jobs are starting to appear, and real estate is an important market once again.
Real estate and renting prices are increasing
Before the crisis, real estate in Spanish was a dream for investors. Prices were skyrocketed, rents were high; until crisis attacked and the bubble burst happened, leaving constructions unfinished, and turning luxurious residential complexes into a group of non-profitable houses.
But as the economy gets better, so does real estate in Spain, and there doesn’t signs of another case of another real estate bubble, which brings some peace of mind to international investors.
Rents are also increasing, which makes it a good time for property owners in Spain to generate passive income by renting their property.
Taxes are still lower than in other European countries
When initially understanding the Spanish taxation system, it might seem intimidating and to high. However, if compare to other European countries, taxes in Spain are still lower than other countries, which is a fundamental aspect to take into account if looking to buy-and-hold a property.
There’s not a single best city to invest in
Spanish is a very varied country, with a very dynamic lifestyle, and surprisingly different geographies across the country. And these also makes it more varied in terms of which city it is better to buy and hold investment property in.
The right answer may vary, but some of the best Spanish cities to invest in are: Madrid, Barcelona, Valencia, Malaga y Las Palmas (Canary Islands). Your final decision could vary, but this is a good starting point looking to obtain a good ROI from an investment property.