Real Estate Investment
Be greedy when others are fearful… (W. Buffet)
In times of crisis, real estate investment becomes interesting again. If it’s a holiday house on the Costa del Sol or a stylish holiday apartment in the centre of Barcelona: real estate investment has the advantage of being able to manage and use your money in a clever way.
And your capital can not be taken away from you, in contrast to your bank deposits: as we all know, our EU representatives are planning on using our private capital to save banks that have gone in troubles. It’s supposed to start in 2015. So, who will really want to have more than 100.000€ lying on the bank?
The problem of real estate investment is: where to invest? Big or small, modern or old building, an inexpensive flat on the ground floor or an overpriced pent house? Here a few ground principles of real estate investment:
- Never forget: the business lies in purchase.
- The best purchase price is the one that we from Home Inspector Spain achieve for you. Because we find construction defects, and turn them into arguments for your price negotiations. It works the same way as it does with a pre-owned car: the more scratches, the lower the price.
- Location is everything. Does the area have a prospect of increasing in value? Is it an attractive town?
- Real estate investment in top locations and trendy towns (holiday areas just like the Costa del Sol) cost far more in purchase, but are also more likely to maintain their value – even in times of crisis. That rule can be applied internationally, in Spain as well as in other parts of the world.
- Smaller properties are more expensive in relation to bigger ones (considering price per m²), but bring more earnings in rent (higher return).
- Renting for holidays is an interesting idea, although administration costs have to be taken into account (cleaning, handover of the keys, maintenance, taxes).
Purchase best in times of crisis, sell best in times of boom.