If you are someone who has given up on the dream of investing in real estate before seriously attacking the market, you should consider certain trends. We recommend investing in real estate right now, and now we will explain why.
Construction is growing and embargoes are declining. INE (the Spanish statistics institute) recently reported that the annual residential sales in 2016 have increased in approximately 20% compared to the same period last year.
Far from being small, the median sales of properties in Spain increased more than 11% per year, the highest increase since 2012.
Clearly, the conditions are optimal. Taking into account how the economy is today, with low property prices, low interest rates and increased housing demands, there was never a better time to generate profits with a rental property.
In my opinion, the next five years will be the best for those who choose to make fortunes with real estate. If you already have a good property investment, keep it taking good care of it. Don’t fell tempted to sell.
Property investment now, our recommendation
1. Do not miss the lucrative “rebound”. The best time to buy stocks is when they have hit bottom and are bouncing up. I like to call this the “bottom bounce”. We can expect from three to five years of strong appreciation after the market declines which we witnessed in late 2012 and early 2013.
With home prices rising steadily this year, it is an ideal time to invest in rental property, both from a personal finance perspective and from a smart business investment. Keep it in mind, the sooner you act, the more money you will make.
2. Properties have not been this accessible as now in decades. Mortgages are staying at a low rate. This means that the monthly costs make the investment properties an attractive way to generate value.
In this market conditions, you should not underestimate the value of the assets offered by a profitable property.
3. Rental prices are increasing. Even with the low mortgage rates, property homes are, unfortunately, a distant dream for a lot of Spaniards who are still recovering form the financial crisis. As a result more people live in rental houses. The increase in people who will have the need to live in rental houses will increase and this will benefit your strategy.
With demand increasing costs, rental prices are at their maximum. This increase in demand is highly beneficial for investor who will see their investments appreciated, as well as generating fixed monthly income.
4. Capital is increasingly accessible, beyond the search for a conventional mortgage loan though a bank, there is an increasing number of private equity investors available to offer financing in exchange for a portion of the income.
5. You can be a stress free owner. Welcome to 2016, the year in which being an owner does not necessarily mean having a constant pain.
With new technological solutions, Fintech and the emergence of service-oriented businesses’, most of the work takes only a fraction of time and energy.
There are two options: you can hand it over to a Trusted Property Manager like Cat Real Estate or you can do it yourself, using internet applications and software, to market you properties, collect rents and analyze your investments.
It’s time to move! I am passionate about involving more people in real estate investing. I have seen for myself how generating income through rental properties can transform people’s lives, families and futures.
Whether you are making your first investment or maximizing the potential of your portfolio gains, it is time to take full advantage of this market.
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IN CAT REAL ESTATE THE VALUE IS THE PEOPLE
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