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:
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Spain is recovering from a financial crisis
In 2008, the Spanish economy was severely hit by the financial crisis, which also spread to other European countries, causing people to remove Spain from the list of countries to buy property.
However, the Spanish economy is increasingly resembling the pre-crisis period, this is a great relief. Projects such as Spain’s Golden Visa are booming and attracting international investors.
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Real estate and renting prices are increasing
Before the crisis, Spanish real estate was an investor’s dream. Prices soared and rents were high; until the crisis hit, the bubble burst, construction was not completed and the luxury residential area became a cluster of unprofitable homes.
However, as the economy improves, the Spanish real estate industry is also improving and there are no signs of a new property bubble, which has brought some confidence 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.
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Taxes are still lower than in other European countries
When first understanding the Spanish tax system, it can seem overwhelming and excessive. However, when compared to other European countries, Spain’s taxes are still lower than in other countries, if you are looking to buy and maintain a property, this is a basic aspect to consider.
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There’s not a single best city to invest in
Spain is a very diverse country, with a very dynamic lifestyle and the geographical environment varies across the country. This also makes the city best suited to buy and hold investment property more diversified.
The correct answer may vary, but some of the most suitable cities in Spain to invest in are: Madrid, Barcelona, Valencia, Malaga and Las Palmas (Canary Islands). Your final decision may be different, but this is a good starting point for a good return on real estate investment.