Keys to earn money investing in a home in Malaga
.
Housing is one of the most profitable investments and many new investors are starting out in the real estate sector buying empty or poorly maintained homes., reforming them and putting them back on the market as a rental to reactivate the real estate supply.
.
🏡 How to earn money with the investment of a rental home
To earn money investing in housing, First, you must consider the fact of having a certain solvency, or at least have the necessary requirements for apply to the bank for a mortgage. Once we have the capital or bank pre-approval, we can start our search.
.
🏡 How to find a cheap apartment to invest
In this step, It is essential to have the help of one or more real estate agents, that will feed us with the offers of the area. We must be clear in our position. The house must be well connected, and with enough services and shops nearby to make the area attractive. In second place, we will opt for a property to reform, which will be much cheaper and easier to negotiate. In third place, we will take into account the budget of the reform so that it adapts to our financial capacity and can be quickly amortized with the rental price. In this way we will obtain a wide profitability of the property.
.
🏡 What is the profitability of a property?
The total profitability of a home or property is the result of the income that we obtain annually for the rent minus the annual expenses that maintaining that home generates. (tax payment, IBI, community, etc.). The result will be the net profit.
The net return on buying a home to put it on the rental market already reaches a rate well above that offered by other bank deposits. Hence, many owners opt to rent their home rather than request another type of investment..
The real estate market offers higher returns depending on the district in which the house is on offer and with which a greater profit could be obtained, since it is valued more to offer a house on the beach, than a small apartment in a popular neighborhood, and yet maintenance costs, they will not be very different.
Real estate continues to rise in Spain's big cities. The most attractive districts for investors are in Barcelona, Valencia, Madrid and Malaga.
.
.
What type of housing is recommended to buy?
A small apartment near the coast or in the outlying areas of the urban core, who has good communication, are the most profitable properties for the new investor. Once your performance has grown, You will now be able to opt for larger assets, such as renting chalets or luxury villas, that bring great income in a short time.
🏡 Tourism growth, the supply of holiday apartments and the demand for student flats are the main source of income in Malaga.
The income of those known as senior boomers, or generation of 60, cries for returning to the center of the cities, and it can be a good starting point for small investors looking for moderate and low-risk profitability.
Add to this the rise in sales and rental prices, competition between banks to benefit from the mortgage loans, because of the latest mortgage law reform, they need to find customers with a desire to buy short-term housing. Además, the state's initiative to grant rent aids housing is an advantage when it comes to finding renters with financial support.
For the most experienced investors able to take higher risks it is a good time to buy a small building, to turn it into tourist apartments.
Another area with the highest demand and rapid benefit are university areas, because in many cases, it is the student centers themselves who are responsible for re-enusing students who have not been able to enter their residences. It is always good to have the endorsement of the parent or guardian to ensure the effectiveness of the payment.
.
🏡 Which are the most profitable districts to invest in housing in Malaga
The most profitable districts of Málaga are located in the coastal area, specially in El Palo, Pedregalejo y Rincón de la Victoria.
In terms of rent, supply and demand high expectations are also placed among students. Sectors like Teatinos, AV. Ortega y Gasset o Carlos Haya They are places predisposed to receive students who cover the rent during the school year at the University of Malaga.
.
🏡 How should I request a mortgage to invest in housing?
Regarding banking terms, Banks offer different products and clauses depending on the type of home (if it is 1st residence, 2º residence or investment? To do this, we recommend that you consult with an expert advisor on financial issues..
Want more detailed information? Get a look at our finance MaxiCredit. Free, non-binding consultation.
✅ Start investing in cheap flats in Malaga
.
.
Drafting:
Sheila Gandulla
Communication and creativity
Planetacasa Marketing Department