Is buying a property as an investment profitable at the present time?

Taking into account the low values of the Euribor, many are those who resort to alternative sources of investment to obtain profitability. The real estate sector is undoubtedly one of them.
If you have savings or have liquidity, buying a property can be a good option to recover the investment and get recurring income.

Is the real estate sector profitable today?

The pandemic has caused the real estate market to fall in terms of rates and prices, making it an excellent time to invest. According to the latest forecasts, this trend in the sector will continue until at least the end of the summer. You will pay less for a property than when the market is up.

On the other hand. If you pay less for a home, you will recover the investment sooner

Choosing a good property is the key

Even if you pay less for a home, if it does not meet a series of conditions, you will not be able to obtain profitability either.

What to look for?

* Location of the property

In all cities there are some areas better located than others. We also have to take into account who will be our end customer. Perhaps if we think of a family or a couple, the ideal is to invest in a residential area with good transport services, parks, schools, etc. If we think of younger people, the best option will be to rent the property in a central area near the university campuses.

* Amplitude (square meters)

Lofts and studios are fashionable but as always it will depend on the end customer you are addressing. If it is a family you will need rooms while if it is a couple they will not need so much space.

* Distribution of the interior (rooms, bathrooms, terraces, etc).

If your idea is to offer the property as a tourist lease, the ideal is that it is located in a central area and also has several rooms with bathroom to rent them individually.

* Upcoming services

Transport, schools, parks, sports areas, shopping centers and others are highly valued depending on which client.

* Reform yes or no?

We have already talked about Homestaging on occasion. You may be interested in making a small investment in the property you acquire, achieving small improvements but that can double the profitability you get. (raise the rental or sale price).

Investment financing

In the event that you need to apply for financing for the purchase of the property, it is essential to make good decisions and ask yourself key questions such as: How much do I want to invest? How much will I allocate to reform? How are the rentals in that area? What profitability can I obtain between financing and profit?

To answer these questions, the ideal is to have the help of an expert real estate advisor in the sector who can find the personalized mortgage for you based on your characteristics.

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By Catharine Bwana