In difficult times, the real estate market gets usually considered a safe-haven asset because it represents a less volatile investment than others. However, more and more people are considering buying a home to rent as an alternative to traditional forms of investing, seeking an attractive return both in the short and long term.
But before launching into the search for real estate, we shall consider the type of rental we'll choose: conventional (long-term) or holiday (short-term). The first case offers the advantages of a larger supply of homes for sale at competitive prices, demand throughout the year and stable and sustained benefits over time.
Holiday rentals, on the other hand, offer higher profitability, although much less stable. One of its significant advantages is the possibility of having the property for other uses when it is needed.
Tips for buying a rental home
In any case, when buying a home to rent, it is essential not to rush. The profitability obtained will depend on it. We should assess many questions before taking any decision:
- Setting the minimum rental price and the maximum purchase price: the goal of buying a home to rent is obtaining profitability. Therefore, it is essential to strike a balance. The ideal is to invest in areas with acceptable rental prices and competitive sale prices. It's difficult, but not impossible.
- Location is fundamental: we'd go for areas with high demand and competitive rental prices. In other words, the possibilities of renting are greater in middle-class neighbourhoods and suburbs where, in addition, the odds of taking roots is more likely. Besides, the purchase expense will be less than in areas considered luxury or highly touristy.
- Buy a fixer-upper: one of the ways to get housing at lower prices is to choose properties that need some reform. Nowadays, some solutions allow a complete renovation within a reasonable budget, like dry construction.
- Seek opportunities: in the real estate market, bargains are sometimes slow to arrive. Better not be in a hurry. Those opportunities can come in as a bank repossession or an inherited property that sells for less than its price. We could also search properties that have been on the market for a long time and try and negotiate with the owners.
- Profitability: it is the crucial factor, and all the previous points influence it. We must sum up all the expenses: from the property purchase or maintenance to the renovation, taxes or insurance. This operation will make it possible to adjust the rental price and calculate the potential benefit of the investment.
Spainhouses.net helps you out
If you are thinking of buying a home to rent, Spainhouses.net will make it much easy. On the one hand, you have a statistics section to check the sale and rental prices by provinces, cities and urban areas. On the other, with the help of a browser, you'll find the perfect property for you.
Don't miss any opportunity. It is the right time to buy a rental home. Wait no more!