Spain Real Estate News
Although there are many real estate investment strategies, some are not well known to beginners or people who do not know the market in-depth and how to operate. Nevertheless, investing in real estate provides attractive profits, especially in a period of financial instability, when the real estate market is considered a safe-haven asset.
...continue reading "Real Estate Investment Strategies for Beginners: Traditional and Alternative Options"
The real estate market is, in the current circumstances, a seller's market. It means that demand exceeds supply, and what is an enormous advantage for the owner is not so much for a buyer. Although buying a property in a competitive market is a challenge, finding the perfect one to become your new home or a profitable investment is possible.
The fact that the housing stock is lower than the demand means less bargaining power but does not necessarily imply fewer opportunities. It'll be necessary to have more flexibility and avoid rushing. However, the desire to get a specific home and the competition make it easy to fall into common mistakes that often hinder operations. We'll tell you which are the main ones you should avoid:
The pandemic, lockdown and teleworking have changed the perspective of what we need in a home. Aspects that previously were not important have become a priority. And all this has had a consequence on our needs when purchasing a home.
Thus, living in the centre of cities has ceased to be a fundamental aspect when choosing a home. Today, we seek specific characteristics, although it is necessary to move away a bit. If the area we choose offers convenient services and transport, it doesn't matter if it's not the city centre.
When we face an irregular economic scenario or high inflation, housing gets considered an investment that is safe and profitable. For this reason, this year is good timing for investing in real estate.
Another incentive to opt for investment in housing in 2022 is the gross rental return. According to data from the Bank of Spain, it stood at 3.7% in 2021, while the return of 10-year government bonds, for example, barely reached 0.5%.
The economic situation points to a rise in interest rates. Europe has largely recovered the GDP lost due to the pandemic; however, inflation has skyrocketed. In February, the CPI -Consumer Price Index- in Spain experienced an upward variation concerning the previous twelve months of more than 7%, a figure that wasn't that high for decades.
For its part, the US Federal Reserve already predicted a rise in interest rates at the beginning of the year, and the president of the ECB recently left the door open to it. The international outlook added to the rise in electricity, gas and fuel pricing could be the final push that leads to the decision.
...continue reading "Is an EU Interest Rate Hike on the Horizon?"