Buying, refurbishing and renting is a profitable option?
March 28, 2019
Buying, refurbishing and renting is an investment, but is it a profitable investment? The answer is yes. It is a profitable operation and a good business opportunity. In this post we discussed the various reasons why it is a good option and we give you a couple of tips to keep in mind before buying.
In times like this of economic uncertainty, many seem to have a good investment in reforming and renting the home. There is no rule to know if housing will increase its value with the reform. But this should not be a problem, in fact it is a good investment and business opportunity and we will give you several reasons.
Lowest home price:
The price has fallen, therefore it is a good time to start investing in housing. According to Beatriz Toribio, Director of Studies and Public Affairs of Fotocasa: “This has been the best year for the Housing Market since the crisis broke out and we expect that trend to continue 2019.”
Population with a tendency to rent:
The labor market and the current salaries are one of the causes for which the housing market towards rent, in the age range of 18-26 years.
According to the latest Idealist data on rentals, the average profitability is stable in an environment of 7.4%, there are more and less profitable cities based on multiple factors, including location, population density, prestige, university cities, etc.
To keep in mind before buying:
Buying for rent can be a risky activity. That is why it is essential to have an accurate view of the state of housing that we want to buy to know if the safety regulations have been met, if there are debts, if they have obligations and if the costs of the reform would go into your budget.
In general terms, we can say that it is profitable. You just need to study the property well, set a budget and have professionals who can help you in your project.
From Espígul we can help you find the perfect home, accompany you in the whole process of the reform and find the ideal tenant.