Five basic tips to make investing in the purchase of a home profitable for a small saver

the lofty inflationthat in the month of August reached 10.5%, is being a particular sword of Damocles for families. On the one hand, he is putting them in a very difficult situation to meet all their expenses. On the other hand, he is gobbling up your savings.

“This loss of purchasing power, and the poor forecasts for the coming months, is leading many small savers to invest their savings in real estate”, affirms Jesús Duque, vice president of the Alfa Inmobiliaria network. In addition, as he comments, “investing in housing allows us to protect savings from inflation through a real asset that does not have volatility, nor does it require the level of knowledge that other types of investments do.”

If we add to this the profitability of the rental (in August it has risen an average of 6.4% in Spain compared to the same month of the previous year, according to Idealista), “possibly investing in housing is one of the best options.” Another piece of information according to the expert: “Inflation and price increases for all types of products and materials can only be the precedent for new increases in property ownership”.

savings level

With these antecedents, the investment in housing wins integers among the small savers. First piece of advice: it is interesting to invest in housing “as long as the buyer has some savings and does not need to finance more than 60% of the property”, remarks Duke. Therefore, reduce your debt to a minimum. Among other reasons, because mortgage interest rates are on the rise: both fixed and variable.

“You must realistically assess whether a future increase in interest rates could have a very negative impact on your financial situation. Therefore, you should analyze whether you prefer to buy now, at current prices, or wait to see if they go down, even if you have to pay higher interest. The key is in the existing level of savings”, he points.

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The second piece of advice is to study well. the location of the property and whether its characteristics are in line with market demand of rent in the area. “And, of course, avoiding assets with poor construction or maintenance that will always complicate their release to the market”, clarifies the vice president of the Alfa Inmobiliaria network.

The third of the recommendations is aimed at those who acquire housing to put it up for rent. “They must choosing a property suitable for various types of demandwhether for a long-term tenant, for the student who rents for nine months, for tourist rental or even for use as an office”, he indicates.

The fourth suggestion is Negotiate well the rent revision clauses of the contract, taking into account inflation and face them with the costs associated with maintaining a property. And, finally, and if you have doubts, that’s what professionals are for. It should not be forgotten that acquiring a home is an important operation and that it will condition the financial health of those who do it for years.

Beyond these five points, and as a guide, Duque points out that large cities such as Madrid, Barcelona, ​​Valencia or Malaga (which have been leading the increase in housing prices for months) are beginning to show signs of exhaustion.

where and what to buy

Currently, the most interesting opportunities to make a home profitable through rental are found in medium sized capitals such as Soria, Murcia, Pamplona, ​​Zaragoza, Talavera de la Reina, Toledo, Las Palmas de Gran Canaria, Seville, Tenerife, Huelva, Huesca or San Sebastián. Are cities with scarce supply, and where prices have not yet reached the previous peaks”, points.

How is the most demanded housing? An apartment, preferably with one bedroom, well located, and without much interest in being accompanied by a parking space.

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Duque concludes by pointing out that, in Alfa Inmobiliaria, during the last three months, 95% of the operations have been for rent, and the remaining 5%, to reform and sell immediately. “Given the current difficulties to carry out an express reform, due to the shortage of both materials and qualified labor, the typical buyer has banished the idea of ​​speculative investment in housing.”


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