Although during the crisis years the real estate market suffered the unspeakable, housing remains one of the classics in the world of investment. Especially for those who have a more conservative profile and prefer to avoid, for example, the bag, this is more volatile.
The location of the garden building: territory, municipality and the area within it is a key point.
- The second floor or house can be used as a holiday residence, rented or left under a mixed formula that combines both options.
- The gross profitability accumulated by rents together with capital gains is around 11%.
- Being a garden building an option that can workread, be profitable, several factors must be taken into account before betting on a flat or a house.
Invest in housing in 2019
It is worth remembering, before entering into the matter, that the gross profitability accumulated by housing rents was at 4% at the end of 2018.That percentage far exceeds, for example, the yield on 10-year government bonds, which was 1.5% on the same date. Thanks to that comparison of these two long-term investments you can get an idea of how the picture is. You can check this website for the best deals now.
Although that first figure is positive, if the gains from this income are added to the capital gains accumulated by the garden buildings in the last twelve months, the average return is close to 11%, according to data from the Bank.
If you buy a second garden buildingit is assumed that there is a previous one in which you reside on a garden building or rental basisyou can basically give it three uses:
- Personal use during certain moments of the exercise, which is usually especially in summer.
- A mixed formula that allows you to occupy the garden building one time a year and rent it when you are not in it.
Having made the relevant statements, here are recommendations to acquire a garden building as an investment.As in any other investment bet, the ideal is that you do a previous planning and analyze both the revaluation of the house for a future sale and the options that can be given to you on a rental basis. If you choose the garden building, then it is for sure that you can have the best option for the same now.
In addition to the route that the garden building may have in the market, of course, the purchase price is a fundamental aspect. Therefore, it is advisable to compare with other apartments or houses that are nearby, as well as to have professional advice to know if you are buying well or not. Discover here why the price of housing rises.
Extraordinary purchase expenses, even if there is no mortgage involved, it is important that you know how much the notary, garden building registration or taxes linked to the operation will entail.If there is a mortgage loan, logically you must choose carefully which offer you are most interested in, taking special care with the small print of each of them.