How to become a successful real estate investor
Franklin D. Roosevelt, former President of the U.S. said “Real estate cannot be lost or stolen, nor can it be carried away. Purchased with common sense, paid for in full, and managed with reasonable care, it is about the safest investment in the world.” Many people agreed with that thought and, as a consequence, they buy properties. Are you interested in investing in the old continent? Then, a Spanish golden visa could be your best option.
This program allows you and your family to get a permanent legal residence status in Spain through the purchase of one or more housing or commercial chattels. The main condition for applying to get is that total capital used has to be at least 500.000 Euros. Do you have the capital but you are not an expert in real estate investment? Let´s share basic tips about you can become one.
Some advices to be a great real estate financier
Here you are some ideas that will familiarize yourself with that business:
- Location is important. Search for the worst property on the best neighborhood, that way you get an opportunity to revalue your capital. You get it cheap because it is not in the greatest condition and then invest a little to remake it up. Finally, rent it for the real amount according to the splendid location. In a short time you will recover your outlay.
- Seek for wholesales. To maximize your benefits stay away from “full price” houses. It is better to look for the biggest discount. Logically, they will require some repairing handiworks. Make the calculations and decide if the capital invested in rehabilitation is worth the renting price.
- Get familiar with government tax benefits. In order to stimulate real estate investment, it is common that national administration offers excellent advantages to these capitalists. Consult the available Spanish tax exceptions laws and everything related to mortgage interest, insurance cost, etc., with the local lawyer company contracted to advise and guide you through this process.
- Apply the 1% rule. This let you evaluating if the property offered price is acceptable according to the amount that a future tenant is going to pay for it. For instance, the house purchase value is 250.000 Euros; therefore rental earnings must be around 2.500 Euros each month.
In conclusion, real estate investment provided by Spanish golden visa has the potential of providing extraordinary profits. Nevertheless, some people have broken themselves this way. Due to that, the general recommendation is applying wise learning about the subject before starting. Additionally, searching for a local legal representative company is the smartest thing to do.