Are you thinking of buying a house, but still have doubts? Find out why it is a good time to make this investment!
Do I buy or not buy? We are sure that you have asked yourself this question when buying a house. The real estate crisis that the sector has experienced after the bursting of the bubble has generated an environment of uncertainty, and doubts assail consumers. However, experts confirm the signs of recovery and, in fact, the real estate market is heading towards stabilization .
The price confirms its upward trend, but remains at reasonable levels, and credit to individuals is flowing positively . Furthermore, according to BBVA Research , economic activity will grow 2.7% this year , an improvement that will translate into the creation of nearly one million jobs.
These factors will undoubtedly enable an increase in private demand, but there are few of you who keep wondering if it is a good time to buy a flat. The answer is not a categorical yes, but it is optimistic. Let’s see why.
The price increase
The price of real estate is rebounding. The Ministry of Public Works confirmed that, in 2015, it rose 2.1% to an average amount of 1,492 euros per square meter, a figure close to 2004 levels. This increase, however, is subject to location and situation. of the house, and the coastal areas are revaluing to the upside .
Therefore, we recommend that, if you want to buy a home at a reasonable price, even cheap, do it now, before homes continue to get more expensive.
Tajarat properties Head of Studies, Fernando Encinar, affirms in an article in El Economista that prices, for now, are contained and, therefore, it may be a good time to buy a home. In the same direction, points out that this is an ideal time to purchase a home at reasonable prices.
Banks are open to credit
Financial institutions have turned on the mortgage tap and, furthermore, interest rates remain at historic lows. Banks have reduced the requirements for granting loans , which in January grew by 4.1% compared to the previous month, December 2015.
Likewise, as we have already advanced, interest rates are very low and, in addition, there has been a created a new fixed rate that does not depend on the variations of the Euribor and, therefore, remains stable even if this indicator makes floating rates more expensive.
These credit facilities, coupled with still reasonable prices, have resulted in a rebound in private demand, because both factors confirm that this is a good time to launch into investment in housing.
In search of profitability
If you are thinking, for example, of buying a second house in which you only spend your free time, why not rent it when you are not in it and make it profitable?
Now is a great time to do it. Although, the rental trend is growing and, therefore, experts recommend buying and, if possible, renting to obtain a return above the debt incurred after the granting of a loan.
The stabilization of prices, credit facilities and the opportunity to make your purchase profitable are the key factors that show that we are at a good time to acquire a home. If you are convinced and have already made the decision, we also propose a series of tips and aspects that you should assess before buying an apartment:
Set a budget. Before you start looking for a home, consider what you can afford and how much you want to spend on your purchase. In that sense, if you ask for a loan, make sure that it is equal to or less than a third of the family income.
Also, keep in mind that the expenses will not only be those of the acquisition, since the costs of notary and property registration will have to be added.
What is your employment situation . It is recommended that your job has stability over time in order to avoid possible scares in the future.
For this reason, before taking the step, consider your employment situation and that of all your family members who contribute income.
Learn about all the mortgage options . Once your employment situation has been assessed and, with it, your financial stability, you must bear in mind that you may be interested in one or another type of credit. Your ability to borrow and save will guide you when making the decision.
Where do you want to buy and how do you want the home ? The location of the home is a fundamental factor in choosing one option or another, especially due to the influence it can have on the price.
In that sense, you must establish which is the area that interests you and, once defined, define how you want the house to be, that is, the number of rooms, bathrooms, the existence of a garage space, etc. If, in addition, you make a list with the expendable and essential elements, the decision will be easier.
Ask for advice . If you are not an expert in the real estate sector, it is best that you have a professional point of view that will advise you throughout the buying and selling process. Bahria Hills for example, puts this service at your disposal.
Visit before buying . Make a list with all the homes that you liked and go to visit them. It is very important that you see the property before acquiring it, since the photos can be deceiving, and you know first-hand what can become your home.
Real estate crowdfunding, do you know what it is?
Can you imagine owning a home for only 100 euros? Real estate crowdfunding allows it. Find out what it is and how it has evolved!
The evolution of new technologies has had an impact on the economic system, in which the collaborative economy, also called crowdfunding , has gained ground to become the present. But what does this crowdfunding consist of?
This method is based on the financing of joint projects by a network of people and, in recent years, it has landed and increased its prominence in the real estate market. We are already talking, therefore, of real estate crowdfunding, which allows small investors to finance the purchase of a flat.
The situation of the Real Estate market is optimal for investment: low interest rates, less requirements for granting loans, house prices that stabilize at low levels or growth in demand are the credentials that define, for now, the real estate.
However, the insecurity generated by the economic crisis has meant that many do not dare to risk their assets on a single home. For this reason, real estate crowdfunding is a very tempting option, since regular investors can diversify their operations, while those who are not used to it have the possibility of risking a minimal amount.
In this sense, people who invest in a residence or finance a real estate project can obtain profitability from the rental of the property, or obtain the proportional benefit derived from the sale. The origin of this system is located in the Anglo-Saxon world and, in fact, in countries such as the United States and the United Kingdom, the collaborative economy in the housing sector is very common.
In addition, experts point out that real estate crowdfunding has already taken off. In this sense, the Crowdfunding Association points out that crowdfunding in this country attracted between 90 and 120 million euros in 2015 and estimates that this amount will rise to 250 million in 2016, of which 15%, approximately 37 million, were attributed to real estate crowdfunding.
The figures are encouraging, but still restrained if it is understood that the housing market moves 14,000 million euros per year.
Real estate crowdfunding practical cases
We have already anticipated it before: the collaborative economy in Real Estate is gaining ground by leaps and bounds. It is not surprising, therefore, to find platforms on the Internet that connect investors interested in housing. What platforms are we talking about?
Housers . Two entrepreneurs created this portal, the first specialized in real estate crowdfunding. This platform allows almost anyone to become an investor, since it only requires a minimum investment of 100 euros.
However, the maximum amount has certain limits for non-accredited investors, since the law establishes a ceiling of 3,000 euros per project and 10,000 in a 12-month period. Likewise, investors become owners certified by a notary and receive monthly income from the rent or the benefit that corresponds to them from the sale of the house.
Housers is not even one year old, but it already has more than 3,000 users and 1,500 accredited investors.
Investigate . It is an online real estate investment platform that has a team of professionals who are experts in the real estate sector. They are responsible for conducting an exhaustive analysis to prepare a feasibility study for each operation and establish its profitability.
The objective of this portal, therefore, seeks to minimize risk and get the most out of the home. The flats, generally, are of first quality and are located in the privileged areas of the cities or municipalities.
InvesReal. This portal is also committed to attracting small investors, since the minimum investment is 500 euros and, in addition, it offers returns of between 4 and 15%. To achieve the latter, its experts explain that the risk is moderately higher.
The regulation of crowdfunding
Law 5/2015 on the Promotion of Business Financing is in charge of regulating the collaborative economy and, consequently, also real estate crowdfunding. According to current legal regulations, platforms dedicated to this activity must request authorization from the National Securities Market Commission (CNMV) in a registry that is public. Likewise, the services that these companies can provide focus on:
- Reception, selection and publication of projects.
- Development, establishment and operation of communication channels to contact investors.
Regarding investor protection, the law encourages measures such as limits on the number of projects published by the platform and on their volume, a distinction between accredited and non-accredited investors or the obligation to sufficiently inform investors, among other requirements.
The real estate investment is now easier thanks to the launch of crowdfunding platforms that enable almost any citizen to become a real estate investor for rental and sales profitability without great risk. And you, what are you waiting for to try it?