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Buy to let in Madrid

Data from major real estate agents states that students prefer to rent a flat rather than reside in a college or student residence. In fact, 70 per cent of young people who, in order to study, prefer to move to another city than the one they usually live in because they want to feel more independent.

In addition, this has contributed to rental prices lowering. Generally, private rentals are more in demand than residences. This is something that has encouraged parents to let their children try their luck in this way. For its part, the same goes with respect to thousands of investors who have decided to use their capital in property to rent out to students. 

Generally, the flats purchased for this purpose usually have a fairly low price and, in addition, are located in areas near university. Likewise, they also often require major remodeling. However, it seems clear that a low monthly mortgage, coupled with the prices at which the rental market is currently managed throughout Spain, make the balance ostensibly lean towards the profit side.

Madrid - comprar-vender-casa-espana.jpg

Because in many cities there are old houses quite close to university campuses, the truth is that countless buyers find real bargains at prices ranging from 36,000 euros. This makes it possible, after renovating, to get a mortgage of only 50,000 euros, an amount quite appealing to an average saver.

These undeniable benefits, coupled with the assimilation within the rentability market as opposed to the purchase and sale of property, has meant that many are no longer fearful about investing their savings in the buy to let market. In fact, it is estimated that this type of investment is fully amortisable in installments ranging from 7 to 10 years.

It should be noted that, for some time, landlords have the right to demand payment guarantees from students, which are usually the income of their parents since bank guarantees do not always cover all plausible contingencies. In addition, real estate specialists are increasingly making more detailed contracts in which even the inventory of specified assets appears with complete precision. The real estate agents can also impose additional terms such as paying one month deposit in advance before handing over the keys.

In short, the real estate market, which in recent years had been struggling, is regaining strength once again and taking advantage of the opportunities offered by students.

Engel & Völkers

Madrid
Génova, 27 - 5th floor
28004 Madrid
Spain
Phone
+34 91 277 45 00

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