The Future Forecasts For the Buy to Let Market
The truth is that right now the forecasts regarding the profitability that can be obtained by investors who buy a property to rent out could not be better. This is true even if we take into account the measures approved and planned by the Government of Spain with the purpose of regulating the market and stabilising it. Fundamentally, it is foreseeable that these regulations favour the appearance of a greater number of small and medium investors that, at this moment in time, do not have the sufficient funds to buy a property.
For its part, we must bear in mind that in the near future, the asking price of homes will gradually begin to stabilise. During the last few years, the value of these properties has not stopped growing due to how much they hit rock bottom during the hardest stages of the crisis and the impact that this caused on the real estate sector. We are in fact getting closer and closer to the 2007 prices, except that now banks impose much lower interest rates that are accessible to consumers and investors.
It is also necessary to refer to the properties and real estate packages that, at this moment, the Asset Management Company from Banking Restructuring or Sareb, more popularly known as the 'bad bank', has leveraged. The most optimistic forecasts affirm that these will attract a large number of interested parties from other countries.
Taking into account the good situation of the market and the number of property sales as well as the interest in the buy to lets that exists in the main Spanish capitals, The financial institutions as well as the rest of the banks and lending companies are already starting to opt for some of these homes and choose real estate packages. However, it is estimated that there are still many reluctant investors who are waiting for the property market to reach its full potential and gain momentum.
A Safe Bet For Investors
Based on the above data, it is clear that investors are facing a unique opportunity to obtain excellent returns thanks to the current real estate sector's situation. Undoubtedly, all the figures provided in this article are based on the various operations that these investors themselves carry out. Although the market is tending to stabilise, profit margins are still extremely attractive for investors and they offer minimal risks when compared to other types of investments.