You might be seriously considering the possibility of buying a property right now. If so, this does not surprise us as 2018 promises to be the perfect year for buying a home, especially if it's a finca or cottage. Here we are going to give you 10 reasons why we believe that this is an opportunity you should not miss out on.
Fotos: © Engel & Völkers Madrid
Main reasons to buy a finca or country house in 2018
1. The prices are excellent
Prices have not yet returned to pre-crisis levels. In fact, in many places, it is possible to find this type of property between 30 and 60% lower price than in 2008. However, the market has been picking up for a few years now, so it is foreseeable that in a relatively near future, fincas go up to almost the same value as they were a decade ago. Therefore, beyond being a perfect alternative to live in, they also represent an excellent investment.
2. The offer is very extensive
It may be hard to believe but the truth is that at the moment, the offer of fincas and cottages available for sale is really wide and varied. Therefore, we are sure that, no matter what the characteristics of the property are or the place you want to buy it in, you will be able to find one without much difficulty.
3. Seize the opportunity
In spite of the fact that people have different tastes in properties, these days the buyer continues having the upper hand in the negotiations at the time of buying a finca or a country home. This means buyers can get better quality fincas for a lower price upon negotiation. After all, you should bear in mind that this type of property is generally less available for sale than other types of properties, so sellers may find it more difficult to find an interested party who would agree to all its conditions.
Fotos: © Engel & Völkers Madrid
4. We are experiencing an economic cycle change
The deepest period of the crisis has been left behind and, as it always happens with economic cycles, now it is time for a recovery and progress phase. For this reason, the normal thing that would happen within a short time is more demand for property that makes the prices of this type of real estate more expensive. It is not known when exactly this demand will reach the property market, so taking advantage of the opportunity in 2018 will be of vital importance.
5. Mortgage rates are very affordable
Normally, in order to buy your finca or country house, you have to apply for a mortgage from the bank. During the last few months, lenders have started granting loans at a good pace as they have been motivated by economic growth and lower interest rates. Today, the Euribor, which is the main differential that governs mortgages in Spain, is in negative figures and more and more banks are offering mortgages at fixed interest rates of less than 2%.
6. Much cheaper than renting
The days of renting being more profitable than buying has already passed. In fact, just take a little look at the market to see the rental prices of fincas or country houses being quite high. In fact, if they are compared with the loans or mortgage rates that are granted for their purchase, the difference will be quite pronounced.
7. A unique opportunity
More and more foreign investors are asking us about this type of property within our country in order to take advantage of the fact that prices are still well below the true value. Without a doubt, this is a strong indication that we are facing an absolutely unique opportunity that should not miss out on if one of your biggest dreams is to become the owner of a finca or cottage that allows you to live in the middle of nature surrounded by luxuries and mod cons.
8. It is a guarantee
Any real estate is a guarantee for the future. This is due mainly to the fact that, beyond owning a place to enjoy in the present and in which to reside or have as a second residence, it is a guarantee of investment that after some time, can bear fruits and incidentally, tranquility.
9. Opportunities abound
Both the banks that repossessed these types of properties at the time because of the economic crisis and the debtors who were not able to pay their loans with the investment funds they had taken out took advantage of the circumstance to buy for a lower price and have now started to market their properties. This is the reason why it will not take long to find the right home according to your specific budget and your needs as long as you take advantage of the opportunity.
10. Making profit through letting
Starting from the base rate provided by the Bank of Spain, those who opt for buying a finca or a country house for the purpose of letting it for profit, the average annual return will be around 4.7% and this will not stop rising. This implies that, if a considerable amount of money had to be invested in the property at the time of buying it, in a few years the investor will recover the amount he originally paid upon selling the house or enjoy living in it for the long term.
Fotos: © Engel & Völkers Madrid
