7 reasons to buy a property in Zaragoza

1. The price of resale homes rises rapidly

The last time house prices fell was back in 2015. Compared to the previous twelve months, they fell by 1.6%. From there, growth has become extremely steep in the capital of Aragon. In fact, during the year 2017, prices rose by around 5%, a figure that is expected to be repeated in 2018. Specifically, the forecasts suggest that the increase in property prices will be 5.6%. Therefore, any financial expert would advise you to take advantage of the upward market situation and buy a home now.

2. The price of land is relatively cheap

At this moment in time, the price per square metre for land in Aragón is €1,255. If the prospects are fulfilled, this figure will reach €1,325 by the end of the year. However, it is a considerably low figure compared to the other large Spanish cities. This means that the growth margin is greater and, therefore, the future benefits that can be gained from such investment will be much higher.

3. Rental prices are skyrocketing

In Zaragoza, the same situation is being experienced just like the other large Spanish cities. At the moment, demand for rental flats far exceeds the existing offer. This obviously means there is a strong price increase in flats for rent. Specifically, only during the twelve months of 2017, the average monthly rent price for properties within the city grew by 7%. The conclusion is that it is becoming easier to make quick profits by buying a property and renting it out.

4. Attractive mortgage rates

Credit has started flowing again and, as a result, it is possible to find attractive mortgages that facilitate the purchase of homes. In fact, taking into account the current interest rate situation, the difference between the monthly payment of a mortgage and the monthly rent is very high. For example, an 80 square metre flat in the neighbourhood of San Jose that for example costs €125,000 can be obtained by paying a monthly mortgage amount of €400 for 30 years and rent it out for €650. If we talk about the historic centre, it is possible to get up to €900 in rent.

5. The options to buy are very varied

Just check the 'stock' of any estate agency to see just how many homes are currently for sale. This is mainly due to the fact that those who purchased during the most difficult crisis times are now taking advantage to sell their property and obtain high capital gains. Banks are also trying to take advantage of those repossessed properties that they took from families who could no longer cope with their mortgages during the economic crisis.

6. Tax benefits for first time buyers

In case you want to buy your first home as your main residence rather than for investment purposes, you must know that right now the Autonomous Community of Aragon offers certain tax benefits, especially to young people. In fact, they can enjoy reductions in the payment of Transfer Tax on resale homes and AJD (mortgage tax).

7. No more suffering from fluctuations in rental prices

When the property rental market is on the up, it can result in property owners making good profits through renting their homes. However, in case of fluctuations, landlords can make losses on their rented property. Due to the increase in rental prices that have recently been experienced in the market, landlords have taken the opportunity to raise rent prices annually based on such situation so tenants end up paying more every month. However, if you buy a property rather than rent one, the mortgage amount that will be paid monthly will be much more stable and not subject to fluctuations. What's more, if you get a fixed-rate mortgage, you will know the exact amount that you will need to pay from the first year.

To sum up, if you want to buy a property in Aragon to either use it as a first home or to rent it out, now is the right time to do it. This is due to the positive forecasts regarding the increase in property prices.