Investment in brick increased by 3.1% in 2022 compared to the previous year. These are public data, from the Bank of Spain itself, which also documented an average return on housing of 8.9% in the country (adding the rental return and the variation in real estate prices).
This figure is substantially higher than the return offered by other assets, such as 10-year government bonds (3.5%) and even investment in the stock market (IBEX-35), which showed negative return numbers (-5 .6%) during the same period.
Housing still has a significant weight in the Spanish economy and also continues to be a favourable, less volatile option, one of people’s favourites. And you don’t need to have exorbitant amounts saved or a lot of experience to get into the business.
Willing to request financing for this, small investors from Housfy, a comprehensive real estate services platform, are investing in flats starting at €30,000 euros today.
Iván Guillén, commercial manager of Housfy Inversión, reminds us that “the bank will generally lend us 70%” of the necessary capital and that, in addition, we will have to face expenses related to the formalization of the sale and mortgage, such as They are the Tax on Patrimonial Transfers (ITP) and the Documented Legal Acts (AJD), the notary and agency expenses, among others.
“With this”, says the investment specialist, “we will be able to buy in many cities in Spain”, in which the investor will have access to homes of €70,000 or €80,000 with great returns.
Anyone who wants to buy a flat to rent in more “leading” cities, where the price of housing is higher, “this initial investment will be higher,” Guillén details. “The initial capital will amount to €45,000 or €55,000, more or less”, to acquire properties that currently cost around €120,000.
In a globalized world, customer needs evolve. There are proptech companies —those that use technology to manage wealth— that have managed to bring investors of diverse profiles closer to large-scale real estate projects.
Housfy Inversión, for example, establishes itself as a comprehensive real estate services platform that centralizes all the services that an investor may need, such as obtaining a mortgage with competitive conditions and managing rental homes. Its manager, Iván Guillén, is open to working with all types of investors who have savings and who want to get a return on them by betting on housing.
There are those who want to be part of the process and are only looking for a real estate ‘personal shopper’ who presents them with exclusive investment opportunities, which often do not make it to the market and are therefore not found on the usual home-for-sale portals.
There are also those “who do not want to have that responsibility, that burden, after buying the home,” says Guillén, and who are looking for a company to whom they can delegate the entire management of their properties. It may very well be local people who prefer to entrust this task to specialized companies, in order to reduce the risk of their investment and, also, the time they dedicate to them.
But it can also be people who do not live in the city, for whom this remote management becomes a requirement. Guillén gives as a significant example expatriates, nationals living outside the country, who have enough capital to invest but little availability or accessibility to manage their properties.
