Housing profitability (rent plus price variation) has increased to 7.7% in the third quarter of 2023, according to the latest real estate market indicators report from the Bank of Spain. This variable had remained stable in the first two quarters at 7.1%.
The yield offered by renting a home doubles that of 10-year State bonds, which in the third quarter was 4% and dropped to 2.9% towards the last quarter of 2023.
There are several formulas to calculate the profitability of housing. The Bank of Spain, for example, includes the variation in housing prices in general, although it is also possible to make approximate calculations based on rental income and fixed housing expenses.
To make it easy, you can access the Housfy Rental home profitability calculator and enter the data it asks for regarding income and expenses. It is very simple and intuitive, as well as free, and gives you a good idea of ??the return on investment before making decisions.
Currently, market interest rates are high, which is why savers can deposit their money in various assets that give them a return one year from now. However, we will rarely find deposits with yields higher than 3.5% and, furthermore, if rates fall again in the coming years, these assets will also disappear.
Rental housing offers higher returns than what a bank offers for depositing your money. Furthermore, profitability is guaranteed for a much longer term and, on top of that, the potential for appreciation of these homes in the future implies greater profits in the long run.
Whether you own a home or your intention is to buy an apartment to rent, Housfy Rental offers comprehensive rental management that guarantees the collection of rent every month and also resolves any incident with the tenant. This way, you only worry about receiving the performance each month from your couch.
You have doubts? Contact a real estate advisor to explain it to you.
