Tips for investors - how to identify profitable opportunities in real estate
When it comes to choosing what to invest our money in, there are many options open to us. However, the one that has stood the test of time is the investment icon par excellence: real estate. That is why we are constantly asked how to do it correctly and with the least possible risk. To answer all those questions you have asked yourself so many times, today we answer how to invest in Valencia flats strategically. Join us!
Opening the portal to the world of investment in flats Valencia
Buying a penthouse in Valencia is not the same as acquiring it for investment purposes. While when taking a step back from buying a home for our own use we do not mind so much losing money to improve our quality of life, in investments it is quite the opposite. A mistake when investing in the purchase of flats in Valencia can ruin our project of living on rents. For this reason, it is essential to familiarise yourself with the steps that any real estate investment requires, which we present below:
Define your objectives
Real estate investment can pursue two macro objectives:
- Receiving monthly rents
- Long-term capital appreciation
Before starting the search for opportunities in the real estate market, it is essential to define the goal we want to achieve.
If you are looking for monthly rental income, it is important to be informed about current trends and the ten-year forecast of what the tenant is looking for. This will allow you to focus on a competitive Valencia penthouse that you can live in without worrying that it will be vacant for a long period of time.
When long-term capital appreciation is sought, the quality of the construction will play a crucial role. In these cases, it is advisable to opt for a new Valencia building, as it will meet all the sustainability requirements that will be unavoidably mandatory in a very short time.
Performance analysis
Buying flats in Valencia for investment purposes requires very different steps to those we would follow if we were looking for a home for personal or family use. In the case of investments, personal tastes do not matter at all, but we will need to analyse the historical performance of the property to be purchased.
Such an analysis involves knowing:
- The rental yield
- Operational expenditure
- Taxes
That is to say, you will need to know the rental rate of return to be received, which is obtained once you have calculated the total cost of buying a flat in Valencia, including the sale price and management fees, and knowing the monthly rental fee that you can receive for that property. But this is not the end of the matter, you also need to subtract the annual property taxes and maintenance costs from the total amount of the annual rent.
Detection of possible structural problems
Buying a flat in Valencia without having obtained a professional report from an architect in order to detect possible building problems related to the construction and to the fitting out of the property as a home or business premises, is not an investment, but a gamble.
There are many properties with hidden defects, which can be a high price to pay over time if the property is not suitable for renting without first undergoing a series of costly renovations.
Diversification
The best way to mitigate investment risks when buying a flat in Valencia is not to invest all the resources available for the investment in one place if it is possible to acquire several real estate properties with that capital.
Choosing different neighbourhoods in which to buy flats in Valencia, as well as different housing formats, is a piece of advice that we offer you from our vast experience as luxury real estate agents in Valencia. This way, if one market forecast fails and the area or property structure is not as popular as you first thought it would be, your income will be protected through the other properties available to you.
Learning to see before it happens
Becoming an independent real estate investor depends to a large extent on developing your ability to anticipate what will happen. In other words, if you can see a thriving neighbourhood where there is nothing today, and you are right in your prediction because you have used strategic vision, then you have become a real estate investor.
The key to this business is to anticipate as far in advance as possible. Knowing how to detect that a street will be paved long before it happens and knowing that an unpopulated or run-down area will become a luxury development is what will allow you to buy a flat in Valencia at a very convenient price, and then get the highest profitability imaginable from its rental or a privileged profit in the case of its sale.
It detects problems in society
One day it occurred to someone to realise that people are stressed by traffic jams, that our jobs are dozens of kilometres from our homes, and that living in large housing estates means giving up green spaces and recreational areas. Fortunately, this person did more than just think about it: he put forward an idea, and he did so to none other than the mayor of Paris, who welcomed it with great enthusiasm and moved the pieces that needed to be moved to implement it. His name is Carlos Moreno, the urban planner who became famous for his innovative proposal for the fifteen-minute city.
There is still much to be done in our cities, as well as in places that are not, but could well become so. Through observation, by dabbling in social media to find out what our citizens are lacking and, of course, through surveys, it is possible to detect what we are missing. Once we have researched this, we will have a very lucrative investment idea on our hands.
Searching for trends across borders
Many of the trends that end up becoming new realities emerge in our neighbouring countries. Italy, France and Germany are clear examples of this, as well as, well beyond the borders of the Eurozone, the United States. In these territories we can find innovative ways of building and home formats that could be very useful if we have in mind to invest in a new home. new construction Valencia.
Make your own mark
Imagine that you are thinking of investing in a big project, such as the construction of a hotel complex or a condominium. In these cases, studying the competition is an unavoidable step, but not to replicate their projects with your signature underneath, but to adapt their proposals to something that has their unique and irreplaceable stamp. You can devise a new way of selling or renting Valencia flats, for example, and thus obtain an interesting profitability. Sometimes a small change brings us face to face with an incredibly profitable proposition. Just take a look at the history of Airbnb to see for yourself.
Your Valencia real estate agent accompanies you in your investments.
Becoming an experienced real estate investor takes time and, in most cases, many setbacks, which result in financial losses and in moving further and further away from the longed-for financial freedom. So that this does not happen to you, we have put our team of property investment advisors at your disposal.
Buy flat Valencia or build a new construction Valencia is now possible through a series of precise and accurate steps. The success of your investments is our mission. Contact us to start on the fantastic path of serious and safe investments, we are waiting to accompany you!
