Investing in Spain

[Acreixell]

Hello everybody,

For those looking for real estate investment opportunities, right now in the big cities you could find good deals for Fix&Flip and Buy&Hold.

I would recommend to avoid the coastal side of Spain. Focus on Madrid Barcelona and surroundings.

If you want to discuss about it let me know

 

[Nicholas Wallwork]

Hi @Acreixell why do you say avoid the coastal areas? Surely these make good holiday lets and most overseas buyers will favour being near the beach? Curious to understand your reasons...

Thanks

 

[Acreixell]

Hello @Nicholas Wallwork ,

I'm more on fix&flip or buy&hold (long term family rentals). That kind of bussinesses are easier and better on "wealthy" and populous areas.

But If we are talking about holiday rentals, the main reason that I could give is because is a seasonal bussiness, and it's more Hospitality than RE Bussiness.

These are some cons:
- Low prices due to competence of the hotels and other property owners (Andalucia, Canary islands or Valencia coasts are budget tourism areas).
- Bigger attrition due to different kind of guests.
- You need to live on the spot or have a very efficient property management agency.
- Bigger taxes.

If I had to invest in something like that I would do it on a premium spot. But of course, as more premium the spot is, P/E is larger.

I would like to discuss with you about the issue. What kind of strategy do you follow? I ever open to discover new ways to invest in RE.

 

[Longterminvestor]

I tend to look at things from a long-term perspective and I think eventually the coastal property market will recover strongly. It may take some time but there are some significant returns to be had.

 

[Acreixell]

@Longterminvestor I prefer longterm for stocks. In Spain it happened too much trouble with RE. For example: right now Barcelona and Madrid are becoming very hot, both because a mix of tourism + younger generations prefering to rent + no credit without strong downpayments. Who knows how long this bubble is going to last...

 

[diyhelp]

If Barcelona and Madrid are becoming too expensive, could investors start looking elsewhere for value, i.e. the coast?

 

[Acreixell]

Hello @diyhelp

You could find very good opportunities in some medium size (wealthy) cities. For example: Zaragoza , Bilbao, Valencia, Logrono,... All this cities have university, good public services and are well connected by airport or a big train station.
All of them could be a good option for buy&hold.

 

[Marinaki]

How about Cordoba or Seville?