Real estate investment characteristics

Recently, a Spain investor visa program was created to stimulate foreigner capital utilization to help developing the country economic. It means the nation will be benefitted but also businessmen because “real estate investing, even on a very small scale, remains a tried and true means of building an individual’s cash flow and wealth”, as Robert Kiyosaki, famous and prolific American author said.

Buying properties for rental intentions can provide a significant amount of regular income, while at the same time you grow wealthier by natural long-term place revaluation. This sort of constructions can be residential (single or multifamily spots) or commercial, which includes independent stores, office buildings, commercial centers, factories, etc. 

Most important real estate characteristics

Spain investor visa program
Spain investor visa program

To get familiar with real estate investments is needed in order to plan the best strategy and to help you to avoid common mistakes that can conduct to a money waste. Keep in mind these details:

  • Durability. Real estate investments are exceptionally long-lasting and capable to make multi-generational richness. They never get old, it means you can buy and resell in a short time or keep them for many years. Your decision could depend on many factors; in the case of Spanish golden visa you will keep the residence as long as the outlay is maintained.   
  • Transparency. Buying a place is a risky operation in the sense that seller can be ignorant or withhold important information about hidden vices. Consequently, you must contract handyman experts to make deep inspections on piping, electricity system, foundations, thermal isolation, roof, etc.
  • Heterogeneity. Each property is distinctive in terms of geographical location, kind of structure, neighborhood facilities, etc. Pay attention to the community knowledge to be able to get the best and most profitable options and be prepared, simultaneously, to offer appropriate conditions to your clients.   
  • Illiquid. This attribute means it cannot be quickly sold without some economical loss. That is, it takes a considerable time and effort to select, purchase, refurbish and resell. And in the case you get a rental income from signing a tenant contract, it could be even longer. Illiquidity is a good characteristic because it makes this kind of business more stable and appreciated for long-term shareholders.

Finally, real estate investments have elevated set up costs. In the case of Spain investor visa program the amount is 500.000 Euros, meaning that “it takes money to make money” as the old quote says. On the other hand, the business is so profitable and advantageous that you will be greatly benefitted taking it; only make sure you are working with the best local advisors, so that, you can get the maximum profit.