Investment in housing continues to be one of the most attractive alternatives for small savers looking to get the greatest return on their capital. According to the latest data from apartments.com, the gross profitability of buying a house and then putting it on the rental market stood at 5.9% at the end of November. The result is slightly above the previous month, when it reached 5.87%, but below the 6.1% a year ago.
“Profitability in Spain experiences a slight increase after several months of decline but still below 6%. The rise in the price of housing for sale could favor the rise in rents, since it is the path that those who are now buying with the intention of putting that property for rent could take,” explained Ferran Font, director of Apartment Studies. .com.
As an example, and taking into account that the average purchase price of a typical 90 m2 residence in Spain was 218,160 euros (2,424 euros/m2) and that the average monthly rent reached 1,073 euros, the owner obtained a total of 12,884 gross annual euros, which gave a gross return on the asset of 5.90%. This percentage varies significantly depending on location and property type, with returns ranging between 7.33% and 3.2%.
The most attractive provincial capital to buy and then rent is Zamora, as it offers a 7.33% profitability. Lleida (7.33%), Teruel (7.21%), Ávila (7.06%), Segovia (7.01%) and Castellón de la Plana (7%) also surpass the 7% barrier. The list continues with Ciudad Real (6.93%), Córdoba (6.89%), Tarragona (6.79%) and Huelva (6.71%).
On the contrary, the cities that offer the lowest returns are Donostia – San Sebastián (3.20%), Palma de Mallorca (4.23%), Pamplona (4.50%), Madrid (4.59%), Cádiz (4.61%), Soria (4.65%), Málaga (4.72%), A Coruña (4.75%), Granada (4.94%) and Valladolid (4.96%). “The two main provincial capitals at the national level have suffered slight variations compared to last October. On the one hand, Madrid increased from 4.54% to 4.59%, while Barcelona fell from 6.63% to 6. 48%”, details the real estate portal.
Experts remind all those who want to invest in housing must take into account the amount of the purchase and sale, the price at which the property will be rented, the charges and taxes involved in the operation and, among other things, maintenance costs.
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