Investment Property in Granada

investment property in espana

Buying Investment Property in Granada?

Looking to buy investment property in Granada? It’s a sound choice, yet one that must be executed correctly. This article tells you about buying investment property in Granada, the types of deals available and the likely returns. Remember, buying property in Granada has, on average, yielded in excess of 8% returns per year, and significant capital asset growth.

Buying investment property in Granada with cash outright is also a sure fire hedge against any rise in interest rates. Some investors look to buy properties in need of renovation or a change of purpose. They then renovate those properties and rent them out on a long term or short terms basis. Many investment properties in Granada are purchased by non Spanish Nationals and are either used as a holiday homes or straightforward by and hold investments in Granada.

Once these properties have been renovated and rented then investors in Granada may refinance the property by taking a mortgage over the property at a higher value, using the income to pay the mortgage and reinvesting the profit from the deal into more property in Granada or elsewhere.

How easy is it to buy investment property in Granada?

Buying an investment property in Granada might be more complex, but Spain is a very welcoming country for foreign buyers as foreign ownership of properties in Granada has really helped lift and stabilize the local economy.

The procedures for buying a property in Spain as an expat are relatively straightforward. Before buying, you’ll require a financial number, which can be obtained by visiting a police station with your passport. This is typically processed on the same day for Spanish or EU citizens, but may take a little longer for other nationalities.

Financing an investment property in Granada can be done by cash or mortgage charge. It is often easier for expats to finance the purchase from their home country. Pre 2008 many Spanish banks in Granada would lend to international investors although they have been reluctant to do again, so even now.

What is the average price of investment property in Granada?

Average property costs per square meter in Granada are €1,722 per square meter, representing a solid, year on year growth trajectory of 8%.

Map of Granada

Granada (Spanish: [ɡɾaˈnaða], locally [ɡɾaˈna]) is the capital city of the province of Granada, in the autonomous community of Andalusia, Spain. Granada is located at the foot of the Sierra Nevada mountains, at the confluence of four rivers, the Darro, the Genil, the Monachil and the Beiro. Ascribed to the Vega de Granada comarca, the city sits at an average elevation of 738 m (2,421 ft) above sea level, yet is only one hour by car from the Mediterranean coast, the Costa Tropical. Nearby is the Sierra Nevada Ski Station, where the FIS Alpine World Ski Championships 1996 were held.

In the 2005 national census, the population of the city of Granada proper was 236,982, and the population of the entire urban area was estimated to be 472,638, ranking as the 13th-largest urban area of Spain. About 3.3% of the population did not hold Spanish citizenship, the largest number of these people (31%; or 1% of the total population) coming from South America. Its nearest airport is Federico García Lorca Granada-Jaén Airport.

The area was settled since ancient times by Iberians, Romans, and Visigoths. The current settlement became a major city of Al-Andalus in the 11th century during the Zirid Taifa of Granada. In the 13th century it became the capital of the Emirate of Granada under Nasrid rule, the last Muslim-ruled state in the Iberian Peninsula. Granada was conquered in 1492 by the Catholic Monarchs and progressively transformed into a Christian city over the course of the 16th century.

The Alhambra, a medieval Nasrid citadel and palace, is located in Granada. It is one of the most famous monuments of Islamic architecture and one of the most visited tourist sites in Spain. Islamic-period influence and Moorish architecture are also preserved in the Albaicín neighborhood and other medieval monuments in the city. The 16th century also saw a flourishing of Mudéjar architecture and Renaissance architecture, followed later by Baroque and Churrigueresque styles. Granada is also well known within Spain for the University of Granada which has an estimated 47,000 undergraduate students spread over five different campuses in the city. The pomegranate (in Spanish, granada) is the heraldic device of Granada.

Making Money on Investment Property in Granada

The best way to make money on Granada Property is via an expert international investment fund.

Your Financial Advisor or Accountant won’t bring you the opportunities because of course they won’t receive their greasy commissions.

Investment funds are not even allowed to advertise so you’ll never hear of them unless a friend recommends them.

You will need at least some experience with previous investments to be eligible and of course these funds are extremely picky about the investors they accept. They can afford to be. They don’t need your money, but they can put your money to work for you like never before.

Costs of buying a property in Granada

Fees for buying a property in Granada vary from area-to-area, and many are negotiable – for example, there are no fixed fees for lawyers or estate agents. Buyers must pay the majority of the costs, which are generally as follows:

  • Property transfer tax in Granada: 6–10% (existing properties) / VAT (or IVA) at 10% (new properties in Granada)
  • Notary costs, title deed tax, and land registration fee in Granada: 1–2.5%
  • Legal fees for buying investment property in Granada: 1–2% (including VAT)

The seller usually pays the estate agent fees in Spain. Estate agents usually charge their fees as a percentage, typically around 3% of the final sale price.

Who is the Best Real Estate Agent in Spain?

PRestates is a multi-award winning Luxury Real Estate broker in Granada, with a 18 year track record the agency has been directly or indirectly responsible for the largest volume of transactions in Granada in the past two decades.

Types of investment property in Granada

It is important to understand the main types of Investment Property in Granada

  • Undeveloped land in Granada
  • Commercial property in Granada
  • Residential real estate property in Granada
  • Operating property investment in Granada
  • Distressed property investment in Granada
  • Investing in a World Class fund with activities in Spain, and in Granada

Types of property investment deals in Granada

The main types of property deals in Granada are:

  • Buy to let in Granada
  • Buy to hold
  • Serviced Accommodation in Granada
  • Vacation Rentals in Granada
  • Commercial Property in Granada

The Most Successful Property Investment Fund 2020 : Click Image to Download Prospectus

Buy to hold in Granada

Long-term rental property in Granada is widely considered one of the best ways to diversify your property portfolio. So buying and owning property means much more than just investing in a single property, it can bring you a variety of benefits, such as access to a variety of investment opportunities and the benefits of long-term ownership.

While some investors in Granada may be confused or intimidated when they start, buying and owning property can be one of the best investments you can make if you do your due diligence before you start.

The rental income from investment property in Granada generates short-term income that can be used to pay off a mortgage or to invest money. The strategy of buying and holding property is one of the most common investment options.

The value of the Granada property will increase over time and the investor will benefit if he is willing to sell it later. The investor benefits from being bought in the expectation that the value of the property will rise over time.

Investors considering a Granada property purchase and holding strategy should do their best to calculate the potential income from renting out the property. The bottom line is that monthly income should exceed the cost of rent in the first year of ownership and annual rental income over the next five years.

If the investor plans to sell the Granada property later, possible profits should also be taken into account. Finally, any losses from taking out a mortgage or other type of property financing must be taken into account, as well as any gains from the sale.

Convert Granada property to Holiday Accommodation

For property investors in Granada, converting a home into a serviced apartment would mean higher rents than the normal rent increase. As a result, many people are buying investment property in Granada and then converting these homes into serviced apartments to maximize yield.

The types of property used for serviced accommodation in Granada are often the same as those you would use to buy to let. Where you have a guaranteed short-term rent, it’s not as rigid as renting out a property.

Lease Granada property to the Worlds Best Rehab

Remedy Wellbeing is a bespoke, luxury treatment center with a significant corporate footprint in Spain. This means they treat just one client at a time in luxury 6* accommodations. All properties used by Remedy Wellbeing are as unique as they are inspiring. If you own or represent some of the most exceptional, unique and luxurious accommodations in Spain, Remedy Wellbeing can be contacted via their dedicated property management company, Physis Realty.

Disadvantages of investing in Serviced Accommodation in Granada

  • Holiday accommodation is more of a business strategy than a property strategy, and the workload is far more intensive.
  • You’ll need to furnish your holiday rental accommodation in Granada
  • You’ll need to clean the rooms and change the sheets every time your guests leave.
  • Who does all the laundry?
  • Who does all the cleaning?
  • Who’s going to do all the work for you in Granada
  • How are the guests actually going to get in?
  • Are you going to have somebody to do a meet and greet?

Buying investment property in Granada to convert into serviced accommodation or holiday lets is not really considered an investment, because the amount of work involved make it a full time job.

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