Looking to buy investment property in Guadalajara? It’s a sound choice, yet one that must be executed correctly. This article tells you about buying investment property in Guadalajara, the types of deals available and the likely returns. Remember, buying property in Guadalajara has, on average, yielded in excess of 8% returns per year, and significant capital asset growth.
Buying investment property in Guadalajara 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 Guadalajara are purchased by non Spanish Nationals and are either used as a holiday homes or straightforward by and hold investments in Guadalajara.
Once these properties have been renovated and rented then investors in Guadalajara 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 Guadalajara or elsewhere.
How easy is it to buy investment property in Guadalajara?
Buying an investment property in Guadalajara might be more complex, but Spain is a very welcoming country for foreign buyers as foreign ownership of properties in Guadalajara 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 Guadalajara 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 Guadalajara 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 Guadalajara?
Average property costs per square meter in Guadalajara are €1,722 per square meter, representing a solid, year on year growth trajectory of 8%.
Map of Guadalajara
Guadalajara ( GWAH-də-lə-HAR-ə, Spanish: [ɡwaðalaˈxaɾa](listen)) is a metropolis in western Mexico and the capital of the state of Jalisco. According to the 2020 census, the city has a population of 1,385,629 people, while the Guadalajara metropolitan area has a population of 5,268,642 people, making it the third-largest metropolitan area in the country. Guadalajara has the second-highest population density in Mexico, with over 10,361 people per square kilometer. Guadalajara is an international center of business, finance, arts, and culture, as well as the economic center of the Bajío region, one of the most productive and developed regions in Latin America.
Guadalajara is the twentieth largest metropolitan area in the Americas and a major Latin American tech hub and financial center. It usually ranks among the 100 most productive and globally competitive cities in the world. Within Mexico, the city is an important center for science, technology, finance, culture, innovation, education, business, and tourism. It is home to numerous landmarks, including Guadalajara Cathedral, the Teatro Degollado, the Templo Expiatorio, the Hospicio Cabañas, and the San Juan de Dios Market—the largest indoor market in Latin America.
Guadalajara was founded on 14 February 1542 by Cristóbal de Oñate, a Basque conquistador, as the capital of the Kingdom of Nueva Galicia, part of the Viceroyalty of New Spain. After 1572, the Royal Audiencia of Guadalajara, previously subordinate to Mexico City, became the only authority in New Spain with autonomy over Nueva Galicia, owing to rapidly growing wealth in the kingdom following the discovery of silver. By the 18th century, Guadalajara had taken its place as Mexico’s second largest city, following mass colonial migrations in the 1720s and 1760s. During the Mexican War of Independence, independence leader Miguel Hidalgo y Costilla established Mexico’s first revolutionary government in Guadalajara in 1810. The city flourished during the Porfiriato, with the advent of the industrial revolution, but its growth was hampered significantly during the Mexican Revolution. In 1929, the Cristero War ended within the confines of the city, when President Plutarco Elías Calles proclaimed the Grito de Guadalajara. The city saw continuous growth throughout the rest of the 20th century, attaining a metro population of 1 million in the 1960s and surpassing 3 million in the 1990s.
Guadalajara is a gamma global city, and one of Mexico’s most important cultural centers. It is home to numerous mainstays of Mexican culture, including Mariachi, Tequila, and Birria and hosts numerous notable events, including the Guadalajara International Film Festival, the most important film festival in Latin America, and the Guadalajara International Book Fair, the largest book fair in the Americas. The city was the American Capital of Culture in 2005 and has hosted numerous global events, including the 1970 FIFA World Cup, the 1986 FIFA World Cup, the 1st Ibero-American Summit in 1991, and the 2011 Pan American Games. The city is home to numerous universities and research institutions, including the University of Guadalajara and the Universidad Autónoma de Guadalajara, two of the highest-ranked universities in Mexico.
Making Money on Investment Property in Guadalajara
The best way to make money on Guadalajara 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 Guadalajara
Fees for buying a property in Guadalajara 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 Guadalajara: 6–10% (existing properties) / VAT (or IVA) at 10% (new properties in Guadalajara)
Notary costs, title deed tax, and land registration fee in Guadalajara: 1–2.5%
Legal fees for buying investment property in Guadalajara: 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 Guadalajara, with a 18 year track record the agency has been directly or indirectly responsible for the largest volume of transactions in Guadalajara in the past two decades.
Types of investment property in Guadalajara
It is important to understand the main types of Investment Property in Guadalajara
Undeveloped land in Guadalajara
Commercial property in Guadalajara
Residential real estate property in Guadalajara
Operating property investment in Guadalajara
Distressed property investment in Guadalajara
Investing in a World Class fund with activities in Spain, and in Guadalajara
Types of property investment deals in Guadalajara
The main types of property deals in Guadalajara are:
The Most Successful Property Investment Fund 2020 : Click Image to Download Prospectus
Buy to hold in Guadalajara
Long-term rental property in Guadalajara 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 Guadalajara 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 Guadalajara 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 Guadalajara 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 Guadalajara 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 Guadalajara 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 Guadalajara property to Holiday Accommodation
For property investors in Guadalajara, 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 Guadalajara and then converting these homes into serviced apartments to maximize yield.
The types of property used for serviced accommodation in Guadalajara 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 Guadalajara 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 Guadalajara
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 Guadalajara
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 Guadalajara
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 Guadalajara 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.