Investment Property in Jerez de la Frontera

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Buying Investment Property in Jerez de la Frontera?

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

Buying investment property in Jerez de la Frontera 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 Jerez de la Frontera are purchased by non Spanish Nationals and are either used as a holiday homes or straightforward by and hold investments in Jerez de la Frontera.

Once these properties have been renovated and rented then investors in Jerez de la Frontera 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 Jerez de la Frontera or elsewhere.

How easy is it to buy investment property in Jerez de la Frontera?

Buying an investment property in Jerez de la Frontera might be more complex, but Spain is a very welcoming country for foreign buyers as foreign ownership of properties in Jerez de la Frontera 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 Jerez de la Frontera 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 Jerez de la Frontera 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 Jerez de la Frontera?

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

Map of Jerez de la Frontera

Jerez de la Frontera (Spanish pronunciation: [xeˈɾeθ ðe la fɾonˈteɾa]), or simply Jerez (pronounced [xeˈɾeθ]), is a Spanish city and municipality in the province of Cádiz in the autonomous community of Andalusia, in southwestern Spain, located midway between the Atlantic Ocean and the Cádiz Mountains. As of 2020, the city, the largest in the province, had a population of 213,105. It is the fifth largest in Andalusia, and has become the transportation and communications hub of the province, surpassing even Cádiz, the provincial capital, in economic activity. Jerez de la Frontera is also, in terms of land area, the largest municipality in the province, and its sprawling outlying areas are a fertile zone for agriculture. There are also many cattle ranches and horse-breeding operations, as well as a world-renowned wine industry (Xerez).

Currently, Jerez, with 213,105 inhabitants, is the 25th largest city in Spain, the 5th in Andalusia and 1st in the Province of Cádiz. It belongs to the Municipal Association of the Bay of Cádiz (Mancomunidad de Municipios Bahía de Cádiz), the 3rd largest Andalusian metropolitan area and the 12th in Spain, with over 650,000 inhabitants.

Its municipality covers an area of 1,188.14 km (458.74 sq mi) and includes the Los Alcornocales Natural Park and the Sierra de Gibalbín, also known as Montes de Propio de Jerez.

The city is located 12 km (7.46 mi) from the Atlantic Ocean, in Campiña de Jerez, a region suitable for cultivating the vineyards that produce famous sherry. Some famous places in the city are Alcazar of Jerez, Church of San Miguel, Charterhouse of Jerez, the Cathedral of San Salvador.

Since 1987 the Grand Prix motorcycle racing has been held at the Circuito de Jerez in early May. On this weekend, the city welcomes tens of thousands of bikers from around the world. The same circuit has hosted several Formula 1 Grands Prix, including the 1997 final race of the season, which was marred with controversy for a notable high-profile championship-deciding incident. Other popular festivals in the city are Feria de Jerez or the Holy Week in Jerez.

Making Money on Investment Property in Jerez de la Frontera

The best way to make money on Jerez de la Frontera 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 Jerez de la Frontera

Fees for buying a property in Jerez de la Frontera 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 Jerez de la Frontera: 6–10% (existing properties) / VAT (or IVA) at 10% (new properties in Jerez de la Frontera)
  • Notary costs, title deed tax, and land registration fee in Jerez de la Frontera: 1–2.5%
  • Legal fees for buying investment property in Jerez de la Frontera: 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 Jerez de la Frontera, with a 18 year track record the agency has been directly or indirectly responsible for the largest volume of transactions in Jerez de la Frontera in the past two decades.

Types of investment property in Jerez de la Frontera

It is important to understand the main types of Investment Property in Jerez de la Frontera

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

Types of property investment deals in Jerez de la Frontera

The main types of property deals in Jerez de la Frontera are:

  • Buy to let in Jerez de la Frontera
  • Buy to hold
  • Serviced Accommodation in Jerez de la Frontera
  • Vacation Rentals in Jerez de la Frontera
  • Commercial Property in Jerez de la Frontera

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

Buy to hold in Jerez de la Frontera

Long-term rental property in Jerez de la Frontera 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 Jerez de la Frontera 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 Jerez de la Frontera 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 Jerez de la Frontera 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 Jerez de la Frontera 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 Jerez de la Frontera 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 Jerez de la Frontera property to Holiday Accommodation

For property investors in Jerez de la Frontera, 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 Jerez de la Frontera and then converting these homes into serviced apartments to maximize yield.

The types of property used for serviced accommodation in Jerez de la Frontera 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 Jerez de la Frontera 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 Jerez de la Frontera

  • 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 Jerez de la Frontera
  • 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 Jerez de la Frontera
  • 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 Jerez de la Frontera 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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