Investment Property in Pontevedra

investment property in espana

Buying Investment Property in Pontevedra?

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

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

Once these properties have been renovated and rented then investors in Pontevedra 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 Pontevedra or elsewhere.

How easy is it to buy investment property in Pontevedra?

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

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

Map of Pontevedra

Pontevedra (Galician: [ˌpontɪˈβɛðɾɐ], Spanish: [ponteˈβeðɾa]) is a Spanish city in the north-west of the Iberian Peninsula. It is the capital of both the Comarca (County) and Province of Pontevedra, and of the Rias Baixas in Galicia. It is also the capital of its own municipality which is often considered an extension of the actual city.

The city is best known for its urban planning, pedestrianisation and the charm of its old town. In recent years, it has been awarded several international awards for its urban quality and quality of life, accessibility and urban mobility policy, like the international European Intermodes Urban Mobility Award in 2013, the 2014 Dubai International Best Practices Award for Sustainable Development awarded by UN-Habitat in partnership with Dubai Municipality and the Excellence Award of the center for Active Design in New York City in 2015, among others. The city also won the European Commission’s first prize for urban safety in 2020. Pontevedra’s car-free center helped transform it into one of the most accessible European cities, leading to various European and American studies of its exemplary urban planning being carried out in recent years.

Surrounded by hills, the city is located on the edge of an estuary at the mouth of the Lérez river by the sea, at the end of the Ria de Pontevedra, in the heart of the Rías Baixas. An economic centre and tourist destination, with a population of 83,260 in 2020, it is at the head of an metropolitan area around its Ria of more than 200,000 inhabitants comprising the municipalities of Poio, Marín, Sanxenxo, Bueu, Vilaboa, Cerdedo-Cotobade, Ponte Caldelas, Barro and Soutomaior.

Pontevedra is the second city in Galicia for its rich heritage, only after Santiago de Compostela. A city of art and history, the city is known as The Good City (name attributed by the French author Jean Froissart in his Chronicles in the 14th century) or The City of the Lérez. The city is also an important stopover on the Portuguese Way path of the Camino de Santiago: the circular church of the Pilgrim Virgin has a floor plan in the shape of a scallop shell and there are scallop shells sculpted in the arches of the medieval Burgo Bridge.

Pontevedra city has an important group of monumental buildings, including the Basilica of Saint Mary Major (16th century) with its plateresque Renaissance façade, the Baroque Church of the Pilgrim Virgin (18th century) with its rounded façade, the ruins of the Gothic Convent of San Domingo (13th century), the Gothic Church of San Francisco (13th century), the Baroque Church of San Bartholomew (end of the 17th century) and the Gothic Convent of Santa Clare (14th century). Its old town contains numerous coat of arms houses (the 15th century House of the Bells or the 18th century García Flórez Palace), mansions – the Mendoza Mansion, Villa Pilar – as well as old palaces such as the 18th century Mugartegui Palace, which is now the headquarters of the Rias Baixas Wine Regulatory Council, or the Counts of Maceda Palace, which is now a Parador. Another major symbol of the city is the Ravachol Parrot, whose statue is in the city centre. The city also has a marina close to its historic centre. At present, Pontevedra is a city in full revival. It has become the flagship city of the network of walkable cities and one of the cities in the world where children live best, known as The City of Children.

Pontevedra is an important administrative centre. The city is marked by a strong presence of administrative and justice services. Pontevedra is the seat of the Provincial Deputation (equivalent to the General Provincial Council), the prefecture (Subdelegación del Gobierno) of the province of Pontevedra as well as the Palace of Justice and the provincial district court (Audiencia Provincial), the provincial police station and the provincial administrative offices.

Making Money on Investment Property in Pontevedra

The best way to make money on Pontevedra 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 Pontevedra

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

Types of investment property in Pontevedra

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

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

Types of property investment deals in Pontevedra

The main types of property deals in Pontevedra are:

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

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

Buy to hold in Pontevedra

Long-term rental property in Pontevedra 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 Pontevedra 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 Pontevedra 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 Pontevedra 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 Pontevedra 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 Pontevedra 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 Pontevedra property to Holiday Accommodation

For property investors in Pontevedra, 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 Pontevedra and then converting these homes into serviced apartments to maximize yield.

The types of property used for serviced accommodation in Pontevedra 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 Pontevedra 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 Pontevedra

  • 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 Pontevedra
  • 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 Pontevedra
  • 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 Pontevedra 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.

investment property in espana

investment property in {es}