Homeowners, emotions, and of course, the money they have invested in it will likely determine the overall value of the property. Especially if your retirement is near, you might be thinking of the property as a way to increase your income potential. But the problem comes when you don’t know where to start and how to evaluate the property’s value to make a better-informed decision.
Whenever you’re making a property investment, you shouldn’t overlook to focus on your immediate needs as well as future financial obligations. Understanding how to evaluate your property’s rental and resale value is important to garner a higher return on investment. There is a number of ways in which you can evaluate the actual worth of your property.
Let’s see some crucial factors for property evaluation to garner good returns on your investment.
1. FOCUS ON LONG-TERM REWARDS
Buying a property in Spain, especially the Costa Blanca region is a profitable long-term investment. Spain’s capital gain tax is more than 20% that abandons any short-term benefits you own. Keep in mind that cost doesn’t equal value, a good starting point can be land, construction, taxes, permission, and professional fees.
2. UNDERSTAND YOUR NUMBERS
When you are considering property as a rental evaluation, you should make an in-depth assessment of your financial potential to serve as a primary step of an additional source of income. It gives you a clear picture of the price range and other costs and responsibilities that come along with leasing out the property.
Many investors spend plenty of time running numbers without deciding on what and where to buy a property. It is necessary to invest time finding a property in an ideal location to assess each property for its desirable value.
3. CONSIDER SOME METRICS
Firstly, you should look into mortgage options, down payment requirements and see where owners will reside. If you are seeking a quick way to identify whether an area is a good opportunity, calculate the price-to-rent ratio. If you receive a number under 15, it is great buying a property in that area. If it is above 20, you should move ahead and rent instead.
4. LOCATION IS IMPORTANT
You should always choose to buy a property in a location that will attract tenants after calculating the price/rent ratio. Properties closer to beautiful beaches and necessary amenities should be on top of your list because tourists who head to the area are likely to pay for maximum comfort on holiday.
5. CONSULT THE EXPERTS
Last but not the least, expert real estate agents can be a useful resource to evaluate the worth of a property. They carry local knowledge of the real estate market and will help you calculate metrics linked with mortgages, maintenance costs, and more. This can help you find a property that suits your financial health and reach your investment goals.
If you’re planning to buy property in Costa Blanca and other regions of Spain, our professional team will ensure to narrow down the best options and give you peace of mind while knowing your investment goals are in the caring hands.
If you wish to receive more information, do not hesitate to contact us.
Phone: +34 966 397 944
