All Forum Posts by: Adrià Creixell

Thanks for the contribution @Kerry Baird.

I found that article that explains about them: https://en.wikipedia.org/wiki/Fergus_and_Judith_Wi...

But, yes, I think that the UK it's a better place to do Buy to Let strategies than Spain. In Spain the banks are limiting the mortgages, many operations are with cash. 

Depends on your income and networth. Two mortgages are possible, but for a standard salaried person it's going to be difficult to get a third mortgage (and more expensive). In the UK, the credit score is relevant, in the rest of Europe, if they think that you're going to be able to repay the mortgage they will lend you up to a maximum of 30-35% of your monthly income.

For example: if a person earns 2000 euros per month, this person will be able only to borrow up to 600 euros on monthly mortgage payments.

Also, it depends on the amount of your own savings that you're investing, is not the same to ask for 50% LTV than 80% LTV.

And not, I don't think that the USA strategies are easily appliable in Europe. You could apply other kind of strategies...

Hello @Andreu Pifarre,

Depends on your income and networth. Normally the banks don't offer mortgages to invest in other countries and if they do is at a higher interest. In the UK, I know, that they offer mortgages to invest in Spain. But is not bussiness as usual.

Let us know if you need help.

Hi @Susie Guerra,

Me and my partners, we are strong in Catalunya and Valencia city (network and knowledge). Let us know if you could help you in anyway.

From my point of view, If I was going to buy  a property to rent it, what I will do is to visit MANY properties, and making really low offers (like 50% discount) on the market/city/area that I'm interested. Doing that you could reach 10% yields or more. But it's time consuming. And if you don't know the city could be risky.

Good luck!

Hello @Susie Guerra

Me and @Erwin Groenendijk, we are succesful investors in Spain. In Barcelona and Madrid you're too late, I think, you need to look in 2nd Tier cities. Bilbao may be an option, but I don't really know how it looks the market over there.

@Usman Masud not intriguing at all. Spain is a country with a declining and ageing population with excess of housing. The average net salary is 1480 Euro per month. 

Do you think that paying 30-50% of your salary on rent is a stable situation?

The reason why we are on maximum yields is because the young generations need to save up to 40k to buy a property of 120.000 Euro.

Real Estate is cyclic, there will be times where the yield of a house will be 4% others that will be 10%. But on time periods of 30 years, is not realistic that the yield that the property will deliver is the one of the higher peak.

If you're looking for 90-100sqm with elevator on the neighbourhoods mentioned, I think that kind of flat could maintain a rent of 500 euro on the long term. Right now this kind of flat is rented for 750 euro.

Then you could expect a consistent 5-6% on 30 years period.

Check the neighbourhoods around the city centre: La Saidia, Patraix, Les Corts,...

Buy as cheap as possible, if it's for long term is better to buy a property without elevator, but with some space to be installed --> 30-40k maximum. 

With that you could reach 7% yields consistenly on time. Of course the yields during the years of this upper trend will be 9-10%, but expect a drop.

I would say that a property without elevator of 30-40k you could expect a rent of 350-400 euros per month, but in few years will drop to 250-300 euros er month.

Just my 2 cents.

Hi @Christina Creighton,

That yields are for long term rentals. We are selling now one of our flips (https://www.idealista.com/inmueble/81685415/), and even with our 20% margin you could make 6%. 

Just buying a distressed property for 80-90.000 euros and doing a  cheap rehab (10.000 euros), total cost of 110-120.000 euros, you get 7%.

Hi,

In Barcelona city is becoming impossible to get that yields. Maybe 4,5% is more accurate. 

In other cities may be possible. I still have my network in Barcelona, but 100% of my operations are in Valencia.

Valencia still cheap and you could get 7-8% without putting to much effort. But you should buy with cash.

Mortgages in spain are low interest, but they give you only 70% LTV.