Since 2017 we have been immersed in one of the best times to buy a flat. With the financial crisis now over, most Spanish families have seen how these last few years have become one of the best times to buy a home.
Although all of us are interested in buying an apartment, we are always wondering what will be the best time to buy a home, and the question is not always easy to answer. However, it is a good time to buy a flat in 2020.
The difficulty of opting for a new Melbourne Security Door is clear. However, the real estate market has been showing us for some time that we are facing the best time to buy a home. If you still have doubts, at Deplace we have carried out a small analysis to show you the reality.
Positioned as one of the best times to deal with this situation. We reveal the details of the real estate market. Do you want to know them? Keep reading!
Reasons To Understand If It Is A Good Time To Buy A Flat Buy To Rent, The Right Time
As an investment good, the real estate sector has always shown excellent health. There are few, if any, products on the market capable of demonstrating similar profitability when buying real estate products.
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For this reason, with the rental price reaching historic highs in some of the world’s major cities, buying for rent can be a very good option.
Especially in places like Madrid and Barcelona, where the demand for flats continues to grow, investing in the real estate market can bring us significant benefits in the medium term. Regarding this issue, it is important to determine and anticipate certain risks.
And it is that aspects such as the city in which we choose to carry out the operation, the neighborhood or the prosperity of the place can have important consequences in making this decision. For this reason, when choosing this option, it is vital to correctly analyze the situation.
If we stop to look at prices, we can see that, in certain areas of some of the main cities in Spain, the rental price has risen up to 45%.
For this reason, if we manage to find a home at a good price, we may have found an important vein in terms of profitability.
Euribor Our Great Ally
When determining if it is a good time to buy a property, one of the main agents that determine this issue is the Euribor. Sure you have heard of it many times, but you may still have some doubts about its meaning.
Before starting to explain why it is a good time to buy a flat, we are going to explain what exactly the Euribor is.
It is defined as the interest rate applied to transactions between banks in Europe. That is, it is the percentage of money that is paid to the bank for having lent you money.
Always related to the mortgage market, it is important that we know that it can be both fixed and variable. And, despite the fact that each of these rates may have some more positive aspects than others, it is normal for the bank to offer us the variable interest rate.
Currently, the Euribor is negative, in a figure close to -0.10%. This means that, because banks are not able to release all their liquidity to customers, they end up paying each other to keep the money.
Faced with the eternal question of whether it is a good time to buy a flat, a scenario like this, with the Euribor in negative, can be very good news. Experts say that in 2020, the Euribor will remain in very similar indices.
However, as in any other economic value, you can never know for sure if, indeed, the Euribor is going to be able to maintain these values for a long time, so it is important to take advantage of it when this occurs.
Due to its variability, we are facing one of the best times to buy a home in 2020.
What Should I Look At To Buy A Flat
Although it is a good time to buy a flat, it is important that we give this operation the importance it deserves. For this reason, below we have selected a series of conditions that should determine the purchase of an apartment.
Financial Viability
The purchase of an apartment is one of the largest disbursements that we are going to make at some point in our lives.
Especially when it is a good time to buy a flat. For this reason, financial viability must be the main reason that we must take into account when carrying out such an operation.
Financial viability will be determined, mainly, by our ability to face the amount of the operation. However, it can be strongly influenced by reasons of a very different nature.
And it is that aspects such as age, income, our financial burdens and the savings that we have been able to accumulate in all these years will intervene in it.
It is important to note that, as the experts cite, it is not recommended to invest more than 30% of our income in housing. Therefore, it is vitally important to know what all the expenses that the home you have to buy are going to have.
And it is that, at this point, knowing if it is a good time to buy a flat will not depend only on the price of the mortgage, but also on all the expenses that arise from the purchase and sale of it.
Aspects such as the community, the cost of water and electricity or any other reason will be determined by it.
Where Do You Want To Buy The House?
When it comes to buying a home, the environment in which it is located is going to be very important.
To know if it is a good time to buy a flat, it is important that it is located in a good neighborhood, with a correct geographical location, it is essential if we want to raise our standard of living to a higher level.
Furthermore, if in the future we are going to want to sell or rent it, the enclave in which the home is located is of vital importance.
For this reason, one of the aspects to which we must pay attention to those related to security, the prosperity of the neighborhood or the services that it has around it.
Neighborhood Prosperity
The infrastructures that the neighborhood has will largely determine if we are in a good time to buy a home.
There are neighborhoods that, although they still do not have this series of infrastructures, they are expected to have them, so it may be an ideal time to go ahead and buy the home before prices start to rise.