Tips for investors - how to identify profitable opportunities in real estate

When it comes to choosing what to invest our money in, there are many options available to us. However, the one that has passed the test of time is the investment icon par excellence: real estate. That is why we receive constant inquiries about how to do it correctly and with the least possible risk. To answer all those questions you have asked yourself so many times, today we answer how to invest in Valencia apartments strategically. Join us!

Opening the portal to the world of investment in Valencia apartments

Buying a penthouse in Valencia is not the same as acquiring it for investment. While when taking a step back in the purchase of a home for own use we do not care so much about losing money to improve our quality of life, in investments it is quite the opposite. A mistake when investing in the purchase of apartments in Valencia can throw overboard our project of living on rentals. For this reason, it is essential to be familiar with the steps that every real estate investment requires, which we present below:

Define your objectives

Real estate investment can pursue two macro objectives:

• Receiving monthly rents
• Long-term capital appreciation

Before starting the search for opportunities in the real estate market, it is essential to define the goal we wish to achieve.

If you are looking for monthly rental income, it is important to be informed about current trends and the ten-year forecast of what the tenant is looking for. This will allow you to focus on a competitive Valencia penthouse that you can live in without worrying that it will be vacant for a long period of time.

When long-term capital appreciation is sought, the quality of the construction will play a crucial role. In these cases, it is recommended to opt for a new Valencia building, since it will meet all the sustainability requirements that will be unavoidably mandatory in a very short time.

               Performance analysis

Buying apartments in Valencia for investment purposes requires very different steps from those we would follow if we were looking for a home for personal or family use. In the case of investments, personal tastes do not matter at all, but we will need to analyze the historical performance of the property to be purchased.

Such analysis involves knowing:

• Rental yield
• Operating expenses
• Taxes

That is, you will need to know what is the rate of return on rent to be received, which is obtained once you have calculated the total cost of buying an apartment in Valencia, including the sale price and management fees, and knowing the monthly price of the rental fee that you can receive for that house. But this is not the end of the matter, you also need to subtract from the total amount of the annual rent the annual taxes of the property and the maintenance costs.

               Detection of possible structural problems

Buying an apartment in Valencia without having obtained a professional report from an architect in order to detect possible building problems related to the construction and to the habilitation of the property for housing or commercial premises, is not an investment, but a gamble.

There are many homes that have hidden defects, which can be a high price to pay over time if the property is not suitable to be rented without first going through a series of costly reforms.

               Diversification

The best way to mitigate investment risks when buying an apartment in Valencia is not to invest all the resources available for the investment in a single place if it is possible to acquire several real estate properties with that capital.

Choose different neighborhoods in which to buy apartments Valencia, as well as various formats of housing, is a tip that we offer from our vast experience as luxury real estate Valencia. In this way, if a market forecast fails and the area or the structure of the property does not have the acceptance that at first thought they would have, your income will be protected through the other properties that you will have.

               Learning to see before it happens

Becoming an independent real estate investor will depend to a large extent on developing your ability to anticipate what will happen. That is to say, if you manage to see a prosperous neighborhood where there is nothing today, and you are right in your forecast, because you have used strategic vision, then you will have become a real estate investor.

The key to this business is the anticipation with as much time as possible. Knowing how to detect that a street will be paved long before it happens and being clear that an unpopulated or declining area will be a luxury urbanization, is what will allow you to buy an apartment in Valencia at a very convenient price, and then get the highest profitability imaginable from its rent or a privileged profit in the case of its sale.

               Detects society's problems

One day it occurred to someone that people are stressed by traffic jams, that our jobs are dozens of kilometers away from our homes, and that living in large housing developments means giving up green spaces and recreational areas. Fortunately, this person did more than just think about it: he put forward an idea, and he did it to none other than the mayor of Paris, who welcomed it with great enthusiasm and moved the pieces that had to be moved to implement it. His name is Carlos Moreno, the urban planner who became famous for his innovative proposal of the fifteen-minute city.

There is still much to be done in our cities, as well as in places that are not, but could well become so. Through observation, by dabbling in social networks to find out what our citizens are lacking and, of course, by means of surveys, it is possible to detect what we are missing. When we have investigated it, we will have a very lucrative investment idea in our hands.

               Searching for trends across borders

Many of the trends that end up becoming new realities emerge in our neighboring countries. Italy, France and Germany are clear examples of this, as well as, well beyond the limits of the Eurozone, the United States. In these territories we can find innovative ways of building and home formats that could be very useful if we have in mind to invest in a new building in Valencia.

               Make your own mark

Imagine that you are thinking of investing in a big project, such as the construction of a hotel complex or a condominium. In these cases, studying the competition is an unavoidable step, but not to make a replica of their projects with your signature underneath, but to adapt their proposals to something that has their unique and irreplaceable stamp. You can devise a new way of selling or renting Valencia apartments, for example, and thus obtain an interesting profitability. Sometimes a small change puts us in front of a proposal of incredible profitability. Just take a look at the history of Airbnb to see for yourself.

Your Valencia real estate agency accompanies you in your investments.

Becoming an experienced real estate investor takes time and, in most cases, many setbacks, which translate into financial losses and moving further and further away from the longed-for financial freedom. So that this does not happen to you, we have put our team of real estate investment advisors at your disposal.

Buying an apartment in Valencia or building a new construction in Valencia is now possible through a series of precise and accurate steps. The success of your investments is our mission. Contact us to start the fantastic path of serious and safe investments, we are waiting to accompany you!