Since the Real Estate sector of the Balearic Islands and based on the data with which is closed by 2015, it is expected that 2016 will be the year of stabilization in the market thanks to the new boom in housing construction and sustained increase in sales.
Similarly, 2016 begins with improvements in the housing sector such as increasing the number of mortgage loans and the housing price index in the third quarter of 2015, has experienced its biggest rally since 2007. Therefore, we echo the the recommendations to invest successfully in 2016 referred from the General Council of Associations of Real Estate Property Agents of Spain.
One of the main premises is to act slowly but surely, making a well-considered investment having clear ideas and valuing aspects such as the fact that according to the National Institute of Statistics, the price of housing has rebounded 4.5% the third quarter of 2015, and the revaluations trend will continue in 2016. Investment in residential housing is usually more profitable than investing in commercial property. The value of investment property changes depending on the location and extent of the land also should take into account that a larger and future exclusive property will generate more profits.
It’s essential to choose a good area with revaluation prospects. The location of housing is the key factor, it’s important to assess the expectations of rental or sale in the area, depending on whether the investment is long or short term. It is very important to consider aspects such as the number of bedrooms, the availability of lift and garage, the old housing, overall, guidance or sunlight it receives and if the area is quiet or noisy. A house in good condition, fully equipped and with good lighting is much more likely to be rented or sold.
Undoubtedly, as the financing is concerned, we are in an excellent time to get a mortgage loan on favorable terms due to low interest rates and mortgage unleashed war. Even so, it is essential to negotiate to get the best mortgage of the market. Prior to the signing of the purchase, it is advisable to go to the Land Registry in order to gather detailed information on housing as the ability to have outstanding charges and if these are reflected in the contract. Similarly, you can get information about mortgages from the housing responsive; if it is subject to foreclosures or affected by any litigious situation or any procedures under way for urban irregularity.
From Ripoll Mateu Solicitors Mallorca we also advice to check that the seller has no outstanding payments with the community and learn in advance about the costs of the community and the amount of property tax. Also, we remember that the buyer is entitled to review the contract of sale and, especially, the mortgage loan, a few days before signing.
If you are interested in investing in property in Mallorca please contact Ripoll & Mateu Solicitors, with offices in Palma and Pollença, we specialize in real estate law and work with the best banks and real estate on the island, we will be pleased to advise you.