25 Jul Looking for a bargain in Madrid
RAE. Def. Something valuable or appreciable acquired at a very low price or with little effort.
When we talk about “bargain” in the real estate market, what are we talking about? It usually means to buy something, which we find interesting, at a good price. Interesting for what? Interesting to live in? Interesting for its profitability?
That is the key, what will the house be used for? If we think about our next home, we will surely be more demanding and we won’t be willing to give up certain characteristics such as the size of the rooms, orientation, brightness, floor height or location. But if we want it for short or long term rentals, the analysis is different, we won’t be so picky and we’ll surely find renters for almost any investment. In this case we should analyze the rental market of the area and be aware of the limitations of the house, if the calculation of the estimated profitability coincides with our expectations, then come on.
Giving up on certain aspects can be a good option if we want to buy in the centre and find something at a low price, but there is another option in which we may only have to give up what we normally define as ‘good location’, and is buying in neighborhoods outside the most demanded areas of the city.
In Madrid, there are areas outside the M30 ring where you can get very high returns, buy at low prices with acceptable typologies and good rental possibilities. It may not be the home of our dreams but it could be the investment that will help us to reach another dream.
If we want to invest, we should buy rationally rather than emotional, we will surely find different options. If we’re looking for our home for the next years, forget about bargains, you won’t be willing to make too many concessions.
In short, if I’m looking for a bargain, that is, if I want a valuable house at a low price, yes, it is possible, depending on what you want the house for. If you want to buy as an investment, then it can fit.