How to invest in the real estate market with little money?

One of the questions most asked to those of us who work in the real estate sector is whether it is convenient or if it is convenient or if it can be invested with little money or with a small amount of money  saved without having the ability to continue collecting that sum.  Yes you can. Mainly because at present we can find several properties that in recent years were lowering their values making them accessible to more people.

However, if you are thinking of embarking on an investment of this type it is important that you take into account the advantages and disadvantages. It is essential to pay attention to the type of property, the location and the time that the property has been published. In addition, you have to be  very clear  about what will be the use that you are going to give to the property and also analyze what your economic situation will be after making that investment.
In this article you will find more detailed information on each of these key points to keep in mind that will help you make a decision as safely as possible.

 

Key factors in understanding rising  and falling prices in real estate

To understand why it is currently possible to buy real estate with little money, it is necessary to review the economic situation of the country and  analyze how this influences  the  real estate sector, since having this information and understanding its relationship is the best way to make a decision responsibly and safely.
The different economic crises meant that, in Spain, over the years property prices fluctuated. In the first place, these increased and began to give a good return to those who invested in bricks. Then they began to devalue due in part to the inability of people to buy at the values of the moment and also by the need of the owner to recover the money invested. This meant that a  greater number of people could buy propertieswithout having a large amount of money saved.
From April 2011, after the devaluation that caused wages to fall by approximately 50%, property values fell by about 50%. In this context, even if prices were lower, investing in the real estate market was not always risk-free since it could not be assured the type of return that investment could have in the near future when it comes to having to sell. That is, no one could be sure if at the time of selling the property it would be possible to recover the  initial investment or the return was going to be lower.
It is for this reason that today with 70,000 euros it is possible to buy a small propertythat works as  a holiday home or permanent.

What things should I keep in mind?

When investing in a property it is important to analyze some characteristics that we will see below. On the one hand, you have to think about the location of it, if it is a  good street,  if it has a service nearby or if it is an area with a lot of movement or quieter. All this must be taken into consideration when evaluating whether the price of the property is correct or not.
On the other hand, you have to learn to read the details of the publication of the property, the most important being the time it has been published and the number of visitas that the ad has. If a property has been there for more than a year, it is an alarm to think why it is not sold, although in many cases it is simply because it has a higher value than it corresponds and not because the property has negative characteristics. If this is the case, it is useful to see if the price per square meter in euros can be reduced. 
 With regard to  internet views, these indicate people's interest in  the property, so  if you have less than 10 views per day, that is, less than 300 views per month, it is possible that the  property will not be sold so the price can also be negotiated.
While all this needs to be taken into account when buying the property, it is also important  to think about the future.  If you are buying a property to invest, it is assumed that at some point you will want to sell it, then the question that must be asked is if you can do it easily, if you are going to lose money by doing it or if it will require some type of modification and investment. That reflection can help you lean or has notgas the purchase of that property.
The ease of selling tomorrow for people who do not have great savings capacity or more money to invest is very important for any unforeseen event that may arise. We call this "not   having liquidity", that is, youhave money but invested in a property so you do not have it if youneed  it  . In those cases what usually happens is that the property ends up selling for a much lower value than it was acquired.
However, we must bear in mind that some properties that in Spain were previously € 200,000 can now be found at € 100,000, a big difference that makes us think that it is an ideal time to buy real estate always taking into account the particular situation of each person.

 

Is investing in real estate the safest bet?

It is difficult to ensure that investing in real estate with little money is the safest option due to the constantdecline and rise of prices in the market. This is usually a risk when you do not have more money saved since it does not  allow you to wait for the best time in the market to sell, and in those cases it may be convenient to invest that money in some (investment fund), buying shares in the stock market or even in training courses that allow you to improve your employment situation in the near future to increase your salary.
 
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