BUYING AN APARTMENT IN TARRAGONA IS A GOOD INVESTMENT
Written by on 17March2015 the category General
Fortunately not everyone has been severely affected by the crisis. Small and medium savers are those who are buying flats in Tarragona to rent them as a form of investment.
Since banks have had to go through a process of reorganization and reorientation of their business strategies to correct errors, clean up their image and abide by the recommendations of the Bank of Spain to make further provisions, savers and investors have found that buying an apartment for rent it can put a higher return than the offered by many of today's financial products:
Profitability provided by bank deposits is around 1.5%; the interest average paid by the Treasury in the last auction of 10-year bonds in 2014 is 1.73%; while the profitability of rental raises a 5%. No bank deposit is offering that.
In this line, the Ministry of Public Works data confirm that renting out your empty properties is profitable. There is an indicator called 'Gross Rental Yield', which is the percentage obtained by dividing the annual rental fee of housing between the selling price. In short, it can tell us whether if it is worth renting our flat in Tarragona or not. According to Centre for Housing data and Land Development Ministry, the gross rental yield maintained an upward trend since early 2010, while the General Price Index (IGP *) on private housing Sales has fallen by 34% in seven and a half years.