It's been one of the best moments to buy property since 2017. With the financial crisis over, although not everyone is interested in buying a home, the truth is that many have wondered when's the best time to buy and that isn't always an easy question to answer.
We can, however, say that this year, 2019, is a good time to buy.
The real estate market has for some time been showing us that it's a good moment to buy. Still not sure? At Property Buyers by SOMRIE we've carried out a full analysis to clear up all your doubts.
The Euribor is on our side
You've probably heard the Euribor mentioned in the media a million times, well that's because it's the main economic agent that determines whether or not it's a good time to buy property.
Before starting to explain why it's a good time to buy a flat, we're going to briefly explain exactly what the Euribor is.
The Euribor is the type of interest applied to operations between banks in Europe. In other words, the percentage of money we pay the bank for lending us money, and it's always related to the mortgage market.
The type of interest on a mortgage loan is set around two components:
- Reference index: although there are other indexes, it is the most common in Spain.
- Differential: is the fixed amount that is added to the reference index.
The Euribor is currently at a negative value. At -0.112% to be exact. Therefore, with the Euribor in the negative and with increases not expected until 2021, the experts insist that this is the best time to buy property.
Buying to rent, the best moment
Real estate investments have always been in excellent health. There's no other product on the market that matches the returns of real estate products.
For this reason, with rental prices sky-high in cities such as Madrid and Barcelona where the demand for flats is very high, investing in the real estate market can being a great purchase.
Although, like all investments, it's important to determine and prevent certain risks. There's a fundamental aspect when it comes to investing in real estate, and that is choosing the city and neighbourhood we're going to buy in. So, when it comes to going for this option, it's vital to correctly analyse the situation.
We recommend that you always rely on a professional such as a Real Estate Buyer's Agent who knows the market prices and the area they work in well, carries out exhaustive studies of the property, makes investment analyses and accompanies you throughout the purchase process.