How to decide which Madrid property is best
Read this article to learn how to define your Madrid property purchase objectives and optimize your real estate purchase.
Emotional investments generally do not lead to good returns
Most people buy Madrid property based upon emotions, rather than clear investment criteria. We have found that the average Madrid property buyer sees a number of properties, then makes a gut decision based upon certain limits. For example, they choose something that is within a certain budget and in a specific neighborhood. They tend to be focused on finding “something,” which often leads to sub-optimal purchases.
Sometimes this works if a buyer is looking for a lifestyle property, but if they are purchasing an investment property, it is very important to have a clear decision making process that yields the maximum possible return on their investment property.
The best investors have simply, clearly defined decision making methods. Although this sounds easy, it is often not. This is particularly true in the Madrid property market because it is complex and often opaque to people that are not familiar with it.
Moving2Madrid views hundreds of apartments every year. We have been working in the Madrid property market for ten years. This gives us access to a large amount of data not available to the general public. This data, combined with our experience, allows us to help our clients craft optimal investment strategies and successfully negotiate their Madrid property purchases.
Do you need help crafting your investment strategy to purchase Madrid property? If so don’t hesitate to arrange a FREE CONSULTATION TODAY to learn how we can add value to your property purchase.
What happens if you don’t have a clear investment strategy?
We find that without a clearly defined investment strategy, the typical Madrid property shopper follows a process like this:
- They come up with a dream property. For example, they want an 80 square meter, two bedroom Madrid property with a terrace, located in the center.
- Once they start looking at properties, they realize they are on a budget! So they start looking at properties they can afford and quickly learn they can’t have everything.
- After seeing a few properties, they suddenly discover that they are willing to buy a smaller apartment than they wanted, as long as it has a terrace.
- Eventually, they discover that only 5% of Madrid properties have terraces. They end up compromising on all of their other goals, just to get the terrace. And usually end up paying more than they should because they were acting emotionally.
This is where the knowledge and expertise of an experienced property shopper comes in.
How do you craft an investment strategy, tailored to the Madrid property market?
Start your search with your objectives in mind
When Moving2Madrid starts working with a client, we start off by doing the following:
- Agree on the three most important property criteria and the best approach to conducting the initial search.
- Agree on the Viewing Date (the date that you come to Madrid to view the selected properties).
- Agree on an objective decision making process according to the criteria laid out in Step 1.
Dynamically re-optimize your criteria to create your own “Personal Decision Formula”
Based upon the criteria laid out in Step 1, our property search expert starts looking for properties that meet your three target criteria and are within your budget. As we present properties to you, we dynamically optimize our search strategy based upon your feedback to the properties we present. We continually ask you to confirm your top three objectives. If they change, based upon the properties we show you, we update your strategy. The end result is a “Personal decision formula” tailored specifically to your needs.
Use your Personal Decision Formula to refine the search
For example, in the above example, our search experts will help you refine the types of properties you need to focus on. They might come back with the following options:
- 90m2 apartments in the center, but without terraces and not refurbished.
- 50m2 apartments with terraces, but with flexibility regarding neighborhoods. However, we do point out that only 5% of apartment with terraces and they are not optimal for obtaining top returns, based upon our data.
- 70 m2 apartments with balconies, optimized to yield maximum return, and with low price to refurbishment premiums.
Arrange to see properties that best match your criteria
Once we have refined your criteria, we develop a short list of properties that best match each of the above three refined criteria (within your budget).
When you visit the properties, the most important thing is to be flexible and keep an open mind. We visit all properties, keeping in mind that we can’t achieve every one of your goals, given the limited apartment stock. The best we can do is see the best properties for each of your three stated criteria. Then, then we analytically compare all of them and decide on the three best suited to meet your objectives.
Negotiaite on your top three properties
We negotiate on all three properties simultaneously. This ensures we get the best deal. It is also important to keep in mind that on average, 30% of the properties that we show to clients are sold within 48 hours after viewing. Thus it is very important not to “put all your eggs in one basket.” If one deal falls through, you will have two more Madrid properties on which to negotiate. This will ensure your time spent in Madrid was valuable and you will fly out owning Madrid property.
TIP: Since the Madrid property market moves quickly, we recommend having all of your paperwork in order before you fly to Madrid. To help, we have compiled this Checklist of things to do before apartment shopping in Madrid.
Do you want to buy Madrid property but don’t know where to start? If so, CONTACT US TODAY and learn how we can guide you through the process.