The purchase of a Home as an investment vs Stocks

8 aspects that question the buy

Friday, January 10, 2014 -

In recent years bulding was positioned as a favorite investment of the Spaniards. Thinking about the price of housing never goes encouraged many people to buy a flat with the intention of selling in the short term to achieve major gains. However, , a home that is not used is a bad investment. Further believes that investing in a home takes more costs to invest in stock market

We can consider eight arguments:

1. housing is a valuable asset but believes that a house that is not used is a bad investment. "You have to paint it, fix it, maintain it, pay for electricity, water, taxes ... If we estimate that the annual maintenance cost is 1% of its value in a hundred years will have spent on maintaining housing an amount equal to what it cost us, "judgment

2. indicates that for rented accommodation had been as profitable as the bag in the last 100 years should have earned an annual return of 6.08%, which is the actual appreciation rate dow jones bag wall street in the last 100 years, including dividends and adjusted for inflation

3. It's Not true that the price of the houses dont goes down

4. All investors can buy shares but is not possible for everyone to purchase houses for them rented.

5. Investing in housing costs leads many to invest in stock market. Input, have to pay for a flat 7% of transfer tax, to which must be added between 1% and 3% in registration fees and notary. In total, the cost ranges between 8% and 10% of the home value. But the fees and expenses to buy shares ranging between 0.2% and 0.5%

6. To buy a good house needed a lot of money. For this reason, many people invest in low-quality housing and unattractive areas, which in the long term ends up not being profitable

7. Housing investment diversification does not allow the majority of investors, they should put all their savings in a single well

8. Manage a portfolio of stocks is easier to manage property assets, says Serrano. Buying or selling a home is more complicated and takes longer to do the same with actions

Question: Buy property in Spain get Citizenship ?

Hello,
I read an article that if I buy a home that costs about $200,000 U.S.D. I'll get automatic Spanish Permanent-Residency which I imagine will lead to Spanish citizenship after a few years even though I'm not European.
Is that true ??
$200,000 U.S.D. is a lot of money for one property, is it possible to buy a few properties that add-up to that amount and receive the same benefit ?


I don't know the amount in US dollars but it was 200.000euros and has now been reduced to 160.000 euros whatever that equates to in USD.
This has come into being because the Spanish governmentis desparate for money from abroad and Eu citizens have stopped flooding into Spain with the result that there are thousands of properties standing empty.
There will probably be some other conditions apart from purchasing property. You may find you need to prove that you have an income from outside Spain.
For example, Cyprus gives non Eu citizens residency if they buy a property for 300.000euros, can prove they have an income of at least 30.000euros per year and 5.000 for each dependant. They also have to deposit 30.000 in Cyprus bank which they must leave there for at least 3 years. All of this money must be proven to come from outside Cyprus.
I would imagine there will be similar conditions to getting residency in Spain if you are a non EU citizen although the amounts may be smaller.