Spanish Investor’s Experience: A Quick Guide to Analyzing the Housing Market
Pau Anto, a well-known real estate expert, has developed his own system for evaluating the investment potential of apartments. Over the years, he has acquired more than a thousand properties and claims he can determine in just a few minutes whether a property will be profitable. His method relies on clear criteria to avoid wasting time on obviously unprofitable options.
Four Steps to Rapid Assessment
Anto’s first recommendation is to consider only those properties offered at least 15–20% below the average price in the neighborhood. This filter immediately weeds out most options that don’t meet investor requirements. If the price doesn’t fit this condition, he advises moving on to the next listing.
The next step is to calculate potential returns. For traditional rentals, the minimum threshold is 6% annually, while renting out rooms requires at least 10%. If you’re planning to buy, renovate, and resell, the expected profit should be between 20–25%. This approach makes it easy to see how profitable each strategy is.
Accounting for Additional Costs and Liquidity Analysis
The third step is to consider all related expenses. Beyond the property price itself, you must factor in taxes, notary fees, and possible minor repairs. According to Anto, these costs can increase the final transaction amount by roughly 20% over the listed price.
The final stage is analyzing how quickly the property can be executed. It’s important to consider how fast similar apartments are sold or rented out in the chosen area. If the property does not find tenants or buyers within six months, the investor usually prefers to walk away from the deal. He notes that stable returns and a quick rental process are often more important than a high margin if the property remains idle.
Practical tips for investors
Pau Anto’s method works for both experienced market players and newcomers. Its clear filtering system saves time and helps avoid mistakes caused by emotional decisions. The expert emphasizes that success in real estate largely depends on the ability to make quick decisions and accurately assess risks.
