Instability in the economy and financial system still plagues the markets. While term deposit returns remain low, interest rates on mortgages and commercial loans are rising.
Those who have savings should carefully consider where to invest in light of this in order to avoid losing money due to the high inflation that is still felt. Given its endurance in times of crisis, analysts suggest real estate emerges as a haven in this situation. And renting out a home after purchasing it is still a viable investment option with deep roots in southern Europe. In fact, a recent survey reveals that the countries with the highest interest in this form of saving monetization are Portugal, Spain, and Italy.
According to the experts in real estate investment for rent, at least two out of every three people in the three economies of the Old Continent's south are interested in purchasing homes and then renting them out. The results demonstrate that families in Portugal, Spain, and Italy are significantly more interested in purchasing rental homes than are investors in this industry in other Central European nations.
According to the report, Spain is the only country examined where more than seven out of ten people exhibit interest in investing in rental housing (72%), which is based on a poll of more than 8,100 European inhabitants. Portugal is the next country, where nearly seven out of ten residents are drawn to investing in rental homes (67%). Italy, where 64% of people are interested in operating this kind of business, is in third place.
More than half of those surveyed in the UK, France, and Belgium also indicate they are interested in making profitable real estate investments.
The Netherlands (34%), followed by Germany (41%), are the nations that elicit the least interest in real estate investment.
These figures can be easily explained by the fact that households in southern Europe choose to invest in real estate over other types of investments including short-term savings accounts, stock purchases, and cryptocurrency holdings. Real estate investment is people's first choice in Spain and Portugal. On the other hand, the English and the Dutch favor betting on long-term savings accounts.
In contrast to other financial products, properties continues to be a rewarding long-term investment option with minimal risk. Because of this, interest in the housing market and the real estate sector as a whole has remained high at a time when high inflation is destroying household savings, deposits continue to offer low returns, and equity market volatility has emerged in recent weeks as a result of recent banking turmoil that has alerted markets.
Despite the considerable desire, a certain proportion of Portuguese, Spanish, and Italian families continue to dismiss the idea of purchasing rental properties. Among the justifications given in the study for this lack of interest are:
· Not having enough money to purchase a home;
· Considering the drawbacks of this sort of investment, such as taxes must be paid, potential rent payment defaults, and renters who do not keep up with home maintenance;
· A preference for purchasing a primary residence to a second vacation property;
Experts also found that respondents with lower incomes believed renting out a property was a choice just for those with significant purchasing power.
How much money does it take to buy a house in Portugal to rent it out?
According to experts, there is interest in buying a rental home in our nation. By lowering IRS rates on property income and enacting policies to shield landlords from default situations, the António Costa Government is currently concentrating on increasing the number of homes available for rent through Mais Habitação.
Families must understand the yield on an investment in a Portuguese rental home before moving forward with this type of investment.
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