The advantages of buying a property to rent in Gibraltar
The advantages of buying a property to rent in Gibraltar are many. Buying an apartment to rent it later is a classic real estate investment. Certainly, this operation, if carried out properly and at the right time, can bring a significant economic return to the landlord.
If you want to make a return on your savings, or you have the capacity to borrow and buy a property for the purpose of renting it, you may be considering the option of investing in an apartment to obtain a monthly income.
Investing in Gibraltar
Gibraltar is a pleasant place to live, with a relaxed lifestyle. It has developed well in recent years and has a stable economy. In fact, the unemployment rate is only 1%.
The place is absolutely spectacular. It has a magnificent peninsular landscape and is an ideal destination for many people. It has a warm Mediterranean climate with beautiful pristine sandy beaches and panoramic views.
Gibraltar’s economic activities are based on the service sector, specifically the financial sector, tourism, shipping, and telecommunications, including e-commerce and online gaming.
In the post-pandemic period, when the world has undergone drastic economic change and many countries are still recovering, Gibraltar is one of the few territories that has not only survived the onslaught easily but is recovering rapidly.
Today, Gibraltar remains the top choice of many investors who want to multiply the value of their assets.
What should be taken into account when buying an apartment to rent?
When buying an apartment to rent, you should consider aspects such as the budget to invest in the apartment, the level of rental profitability of the apartments in the same sector, the supply, and demand of apartments for rent, elements such as location, the characteristics of the apartment and the rental contract you want to agree on.
What is an excellent rental yield?
“Excellent” profitability in a new apartment rental is a relative concept, and it will depend on your profile as an owner. However, according to data published by real estate portals, the profitability of renting an apartment should be maintained at around 6%.
Buy to rent a property in Gibraltar
Becoming a buy-to-let property owner is considered to be a successful way to earn a steady income in the short, medium, and long term.
Some of its advantages are:
Profitability.
Past profitability does not guarantee future profitability, however, it is clear that the real estate market is enjoying a good moment from an investment point of view.
Physical asset.
Another advantage offered by housing is that it is a tangible asset, which provides emotional security to the investor. Therefore, even in times of risk or panic in the markets, if this asset loses value or does not offer the expected return, it will not be as negative for the investor as if he were to see the value of his money plummet in the stock market or other assets.
Easier to rent than to sell.
This is especially true in tourist cities, where the supply and demand for rental housing are clearly unbalanced. This means that it is possible to find a tenant in a few days and, on the other hand, finding a buyer may take longer.
Regular income at the end of the month.
If we rent our property and we find a tenant who pays the rent, we will have a monthly income that, a priori, is secure.
One of the best areas in Gibraltar in which to invest is in the city center.
CENTURY 21 GIBRALTAR has for sale a spacious one-bed in Cornwall’s Court measuring 55 sqm. This apartment comes fully furnished with wooden flooring and air-conditioning throughout. Situated on a low floor with lift access and in the heart of town, it makes an ideal starter home or a buy-to-let investment
Contact our sales team and start enjoying the privileges of living in one of the most desirable areas of Gibraltar.
Tel: (+350) 56285000 – Email: Vishal@century21gibraltar.com – Click HERE for more information
