Investment opportunities in Spain
Franchising is quite popular in different fields in Spain (beauty salons, food, restaurants, bars, travel industry, gyms, car service centers, etc.). Currently, there is a wide range of franchises!
Franchise purchase prices vary depending on the field of activity and brand reputation. Minimum price is about 15,000 euros. The franchises profitability is on averages 20-25%, although there are highly-profitable options (up to 50%).
Two crucial points of franchise purchase should be noted:
- Selection of a suitable franchise (through market research, comparative analysis of different offers based on our experience);
- Careful study of the agreement. Usually, the franchisor provides his own agreement, which consists of general terms. However, sometimes the agreement is subject to the amendments suggested by the buyer (it depends on the brand reputation: the more reputed is the brand, the more difficult it will be to amend the terms of the agreement in the buyer’s favor).
Franchise agreement is a complex contract, which may hide many pitfalls. In this regard it is very important to seriously and critically study the agreement.
REAL ESTATE PURCHASE:
Profitability of real estate renting is lower in comparison with the franchise. However, real estate investments have more advantages: your purchase a safe asset offering you the opportunity to obtain a passive income. .
COMMERCIAL REAL ESTATE:
Purchase of commercial rented real estate is a profitable and stable investment. At present, the commercial real estate profitability varies from 5 to 7.5%. Investment in a commercial rented real estate allows you to get profit as of the first month after the purchase.
Remember, the realtor is not your lawyer. A real estate agency simultaneously represents both parties to the agreement. Therefore the agency acts to a greater extent in its own interests: to conclude the transaction and receive the fees.
PURCHASE OF RESIDENTIAL REAL ESTATE:
Purchase of apartments for further rental is the most traditional method of investment. Currently, the profitability varies form 4% to 5,5%. The actual decrease of the prices for real estate makes this option quite accessible. In the same way as for the purchase of commercial real estate it is not possible to omit independent due diligence (with respect to legal purity of the transaction) and detailed study of the sale and purchase agreement.