Foreign investment as a formula for increasing credit within and outside our borders

After the real estate summary of the last year 2019 that we issued from Good Finance a few days ago, in this article we will deepen the data referring to the closing of the number of sales transactions, also offering some details about who carried out these operations by nationalities and by autonomous communities.

It is true that home buying and selling transactions began contracting last year in many markets, so in 2020 prices are expected to continue rising but in moderation. At most, they will rise to 2% -3%. Thus, it will remain above the European average and it will not be possible to speak of significant declines, but rather of adjustments.

The situation varies between large cities and more unpopulated areas

The situation varies between large cities and more unpopulated areas

What is expected is that promoter activity increases by about 5%. Overall, of the 500,000 operations that occurred in 2019, about 100,000 of these were carried out by foreigners from outside our country. The data gives a simplified and quick view of the importance of the foreign buyer in the number of operations. That said, it is time to realize the importance and weight of foreign buyers in Spain.

Regarding these operations, it should be noted that such sales are made without credit intervention and without intervention of mortgage loans from Spanish financial institutions, which is undoubtedly perhaps an alternative that would be very welcome for these buyers and that they would welcome with good eyes that could have access to the Spanish mortgage loan, with the adequate collection guarantees required by the entities.

To give an example, imagine that these buyers who did so during 2019 would have wanted to acquire a real estate property with a larger area and have not done so because they have a limited purchase amount. That is, a family acquires a 2-room apartment because it has a sufficient amount of money for the purchase of said goods.

If you are offered the possibility of expanding your purchasing capacity

By granting that differential to acquire a 3-room good. Said client will never miss that opportunity and will not avoid payments and credit obligations.

There is a very important niche of both buyers and direct business, and from Good Finance they understand that to perform a good scoring at the European user level, they must grant a purchase capacity to the holder of the Good Finance certificate with which to access the Spanish credit market regardless of the European country from which it comes.