All Forum Posts by: Erwin Groenendijk

Hi @Naima Zodros, congrats on the flip 👍. What are you estimating in terms of gross- and net yield on your student rental deal?

Hi @Ruben Garrido, send over a message and let's pick it up from there 👍

Hi @Asif Ali Kabiruddin Rajani,

What we hear a lot from other Americans is that real estate opportunities tend to cost less here in Europe (especially in countries such as Spain where we are active).

A thing to keep in mind though is your tax planning as you will still need to pay taxes based on the US guidelines if I'm not mistaken. 

Search for international people who can explain not only the basics but also culture and expectation differences.

Erwin

Couldn't say it better @Michael Baum.

They don't seem to realize that Barcelona is a world city and that in world cities prices for living in the center go up. Same for Amsterdam, New York, or any big city in the world. 

And I doubt taking out around 10.000 tourist apartments will bring down real estate prices because it hasn't been going down since they stopped giving more licenses a couple of years ago. Again because of the same reason.

The real problem is that more (social/medium priced) housing is needed which the local government hasn't been investing in for the last 1/2 governing period. Their tendency has been to limit activities instead of increasing stock. Madrid has been doing this a lot better for example (the difference between a left and a more right business-oriented governing body in charge). 

It is also important to accept that living in the center of a big city is getting more expensive and that, for the same price, with time it is only possible to live in the 2nd/3rd tier neighbourhoods. 

The economy never stands still and you can not go against it. Even with these limitations.

Hi @Ajwang Rading, you are referring to US lenders correct? There might be some alternative lenders here in Spain also open to finance the project. 

Hi Nikki, in general it is getting more difficult in areas where a lot of licenses have already been requested. Just last week, they announced that there will be a temporary stop in Valencia and the island of Mallorca. The same was announced for Madrid not so long ago and in Barcelona, it hasn't been possible anymore for a couple of years. In Barcelona it would only still be possible if you buy a property that already holds a license however you pay quite a lot more for them. 

That being said, there are still a lot of opportunities to get properties with tourist licenses. We are moving towards where it is still possible to obtain them (normally based on the density of licenses already given) and at the same time where it makes sense investment-wise (attractivity for tourists). 

We are for example now looking at the Costa Blanca below Valencia and Alicante as a city with an international airport. Also other places like Malaga would make sense. Many others are starting to analyse the north of Spain because of climate change.

@Estevan Benavides, check. Could you send me a private message?

Nice to hear 👍 Will reply to you in private 

Hi @Max Alings, yes it is now possible to do the refinancing set-up in Spain. The only thing is that will not allow you to do it as a cash-out refinance, because they only allow you to directly invest the money given in a new property with financing from that bank.

Hi @Shahar Segev, the theoretical part sounds fine (which is the easy part), now it is time for the doing. 

We are also developing many apartments in Valencia so let us know if we can be of any help in the upcoming time.