The US dollar is currently equivalent to 0.98 euros, therefore the two currencies are at par. This means that it is cheaper for a North American or Latin American to buy a home in Spain than it was years ago, with which the real estate market has become more attractive for foreign investment. The main channel for investment from Latin America is Madrid: Venezuelans, Mexicans, Colombians and recently more Peruvians, following the political changes in their respective countries. They prefer to buy a house in the capital of Spain than in Miami (USA), one of the main real estate investment markets for all of Latin America.
Julio H. Arguello is a Nicaraguan consultant and entrepreneur with more than 20 years of experience in the real estate sector in his country, Miami and Madrid, and ensures that the interest of Latin Americans and even Americans in owning a home in Madrid is growing. Why Madrid? In addition to being the capital of the country, they like it because of its good communications, both because of the Barajas airport, which has direct flights to practically all the countries of America, and because of public transport.
In addition, Julio insists that the parity of the dollar with the euro means that American investors see Madrid with more interest than Miami, since they can buy bigger houses for the same money.
One of the factors is that interest rates on mortgages in the US already exceed 5%, while the INE places the average interest rate on mortgages in Spain at 2.47%. It should also be noted that, in our country, banks are open to financing the purchase of homes by foreigners, while in the United States the process for a foreigner to obtain a mortgage is more complex and tedious.
On the other hand, another very striking factor for foreigners is the ‘Golden Visa’, the residence permit that is granted to foreigners who invest more than 500,000 euros in housing. In exchange for investing, residence is granted for two years throughout Europe and the possibility of becoming Spanish citizens after those two years.
The Ministry of Foreign Affairs granted 324 ‘golden visas’ in the first half of 2021, while in all of 2020 there were 394 foreigners who obtained that permit.
They are going to raise an investment fund to buy buildings in Madrid
Due to the great interest on the part of Latin American investors to invest in our country and, above all, in Madrid, Arguello leads the raising of an investment fund with the intention of buying about 100 buildings in the capital in the next 10 years between 3 and 10 million euros each property. The objective is to rehabilitate the building, transform it into new high-end homes and sell it.