Main myths about real estate investments

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The real estate market has long been associated with reliability, stability, and the prospect of passive income. Advertising brochures and stories of successful investors shape the image of an ideal investment. However, in reality, many misconceptions hinder making an informed decision. These myths about real estate investments lead to incorrect assessment of income and expenses, blind faith in eternal price growth, and ignoring risks. A professional approach begins with dispelling illusions and moving on to the dry logic of numbers, documents, and the market.

Myth #1: Real estate always appreciates in value

Debunking the myth of real estate investments: the market is cyclical. Even in countries with stable economies, such as Germany or Canada, declines of 8 to 30% over a decade are recorded. In Russia, in 2015, apartments in rubles became more expensive, but in dollars, they halved in value. In the Moscow new construction market in 2023, stagnation was recorded: the price per square meter increased by less than 2%, with inflation at 11%.

Real reasons for deviations:

Market saturation.
Increase in housing supply.
Rise in the key rate of the Central Bank of Russia (in 2024 — up to 16%).
Tightening of mortgage conditions.

Myths about real estate investments often rely on the idea of endless growth. In reality, profitability without considering depreciation and inflation often does not exceed 3–5% per annum.

Myth #2: Rental income provides stable passive income

Renting out property is not always passive. Managing an apartment requires time, legal knowledge, and oversight. Vacancies, property damage, repair costs, non-payment — are common occurrences even in “liquid” locations.

Calculation example (Moscow, 2025):

Apartment cost 12.5 million ₽ (one-bedroom in a comfort-class residential complex).
Rental income 45,000 ₽/month or 540,000 ₽/year.
Expenses: taxes — 78,000 ₽, vacancy — 2 months (-90,000 ₽), repairs — 50,000 ₽, maintenance — 18,000 ₽.

Net income: 540,000 – 78,000 – 90,000 – 50,000 – 18,000 = 304,000 ₽ → yield ≈ 2.43% per annum. Conclusion: myths about real estate investments ignore real operational expenses, which consume a significant portion of the profit.

Myth #3: Investing in studios is always more profitable

Small size does not mean high profitability. Studios generate more income per square meter, but have lower liquidity, higher wear and tear, and more risks of vacancies.

Indicators for 2025 (Saint Petersburg):

Studio: 27 m², price — 5.3 million ₽, rent — 30,000 ₽.
One-bedroom apartment: 43 m², price — 7.9 million ₽, rent — 48,000 ₽.

Comparison:

Studio: yield — 6.7% (gross), but longer vacancies (on average 3 months).
One-bedroom apartment: yield — 6.1%, but higher demand for long-term rentals and families.

Risk factor: studios often fall into the economy segment with less financial stability of tenants.

Myth #4: Real estate investments are risk-free

Myths about real estate investments conceal many risks — legal, market, and infrastructural.

Real loss zones:

Developer goes bankrupt (example: Urban Group, 2018 — 14,000 equity holders affected).
Property not completed — need for lawsuits, compensations, shared equity construction fund.
Area loses attractiveness — changes in transport routes, emergence of industrial zones.
Property tax increase (in 2023 — 23% increase in cadastral value).

Conclusion: investments require legal expertise, technical assessment, and analysis of the district’s prospects. Relying on blind “intuition” leads to losses.

Myth #5: Yields of 8–10% are standard

In reality, such yields are only provided by rare deals with discounts, buying at the excavation stage, or participating in renovation. Average rental yield in million-plus cities is 2.5–5.2% per year.

Real cases:

Kazan: new construction, yield — 4.1%.
Krasnodar: secondary market — 2.7%.
Sochi (elite segment): vacancies up to 6 months → actual yield 1.9%.

Comparison: Federal Loan Bonds 26242 with a yield of 12.3% (as of June 2025) are often more profitable in terms of “risk/return” ratio.

Myth #6: Mortgage accelerates investment profitability

In conditions of high interest rates (in 2025 — 16–17%), a mortgage consumes all profitability. Even when rented out, the mortgage payment exceeds the rent.

Example:

Apartment: 9 million ₽.
Down payment: 2.7 million ₽.
Mortgage payment (17% for 20 years): ≈ 123,000 ₽/month.
Rental income: 55,000 ₽/month.

Monthly loss: ≈ -68,000 ₽ + insurance and taxes. Repayment comes from personal funds, not rental income. Conclusion: myths about real estate investments often rely on outdated rates from 2019–2020, ignoring the real cost of money.

Myth #7: You can do everything yourself

Debunking: self-management requires skills of a lawyer, real estate agent, accountant, and contractor. Mistakes in contracts, oversights in tenant evaluation, or incorrectly filed personal income tax declarations are a direct path to losses and fines.

List of key tasks in self-management:

Legal verification of the property.
Preparation of a lease agreement with force majeure clause.
Tax reports — annual declaration.
Control of payments and property maintenance.
Conflict resolution — before going to court.

Saving on an agent often leads to fines, long vacancies, and reduced income.

Myths about real estate investments: logic against illusions

A professional investor does not rely on intuition or rumors. The real market requires calculations, liquidity assessment, risk consideration, and understanding of financial scenarios. Myths about real estate investments conceal systemic errors: underestimation of costs, ignoring depreciation, belief in eternal growth. Profitability is only achieved with a sober approach, discipline, and technical analysis. Only then does real estate truly become a source of income, not a source of problems.

Mortgage in Spain for non-residents: what you need to know

Spain remains one of the most sought-after destinations for real estate acquisition by international buyers. The reasons are obvious – a mild climate, a stable market, and accessible financing. This is especially relevant for those who are not ready to invest the entire sum at once. In this case, a mortgage in Spain for non-residents becomes a convenient and achievable tool for purchasing property.

The country’s financial system offers flexible property purchase schemes involving bank capital. Moreover, almost the same mortgage conditions in Spain are available for foreigners as for the country’s citizens, with some nuances.

How do Spanish financial structures work?

Most major banks in Spain willingly provide loans to foreign citizens. The loan is issued for a specific property selected and evaluated within the established procedure. Leading institutions in the mortgage segment include Banco Sabadell, BBVA, Santander, as well as Unicaja, Bankinter, and CaixaBank. These institutions have ready-made mortgage packages for foreign clients.

It is important to understand that each financial institution independently determines the requirements for borrowers. While general principles are maintained, the details may vary.

Key parameters for obtaining a mortgage in Spain for non-residents

The loan procedure for non-residents has its own rules: a larger initial payment, thorough verification of income sources, and a higher interest rate. The process is carried out in a clear and standard format. Below are the basic parameters defining the deal structure:

term – from 5 to 30 years, most commonly up to 25 years;
down payment – from 30% to 40% of the property value, depending on the type of property and client profile;
interest rates – fixed or variable, averaging from 3.5% to 5.5% annually;
loan currency – euro, with payments to an account in a Spanish bank;
mandatory insurance – property and life of the borrower, in some cases – a loan condition.

The higher the transaction amount and the more stable the client’s financial history, the more favorable requirements the lender offers.

What will the borrower need?

Before submitting an application, it is necessary to gather the required set of documents and ensure that the purchased property meets the financial institution’s requirements. How to get a mortgage in Spain for a non-resident is a question directly related to the client’s readiness for income source verification and transparency. Each application is considered individually, but the basic list of provisions remains almost unchanged:

mortgage documents – passport, NIE (foreigner identification number), income statement, tax return;
bank statements – confirmation of solvency for the last 6-12 months;
property appraisal – conducted by an accredited appraiser approved by the bank;
preliminary purchase agreement – with specified value and transaction conditions;
bank account – mandatory for fund transfers and loan repayment.

All documents must be translated into Spanish with notarization.

Who is eligible for a loan?

A mortgage in Spain for foreigners is suitable for both private buyers and investors planning to rent out the property. The highest activity is shown by citizens of the EU, the UK, CIS countries, and the Middle East. Income level is the main factor in decision-making, not citizenship.

It is possible to purchase apartments, villas, townhouses, or commercial spaces. During the evaluation stage, not only the property’s value is assessed but also its location, liquidity, and legal cleanliness.

Property acquisition with a loan as an investment

Buying property using a bank loan is not only a way to own property in Europe but also a profitable capital placement tool. Purchasing real estate in Spain with a mortgage allows non-residents to maintain liquidity, spreading expenses over a long period.

Moreover, thanks to the stable market, property prices demonstrate long-term growth, making credit investment particularly attractive for those who view real estate as an asset in their investment portfolio.

Choosing a lender

Key players in the market are banks with international reputation and experience in working with foreign clients. Among them are:

Banco Sabadell – offers mortgage products with a fixed rate for 10 years;
BBVA – emphasis on digital support and online application processing;
Santander – a wide range of loans for foreigners and non-residents;
Unicaja – advantageous offers with floating rates;
Bankinter – convenient requirements for buyers without residency;
CaixaBank – comprehensive packages considering rental, investments, and transaction support.

Comparing offers and obtaining preliminary approval are important steps before entering into a deal.

Mortgage in Spain for non-residents: the main points

A mortgage in Spain for non-residents is a transparent and accessible opportunity to acquire real estate in one of the most stable countries in Europe. Purchasing property with bank financing allows investment in housing without tying up all capital at once.

Formal requirements include basic mortgage documents, an initial payment, and income verification. Loan conditions depend on the financial institution and borrower status, but generally remain clear and comparable to European standards.

For those considering buying property abroad, a mortgage in Spain for foreigners is a convenient and advantageous option for personal residence, rental, or long-term investment. With a thoughtful approach and support from an experienced specialist, property acquisition becomes not a stress but a profitable and confident step towards European quality of life!

August 26, 2025

Naturalization Citizenship: Grounds, How to Obtain, and Tips

Are you dreaming of a new home in another country? Naturalization is the most common way to obtain a passport and full citizenship status if you do not have direct roots, marriage with a foreigner, or the opportunity to invest huge sums. This process takes time, patience, and compliance with strict requirements, but it opens the door to new opportunities and rights. In this article, we will discuss in detail the grounds on which citizenship can be obtained by naturalization, what steps need to be taken and how to increase the chances of success.

Citizenship by naturalization: legal grounds

The procedure for obtaining citizenship by naturalization is based on specific conditions stipulated in the law of each country. The starting point is legal stay. Only an officially registered status, including a residence permit and permanent residence, gives the right to start counting down. Spain requires 10 years of legal residence. For immigrants from Latin America, the Philippines, Andorra and Sephardim, the term is reduced to 2 years. An important condition is the continuity of domicile, even for short—term trips outside the country. The legislation also provides for additional criteria: a positive reputation, no criminal record, stable income, proficiency in Spanish and knowledge of the basics of the constitution.

Proving participation: integration and engagement

Citizenship by naturalization is granted not only based on the length of time, but also on the applicant’s involvement in the country’s social and economic life. The naturalized candidate demonstrates integration through employment, tax returns, and participation in educational, social, and cultural programs.

In Spain, the DELE A2 exam confirms basic language proficiency. Additionally, the CCSE test is conducted to assess knowledge of laws, traditions, history, and administrative structures. The applicant provides proof of income, employment contracts, work certificates, and tax returns.

Steps of the process: from the request to the passport

The process is a sequential chain of steps, each of which requires confirmation and official approval. Naturalization citizenship includes:

Obtaining a legal basis for residence — a visa, residence permit or permanent residence.
Accumulation of the required length of residence (for example, 10 years in Spain).
Collection and submission of documents: passport, certificate of non-criminal record, proof of income, lease or property agreement.
Passing a language and civil examination.
Background check, criminal record, tax and immigration history.
Interviews or additional checks are at the discretion of the migration authorities.
Taking the oath of allegiance to a new country.
Obtaining an ID card, passport, and full civil rights.

The financial side: sufficient income and no debts

Financial viability remains one of the key conditions for obtaining citizenship by naturalization by a foreigner. The State considers how much the applicant can provide for himself and not apply for social support. The Spanish authorities take into account:

stable income at least below the minimum threshold;
regular payment of taxes;
no outstanding utility, administrative, or tax obligations.

For families with children, the requirements increase in proportion to the number of dependents.

Problematic factors: mistakes and risks when obtaining citizenship by naturalization

The naturalization process requires precision. Errors in the submission, lack of documents or non-compliance with the minimum criteria lead to a refusal. For example, undeclared trips can lead to a reset of the accumulated length of stay.

Common reasons for refusals:

incomplete documents;
lack of exams;
criminal record;
unreliable data;
insufficient language level.

Naturalization citizenship requires careful attention to all the details. You can fix the error, but the re-process will take at least a year.

Features of citizenship by naturalization in Spain: a detailed analysis of the conditions and the process

Spain offers a path to citizenship through naturalization as a long-term but stable and predictable mechanism for legalization. The country’s legal system combines loyalty towards integrated residents with a high level of formalities. Each stage of the process requires proof of loyalty, inclusion, and compliance with the law.

Documents and conditions: what the Ministry of Internal Affairs checks

Naturalization citizenship in Spain involves not just a legal application, but a full background check, lifestyle assessment, and integration level. The list of mandatory conditions includes:

stable income (availability of an employment contract, business or other source of financing);
continuous residence (departures should not exceed 90 days per year or 6 months in total over the entire period);
a positive tax history (tax returns, missing debts);
a certificate of no criminal record from all countries where the applicant has lived in the last 5 years;
a residence permit in Spain and proof of residence (rental agreement, bills, medical insurance);
DELE A2 and CCSE certificates are exams that test knowledge of the Spanish language and the basics of the legal, political, and cultural system.

In addition to formal criteria, the candidate’s reputation is important, including feedback from employers, participation in local events, courses, and social activism.

Oath and renunciation of previous citizenship

The final stage is the signing of a solemn oath in front of a representative of the Ministry of Justice. From this moment on, the candidate becomes a legal Spanish citizen. The procedure is conducted in the local registry, where the candidate’s consent to the country’s constitutional order, loyalty to the Spanish nation, and renunciation of their previous citizenship are recorded.

However, Spain only allows dual citizenship with a select few countries, including most Latin American nations, as well as Portugal, the Philippines, and Andorra. For citizens of other countries, renouncing their previous citizenship is a mandatory requirement. Exceptions are allowed only if the refusal is officially prohibited by the laws of the country of origin.

Practical advice: how to get citizenship by naturalization without mistakes

Even if the length of stay coincides, an error in one of the points will delay the process for months. Recommendations:

arrange official accommodation from the first day of entry;
maintain stability of residence and income;
take exams in advance;
confirm integration by participating in local projects and courses;
maintain an impeccable reputation;
avoid even administrative offenses;
keep copies of all migration documents.

Only if these conditions are met will the path be completed successfully.

Conclusion

Naturalization citizenship remains a reliable but complex method of legalization. It requires patience, systematic approach, respect for the laws of the host country, and full adaptation to its rhythm. For those seeking to accelerate the process, investments in real estate or business offer an alternative. However, citizenship is not just a document; it is a reflection of one’s genuine contribution to society, respect for its norms, and appreciation of its history.

June 21, 2025