Investing Through Mortgages: A Smart and Profitable Strategy

13 December, 2023 | M Aparicio

Currently, we live in a very complex, dynamic, and continuously changing society where investment opportunities also multiply and become more sophisticated. One of the standout means of investment in today’s financial landscape is the mortgage.

From Hipotecas Plus, we are going to address the topic of mortgaging to invest, the best idea.

We will provide you with information and a practical example related to the idea of taking out a mortgage as an investment strategy.

Conditions for a Profitable Investment

The profitability of a mortgage as an investment goes beyond numbers; it requires a clear vision of the financial landscape. Let’s meticulously address the conditions that make a mortgage a truly prosperous investment.

Price Below Market Value

This is the first point of our strategy of signing a mortgage as a means of investment and, as with all first points, it is fundamental.

It is assumed that if you are in the plan to invest money, and you are going to use the mortgage strategy, it is because you enjoy certain savings and good financial health.

You must act with prudence, intelligence, and carefully measure each of your decisions.

Keep in mind that real estate investment is like a game of chess, where every decision counts significantly.

So, when choosing the property to buy, you should take these ideas into account:

• Finding a property by identifying a price below the market value.

This is where the importance of being prudent and patient comes in.

If the opportunity does not appear right now, you must know how to wait.

We should not be in a hurry, as this can ruin a good opportunity that may suddenly appear in the short term.

Follow the three E rule (EEE)

Wait, Estimate, and Execute the action, in this case, the purchase of a good real estate opportunity.

  1. You wait for a good opportunity, studying the offers that already exist and those that are emerging.
  2. You estimate or calculate your potential profitability.
  3. Finally, after an exhaustive and in-depth study, you purchase it as an investment opportunity.

• Study in detail the growth potential.

The location of your property is a very important factor that will undoubtedly determine the success or failure of your mortgage investment.

For example, if you acquire a property in a picturesque place with tourist appeal, at a good price, it can be an excellent masterstroke of investment.

On the contrary, if you invest in a less fortunate location, experiencing a decline in terms of economic development or real estate demand, the possibilities of return on your investment can be drastically reduced, making your chances of success quite scarce.

• Pay close attention to sustained tourist demand

This is also a crucial point.

If the tourist demand is limited to a single seasonal period, your property will not be as valuable as one that always attracts tourists.

For example, if you want to earn a return on your property through renting, you may not achieve continuous profitability, and it might not compensate for the time when your property is in demand. However, if you find a location with constant tourist attraction, with your property aimed at investment, you will likely enjoy sustained profitability.

In-depth Study of the Property to be Mortgaged

Do not buy a property lightly and thoroughly study various points. From Hipotecas Plus, we propose the following characteristics to consider regarding the property intended for mortgaging as an investment strategy:


It is best for your new property to be strategically located near services, transportation, and shops, in a safe neighborhood with growth potential.

Property Condition:

It is important that the property has undergone a thorough inspection, and that it does not have structural problems, with a good maintenance history and good construction quality.

Property Features:

A good and functional layout with modern facilities makes the property more attractive. It is important that it has the potential for improvement or expansion in the future.

Renovations and Updates:

Make sure that there is a record of recent renovations, complying with local regulations and significantly improving the property’s value.

Additional Amenities:

The more amenities and facilities the property has, the more return you can get from it. Here are some examples that will make your property very attractive: features such as an elevator, connection to digital services like Netflix, high-speed Wi-Fi, a space for a computer work area, good furniture…

Rental Potential:

It is very important that the property has a high rental demand in the area. Achieving profitability through renting out your new property can be a very successful investment strategy.

Choosing a Good Mortgage to Enhance Your Investment

This second point is also crucial for a successful investment. If you don’t get a good mortgage with attractive terms, success with your mortgage as an investment tool will be very complex.

It is very important to choose a mortgage with the lowest possible interest rate. Currently, you can obtain fixed-rate mortgages at a rate of 3.5% and variable mortgages referenced to the Euribor with a differential of 0.50%.

We recommend that you consult a mortgage broker to get the best mortgage market conditions. We, at Hipotecas Plus, are established as a mortgage broker, and we can offer you valuable assistance by securing the best personalized mortgage for you.

We will accompany you in all steps, help you avoid mistakes, and achieve the best mortgage conditions for you, such as 100% financing of the appraisal value and a very interesting APR.

Detailed practical example of mortgaging to invest, the best idea: strategic investment in Sitges

Let’s take as an example the purchase of an apartment in Sitges with a mortgage at 4.5%. Monthly payments of 500 euros. The apartment in Sitges will be destined for tourist rental, generating income of 900 euros per month.

The apartment can be improved by equipping it with new amenities and functionalities, if it lacks them: a study space with a computer, connection to digital platforms like Netflix, HBO, or Amazon Prime (the more, the better), Wi-Fi connection, etc. These attractive features can be easily monetized as they will allow you to rent your property at a higher price.

After deducting expenses such as cleaning, community services, and maintenance, we will not only cover the costs, but also obtain extra money every month.

The property will increasingly become yours and less of the bank’s

You will be able to achieve monthly profitability. You will pay off your mortgage with the income from the rent, and the apartment will increasingly become more yours and less of the bank’s.

We have chosen Sitges in our example for being a strategic investment. Sitges is a coastal gem known for its picturesque charm and tourist appeal. It meets all the points we have previously explained: constant tourist demand, well-developed infrastructure, and growth potential make Sitges an exceptional choice.

The monthly mortgage payments, as we mentioned around 500 euros, are easily offset by a solid tourist rental market. With rental rates around 900 euros per month, the investment can easily cover costs and achieve an extra surplus of income month by month.

Through the Idealista portal, you can see the real estate landscape in Sitges. From the portal, you can sort properties by various parameters, such as relevance, recent additions to the real estate portal, or you can also sort the properties from the cheapest to the most expensive.

We have chosen Sitges, but you can choose many other interesting and attractive locations to find a good investment opportunity through a mortgage: Castelldefels, Ronda, Altea, Cadaqués, Frigiliana, Valldemossa, Comillas, Cudillero, Begur, Alcúdia, Peñíscola, …

If you are convinced that investing through a mortgage can be a great idea, go for it! Try to take into account all the information we have provided. We hope, from Hipotecas Plus, to have been of help to you.