Let’s get down to basics and reality.
Based on the past 4 years of renting my 2 bedroom place I know i can achieve an annual rental income of £6,000. (To be fair this has fluctuated between £5,500 and £7,000.)
I pay expenses of £1,800.
I get a net income of £4,200.
I pay Spanish tax of £1,500 (25% of gross income with no allowances as a non resident)
Income after tax: £2,700. In other words a fully furnished 2 bed property would have to cost about £40,000 to £50,000 (6% post tax return?) age interest and annual costs against rental income.
Ashtondav, you are verry, very lucky to get that kind of return from a 2 bedroom apt. Would it be possible to ask you which area is it?
I stayed in Roda Golf over the Summer of 2008 and I paid £150/week at the end of July. And even at that price the 2 bedroom apt. was rented for
about 8 weeks for the first 7 months of 2008 (this is then £1200 for 7 months i.e. at most £3000/year). This would imply an income after tax
of about £1400 i.e 1800 Euros.
Considering that the cheapest apt. there is now 180K Euros, this would be a return of 1%.