July 29, 2005 at 1:47 pm #51178
Hi all, me and my business partner have accumulated around £20,000 over two years with the intention of buying a property in Spain to let out. Can anyone with experience agree this amount is realistic to get us a property in the region of £100.000. Is it a good time to step into the buy to let market and are we right in thinking the Costa Blanca or Sol are our best options.
Any advice for two young beginners more than welcome
July 30, 2005 at 6:36 pm #58566
Your plan isnt really realistic in todays climate. Firstly on a property of £100,000 you can expect to pay £10,000 or more in taxes and legal fees. You would get a mortgage of 70% as a non resident whgich leaves you with a balance of £40,000 (70% of £100,000 plus 10% taxes)
With your budget then you would be looking in the region of £50,000 – £60,000 with a mortgage. Thats about 100,000€. Try checking what you will get for that. – Diddly squat in anywhere where people will want to rent out.
For decent rentals only one thing is important – distance form the beach – everything else is secondary but if you buy 40kms from the beach dont expect to get more than a fortnight a year bookings and you wouldnt be able to charge a lot either.
Also you are unlikely to find anything on the main costas – even the costa Calida would set you back €120,000+ for a 2 bed apartment.
Also unlike the UK the long term rental market isnt an attractive option as anything over 11 months and you run the risk of losing your house to the tennant and it will be difficult if not impossible to shift them -= especially if they have children – forget getting your house back. And I speak from bitter experience (I did get my house back in the end but it took a lot of trouble and courst visits to do so.)
Sorry to dampen your ardour but there are a lot of rental properties around and fewer rentals as well as cheaper hotels – all this adds up to a depressed rental market and a depressed property market.
August 1, 2005 at 10:29 pm #58582
Thanks for your honest reply, do you think we should maybe look at a cheaper up and coming country such as Bulgaria, Croatia,etc.. for our property. If so are there any decent websites to provide us with more information?
August 2, 2005 at 9:26 pm #58592
I agree with everything vbtudor said apart from the need to be on the coast.
This info doesn’t apply to people with a £100,000 budget (forget it) but for others….
Inland properties can be very popular. I did a professional photo shoot and website (my job) on a 3 bed villa 45 kms inland and they’ve had 12/14 weeks booked this year advertising their home and website on one holiday rental website, ownersdirect.
I was suprised and so were they as they’ve done better than when they were with a travel company who used to give them a guarateed yearly income (which they’ve had to stop for most of the properties due to competitive pressure).
I’ve seen other inland clients who have also had as much success as those with coastal villas and apartments. The hardest to rent out are 2 bed apartments regardless of where they are
August 3, 2005 at 1:04 pm #58595
I agree with what Vince said except where I concur with what PJA said!
Inland is an option – I’m currently considering a 4/5 bedroom village house on a lovely lake that’s 20 minutes from Granada’s airport and an hour and a half from Malaga’s – less when a nearby dual carriageway is finished in a year or 2. The price is €60,000, and rural get-away-from-it -alls are becoming more and more popular as peoples lives become more stressful or they get to enjoy more than 1 holiday a year. I found it myself while on holiday there – the other tourists there were mostly after some rustic relaxation or were cyclists and hillwalking types.
I’ll have to spend about €20,000 on the house – maybe more if I can’t get a grant to replace the current asbestos roof – maybe less if I take a few weeks out to do some of the work myself. It needs a new kitchen and bathroom, and I would be converting one of the bedrooms to a half covered roof terrace area to enjoy the view. I hate decisions. 🙁
August 3, 2005 at 1:05 pm #58596
Meh. I hate it when I forget to log in!
August 11, 2005 at 9:36 am #58644
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