December 3, 2005 at 11:40 am #51403
I am planning moving to spain and buying 3 – 2 bedrooms apartments to let out to golfers and families.
I visited the area last month and was very impressed. The area I am considering is close to the Mar Menor around Alcazares.
Does anyone already have experience of this area, how many weeks a year would you expect to be able to rent out apartments in this area
Any comments and advise apreciated
December 3, 2005 at 1:36 pm #60102
Ian, you would be well advised to look at earlier postings on this site regarding the possibilities of renting properties out in Spain generally, even to golfers. My understanding is that there is a glut of 2-3 bed apts. along the coast that many people cannot let at all, you might find you won’t get the return you expect. Really check it out first before committing to buying, and then there’s the problems and hidden costs associated with buying, also mentioned time after time on this site.
December 3, 2005 at 1:43 pm #60103
I forgot to mention that many agents and developers will tell you what you want to hear about a ‘hot’ investment and ‘you can easily rent out’.
I know someone who now has to complete on a front-line golf development which he can’t re-sell nor rent out due to the over-supply of similar properties.
December 3, 2005 at 8:27 pm #60115
Thanks for your reply
Can I ask if you have been to and have experience of this area, or is your view general of spain itself
All info I can gleem is of great help in my future plans
December 4, 2005 at 12:08 am #60117
I would suggest doing some basic research. Check out some of the rental websites (myvillarenters.com for example) and see how many 2/3 bed appts are being offered for rental in any area. Now look to see how many have weeks actually let.
The area you are looking at curently has about 38 golf course developments including the big daddy of them all Polaris World. PW itself plans to have something like 7 courses on 6 developments with 30,000 properties. The law of supply and demand has to come into play here.
Check out the panic “bargains” being offered on La Manga, the most well known and established golf resort in Murcia
Finally, even if the rental demand for all these properties was there, I don’t think the airports could land enough planes to get the renters in and out.
December 5, 2005 at 2:16 pm #60145
Ian, my knowledge is based on my experiences and those of many others on the C. del Sol and C. Blanca, a huge stretch of coast covering 100s of thousands of properties. I’ve also heard that in new areas like Mar Menor and Almeria generally that are being heavily promoted, people are experiencing similar problems of ‘hard sell’ and promises to rent out that won’t happen because of over-supply by greedy developers and the ‘big’ agents, many ex timeshare and similar to used car salespeople.
December 5, 2005 at 2:32 pm #60148
just to add my two cents worth I bought a golf property two years ago to rent out. In that time I have probably had a total of 20 weeks (this year heavily discounted) and havent even covered the cost of my mortgage – even discounting the icapital element.
Also Golfers dont come in their droves – and the ones that do are usually tempted into the aparthotels that are part of the complex and pushed by the developers of the golf course (because they generally own them)
Also a word of warning – I have had my property on with just about every rental agent within a 20 mile radius and to say they are ubbish is an understatement – they couldnt rent a free week in the caribbean on a nudist beach.
The rental site that I have had most success with is villarenters.com – 80% of my bookings have come from this.
Buy to let in Spain is fraught with frustration and not as profitable as poeple make it out to be – one because short termers arent falling over themselves to get here and long term isnt worth the risk (you could end up with large legal bills and tenants that dont pay the rent)
If you are looking to buy for long term investment then it is a good bet – but as has already been said – there are plenty of bargains to be had – why pay more for ther same thing
December 5, 2005 at 3:46 pm #60149
Hi Vince thanks for your comments.
The apartments I am considering I found myself and not through an agent. They are not on as golf complex as I felt being on a golf complex would limit my market to golfers only and I want to attract families as well.
Out of the bookings you have had, were any of them families or have they been golfers only?
If you were to buy again, would you buy on or off a golf complex?
I have also heard horror stories about rental agents where they let your apartment out with out telling you and pocket all the money. Has this happened to you?
My plan is for long-term investment but I would need rental income to live off. There would be no mortgages on the apartments and the rent would be my income.
Thanks for everyone’s input, it is a great help in the decision process
December 5, 2005 at 6:51 pm #60153
in answer to your questions – nearly all of the rentals havebeen families – I have had two lots of rentals with golfers only – however I dont actually have the place ont he complex – but literally 400M away – it is also 200M from the beach.
The practice of rental agents renting your property out and not telling you is common here although it hasnt happened tome because I used to live below and still live only 5kms away – also my parents live 400M away. I also do not give agents keys unless I knoww them personally – difficult if you dont live here of course but you may be better off finding a property management company who dont do rentals. The basically look after your property and do a key holding service as wlel as clean the property between rentals.
It can be fairly expensive – about €50 per visit for a 2 bed apartment, but worth it because you know they wont be renting your place out and are paid to look after your place.
If I were to buy again would I buy on or off complex. Well having had a lot of experience in buying in Spain now I would follow my original gut insticnt – only buy by the beach in a nice town and only buy an apartment (but not off plan) and not in a development. My original reason for buying this property (it is an adosado and new) is that I was told I could convert it into two apartments (which I did) – So I was going to sell one of them and lie in the other – but I cannot do this legally so it was a pointless excercise.
Personally speakign I think buying on or near a golf complex adds about 20-30% to the price and doesnt give any benefits – if anything it reduces yoru potential market to golfers and their families. Unless you can find a company that specialise in golf rentals I wouldnt bother. Best stick to the beaches – there are moe people want to be within 2 minutes walk of the beach than on a golf course
So in answer to your question I would buy off complex.
As for rental income – well I rented my property out last year for 1200 per week during August (remember it is 2 apartments) and 1000 in July. I had 3 weeks in July and 3 in August – and not much else for the rest of the year. This year I dropped the prices overall right down (and reduced the amount of people it slept form 6 and 4 to, 4 and 2.) I rented out a week in Jan, 2 Feb, 2 Mar, 2 April, 3 May, 2 June, 3 July, 3 August. Prices for July and August 650 per week – only for the 2 bedroom as I had a longer term renter downstairs (a friend)
Something to bear in mind – if your property sleeps 6 you will get large ish families – 2 adults and 3-4 children. I spent a fortune redecorating last year because of dirty walls etc, and had to get the sofas cleaned (they were brand new 6 months earlier)
This year having reduced it to sleep 4 max (ie I removed the sofa bed) I only get couples with one child – usually a teenager or a baby, or two couples. They look after the place much better
It is worth thinking about this as the cost of redecorating/cleaning the place negated any difference in price I may have made. ALso I think you are more likely to get couples looking for long weekends which can be fairly profitable (I woudl say 50% of my bookings have been for 5 days or so out of season) and the amount charged is slightly less than the whole week.
In short I would say if you need to rely on your rental as an income make sure you buy in a very desirable area (have a look around the area and see how busy it is in winter – this will give you some idea) – but I would urge caution if you think you are going to live naything other than a frugal life on your income.
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