[Martin S]

Mark

I’ve just joined the site so many thanks for all the informative posts – A truly excellent resource indeed.  I’d like to ask about where you and other members see as a good buy-to-let markets currently? My wife and I are looking to buy an investment property to get us on the Spanish ladder and then moving to Spain in 15+ years time (selling that investment and buying somewhere we’d finally want to live). We don’t have time to invest in the holiday rentals option, so are looking at long term rentals. Naturally priorities are somewhere that have a strong to reasonably sound rental market for long term rents (ideally, but not necessarily only, to expats), but we’d also like to take advantage of low buy prices. Naturally the most desirable areas of Madrid & Barca are where one would expect to find the strongest rental market, but conversely  the lowest discounts and yields (we can afford 100+sqm in Salamanca if necessary but discounts are on the low side).  Anywhere people recommend looking where the rental market is still reasonable and discounts higher?  We’re looking at Valencia (city centre) currently where discounts from the 2007 peak seem high – But rental market and yield?  Any other areas people might suggest? Many thanks.  Martin

[Jonty]

I would strongly recommend both Barcelona and Madrid where there are shortages of good rental properties.

We have lived in Sitges, which is 36 kms from Barcelona and a popular commuter belt and resort in its own right, for 15 years. There is a consistant demad for decent rental properties.

The rental return is not high but should meet a reasonable LTV mortgage and starting from the current low point capital appreciation could be significant on a medium term basis.

when buying look at taking over existing mortgage(s) which can often work out cheaper than starting a new loan. There are no buy to rent mortgages but as long as the rental agreement is properly drawn up, important! then you are reasonably protected. You will need to think about employing a local agent both for sourcing tenants, agreements, references and for property maintenance/inspection in your absence.

see http://www.sitgesproperty.com

[Martin S]

Thanks Jonty, it’s very helpful to receive others input. Appreciated.

[Author]

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