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My son and daughter both still live at home. The rate of house price growth in their native Edinburgh, coupled with a saturated buy to let market, means that they don’t stand much chance of getting a foothold on the property market.
I suggested that perhaps by pooling their resources they could buy an apartment in Spain together with the intention of keeping a hold of it for at least 5 years. This way they could hopefully let it out for some of the time and also get some enjoyment themselves from the property. They are not unrealistic in hoping that they can cover all their costs, but if they manage to get some rentals, coupled with capital growth then perhaps they could make a worthwhile investment. They may very well even decide to keep it, bearing in mind the tax implications if they were to sell.
Their dad and I have been over property hunting in the past and are well aware of the exaggerated claims in letting potential made by some agents.
With this in mind I thought that I would post a few questions on the forum before they choose a location to start looking.I know that this is the million dollar question everyone asks but here goes…the rental market is saturated in parts of Spain, are there any locations which have more potential for letting than others? Should they even look at the islands instead? Off plan appears to be such a minefield, pehaps they should look for a ready to go re-sale property?
Maybe some of you will think this a totally ridiculous idea, but please say so, I value honesty and certainly do not take offence at it!
Looking forward to your replies. 🙂
Eileen.
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I toured round most of the coastal areas before buying…Costa de la Luz is relatively unspoilt and good value. But I would only buy where we eventually bought on the coast east of Girona…north of the high-rise jungle around tossa and lloret are beautiful bays where Barcelona families have their weekend and summer homes. It is not cheap, but excellent value for money if you want a place with style…and it is relatively easy to let good property, but only during the season. The winter is far colder than in the south and can that wind blow from the mountains. But great walking and golfing country…recommend places such as Pals, Begur, Llfranc and around Palafrugell. Keep this secret to yourself, though.
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I can only speak from personal experience and that is of the costa del sol, Benalmadena area but with the way that off plan has died a bit of a death there are several bargains to be had and as long as you are sensible on rent there are plenty of people looking for places…particularly long term. Need to do your homework and bid low but it works for us!
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Kilkee
Moved here 2 years ago (From TQ12) as we have relatives here for the past 8 years. We are specialist estate agents dealing only with our chosen area (Benalmadena) and find that many people have been lured into the get-rich-quick off plan dream …. which worked very well for many, now find themselves having to complete on properties that they fully intended to sell well before having to pay for them! We have several emails every day from other agents with “distressed” sales so if you are in the market my advise would be to get to know a “proper” estate agent and ask him/her who really needs to sell their off plan “investment” and if it suits go in hard…all offers have to be considered so you never know! Today I have heard of 3 apartments on the costa del sol being sold for exactly what the original purchaser agreed to pay back in 2003. My only word of caution would be oversupply…so that makes it all the more important to pick the right property in the right location.
We personally have both long term lets and short term holiday lets …both sides do pretty well although this year the holiday apartment has been slower. You are right about location, it is everything and to be honest golf or beach are both great …. the important thing is to make sure(as much as you can!!) that the view you have bought will not change!
Hope this helps
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If at some stage they needed to leave home they would have to pay rent on top of the mortgage for the Spanish home so it would be very risky investment
If they bought on a golf development in the main Costa del Sol they may get more than the usual 8-10 weeks summer bookings if they market it well but after housekeeping/laundry etc costs I doubt they would clear more than 5k per year
You really need 3 beds as 2 bed apartments are everywhere for rent which would cost a fair sum on a golf development.
When you way it all up they could probably buy in the UK and rent that out instead for a long let
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