My knowledge of Barcelona property is that it is very expensive and than when you work out the average salary there, how is a commercial landlord to make any money. Keeping in mind
1) High cost of property’s, with a rent that market cannot sustain = low yield.
2) A landlord can subsidise rent for capital gains. I think we all agree that this can be forgotten for while. baring exceptions.
3) (2) above is also affected by the high cost of purchase/sale in Spain. In fact all of EU.
4) If the salaries are a low a point will come when no matter how sincere/honest the tenants are they just wont be able to pay the rent.
5) There may be people who might buy today as a hedge against future
price increases. However if the law is so absurd as tenants having a
right to stay on for five years because the contract was renewed in 11 months etc. They will not be able to move in.
6) If you finally get to the Court and the tenants decides to pay some money and avoid eviction and later in subsequent months stops paying.
You will be back to the Courts with more voids & legal cost and damage to property.
7) I am not for the Bank guarantee that has been talked on the forum in the past as I believe a guarantee is good as its guarantor.
8) The current interest rates are higher than the yield that you can expect forget other cost associated with properties.
I hope that i have not confused the issue any further.