Buy to Let Spain. Property for profit and pleasure.
Think there is nothing new in buy-to-let, well think again.
While it is true buy-to-let has been around for many decades proving very popular in the UK, it has somewhat lost its edge when it come to a creditable investment.
The format relied on property appreciation with the letting income covering mortgage and outgoings. As property values increased the relative borrowing to value reduced, that margin was termed as your profit.
There were major inherent problems in the strategy, the main one being, it was set in the long term residential market. When markets start to fall due to international or national pressures, property appreciation slows or stops, money gets more costly and harder to raise. To balance your books you cannot raise rents due to laws controlling rentals rates and as it is set in the residential market there is a finite limit on what can be charged anyway. Put that together with the UK Government placing a higher taxation on revenues and you have a poor performer or even a negative investment.
Now let us take a look at vacation letting set in Southern Spain.
Spain is the worlds second largest tourist destination with a massive demand for tourist accommodation, with Southern Spain, particularly the Marbella region, demanding top end rental rates. A family will happily pay high end rates for a two week stay in a quality modern villa or apartment to achieve that perfect holiday. A villa depending size and location can bring in between one to six thousand euros per week, with apartments between one to two thousand euros per week, with special locations exceeding that.
To help further, new laws have been passed in Andalucia to ensure the standard offered for vacation letting, verified by the issuing of licences following official inspection. Special low rate taxation has also been introduced on vacation revenue for EU residencies, together with ultra low inheritance and gift tax allowing owners to pass their properties on to their beneficiaries for little to no tax in many cases.
Getting it right.
Not all properties make an ideal vacation investment property, there are many factors that can effect performance and as we are dealing in large amounts of money its not something you can try out to see how it goes, you need to get it right from the outset.
We have being in this business since 1982 which is longer than most if not all, we have a selection of top locations offering both villas and apartments which can provide top performance, we can also advise on furnishing though to marketing and promotion of your new investment.
If you are looking for a good investment make contact on any of the methods listed below.