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Buying a Holiday Rental vs a Permanent Apartment?

Buying a Holiday Rental vs a Permanent Apartment?

Old Aug 8th 2016, 9:37 pm
  #16  
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Default Re: Buying a Holiday Rental vs a Permanent Apartment?

Thanks thats good advice. SM
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Old Aug 9th 2016, 8:21 am
  #17  
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Default Re: Buying a Holiday Rental vs a Permanent Apartment?

Originally Posted by Loafing Along
Of course a property bought over 10 years ago would have been at completely different, much lower price. No reason why it should notgive a good return . On the Costa and elsewhere in Spain they just went up and up and until 2008 when the wheels came off . Today the market is probably sitting around 2010 values. Mackiecompany is working with a 2 year horizon.
Think we agree on the advice "Do not buy before you have spent time in the place you intend to live"
The property bought in 2006 has just about recovered all the losses and could now be put on the market for what it was bought for, although the owner might expect to drop 10%. In general, property bought in Spain in 2006 was not bought at a much lower price than it is available for today.

A neighbour of mine sold his apartment recently. He'd had it 14 years from new and got exactly what he paid for it.

That said, things are on the up. He would have struggled to sell it in 2010.
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Old Aug 9th 2016, 8:41 am
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Default Re: Buying a Holiday Rental vs a Permanent Apartment?

Originally Posted by Loafing Along
Today the market is probably sitting around 2010 values
I dont agree with that. I was looking to buy in 2007 and prices are much lower now than then

Property prices in Spain are around the level of 2003-4

Here is a graph to show the price evolution

https://www.idealista.com/news/estad...indicevivienda
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Old Aug 9th 2016, 9:25 am
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Default Re: Buying a Holiday Rental vs a Permanent Apartment?

Originally Posted by mackiecompany
I think I'll clarify what I meant earlier and the options I've looking into.


Option A:
Buy a Holiday home and rent it out, stay there myself twice a year.
Using a Key holding company and pay their fees as well as any tax due.
Then when I'm ready to work Self-employed in Spain move into the rental permanently.

Option B.
Buy a Non Holiday rental and rent it out Long term (6 months) thru a letting agent.
Then when I'm ready to work Self-employed in Spain move into the rental permanently.


I'm 40 now and would like to move to Spain in next 2-3 years, with a view of having clients in Spain and from UK too.

So do you think it's worth bothering with the Holiday rental?

Thanks again
SM

I have the feeling you just want to buy to have some sort of connection to Spain now, but what if you buy the wrong property? You'd be better offer saving up more money and just go on holidays until you really know what you want.
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Old Aug 9th 2016, 9:42 am
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Default Re: Buying a Holiday Rental vs a Permanent Apartment?

I would suggest you think carefully and choose your location wisely. Experienced landlords can make profit. I see many short term (holiday) rentals empty for long periods and others offered at rents where the owner must struggle to cover expenses.

Don't forget to budget for the cost of buying, selling and management fees into your calculations.
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Old Oct 6th 2016, 7:38 am
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Default Re: Buying a Holiday Rental vs a Permanent Apartment?

We bought a rental apartment in Javea (between Alicante and Valencia) two Years ago, while living in Ireland. So far it's very profitable. Even after 1 Year we managed to get a profit. I'm happy to write a blog post on our personal experience with the real numbers (income - costs) that we have. For a more general overview of your potential profit I wrote a post here: <snip>
Some tips:

1. Be sure to know your goal for the property and find one that suits you. For us it is an investment which give us some additional cash next to our day jobs. Therefore we bought an apartment close to the beach in an apartment complex. Rental yield is high, but it's personal whether or not you want to live there yourself.

2. Purchase costs are high. You need a little more than 30% cash to pay tax and get a mortgage. In our case the apartment income covers ALL expenses, including mortgage payments (capital + interest). This means that additional income is not needed to support the apartment once you bought it.

Please let me know if you have any specific questions. I'm happy to share our experiences. I will also write a blog post on our own apartment included the real income and expense numbers to give you a better idea.

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Old Oct 6th 2016, 3:24 pm
  #22  
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Default Re: Buying a Holiday Rental vs a Permanent Apartment?

Originally Posted by TimNL
We bought a rental apartment in Javea (between Alicante and Valencia) two Years ago, while living in Ireland. So far it's very profitable. Even after 1 Year we managed to get a profit. I'm happy to write a blog post on our personal experience with the real numbers (income - costs) that we have. For a more general overview of your potential profit I wrote a post here: <snip>
Hi and a warm welcome to the Spanish forum on BE. Myself and Fred James are the moderators for the Spanish forums whilst BEVS moderates Europe. Moderators are there to ensure that the site runs smoothly within the rules of BE. This is so that members gain the information that they are looking for and find their experiences on the forums to be friendly and worthwhile.

Problems and complaints should always be addressed to a moderator who will look into the matter and deal with it efficiently and fairly. Our members who post in the Spain Forums are usually friendly and helpful with a wealth of knowledge about the issues of living in Spain. I hope that you enjoy your time participating in the forums.

Please let me know if you need any further help.

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Old Oct 7th 2016, 11:40 am
  #23  
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Default Re: Buying a Holiday Rental vs a Permanent Apartment?

Holiday rentals
There are so many and they at so cheap, ask yourself is it worth it? Average for a 2 / 3 bed is 30 to 40€ per night. So many empty even at peak season

Long term rentals
Again is it really worth it average 300 to 400€ per month and the legal paperwork is lengthy.

In both cases repairs / maintenance etc. add costs

My advice if you do buy is keep it for your own holidays use and close friends and family ONLY

If you cannot make mortgage payments without rental income then simply do not buy
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Old Oct 8th 2016, 12:23 pm
  #24  
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Default Re: Buying a Holiday Rental vs a Permanent Apartment?

I rented out an apartment long term i.e 10months which is the normal time & then renewed for several years.I always insisted that my tenant had a legal contract which protects both parties.You get 1 or 2 months rent upfront & made sure the utilities bills were in their name.That way if they default you are not responsible,although you would have to have electricity reconnected.Water though is rarely cut off.I had a big mix of tenants from Romanian,Dutch,S.American ,an Algerian Arab & a gay Scandinavian however I thankfully never had one who either trashed the property or defaulted on the rent.But that might have been because I lived in in an adjacent property.Holiday lets will give you a bigger income but I think a nightmare unless you either pay for cleaning services or are around to supervise yourself.Mine was simply an investment for my grandchild to inherit so I made a modest profit once I paid the community fees,busura,ibi etc.When you do your tax return(renta) you will find you pay around 25% to the govn.Also with a holiday let you have to have respect for your neighbours who might have to suffer loutish behaviour each few weeks.
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