Moving to Barcelona
May 24th 2019, 6:14 pm
#1
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Moving to Barcelona
Hi everyone, I'm looking for advice from anyone who has bought property in Barcelona to rent out to tourists. I'm planning on moving to Barcelona to live with my girlfriend so I need to have a solid source of income until I can find a good job. With my savings I would like to buy a small apartment for renting to tourists, while my girlfriend and I just rent another property to live in. Is this realistic? What would be an average rental income? Would the bank accept possible rental income as proof of earnings for repayment of the mortgage? I have loads of questions on this so hopefully someone has first hand experience they can share. Thanks
May 24th 2019, 7:52 pm
#2
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Re: Moving to Barcelona
I think that there may well be limitations on the type of property you can use for this purpose. There may well be limits on the amount of time each year it can be let out etc. I wish you good fortune but do all the research before making a move.
May 25th 2019, 6:31 am
#3
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Re: Moving to Barcelona
Confused from your post.
If you're buying one apartment with your savings, and renting another - where does the mortgage come in?
If you're buying one apartment with your savings, and renting another - where does the mortgage come in?
May 25th 2019, 6:53 am
#4
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Re: Moving to Barcelona
My savings will only cover the high deposit required for a mortgage and all the fees, the mortgage is for the rental apartment. I want to know how much a rental apartment could earn, so that I know how much I would have to live on until I find a job in Barcelona that pays well.
May 25th 2019, 12:05 pm
#5
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Re: Moving to Barcelona
Sounds awfully high risk to me - a mortgage plus maintenance costs, utilities and other charges to pay on the apartment you buy to rent, plus the cost of advertising and any other business costs, on top of paying rent and potentially insurance and utilities on the apartment you live in.
Wouldn't it be safer to simply rent and live off your savings while you look for a job?
But what do I know about Spain: nothing. I'm just saying that because I know from experience that if you rent out a property for N€ a month, your annual income is never going to be N€ x 12, you're lucky if it comes anywhere close.
As said, you need to find out the rules for holiday lets in Spain.
Re a realistic rent, I'd think the easiest way to find this out is to look on airbnb or other tourist rental websites and see what the going rate seems to be for the level of luxury you would be prepared to put into it?
Wouldn't it be safer to simply rent and live off your savings while you look for a job?
But what do I know about Spain: nothing. I'm just saying that because I know from experience that if you rent out a property for N€ a month, your annual income is never going to be N€ x 12, you're lucky if it comes anywhere close.
As said, you need to find out the rules for holiday lets in Spain.
Re a realistic rent, I'd think the easiest way to find this out is to look on airbnb or other tourist rental websites and see what the going rate seems to be for the level of luxury you would be prepared to put into it?
Last edited by EuroTrash; May 25th 2019 at 12:14 pm.
May 25th 2019, 1:48 pm
#6
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Joined: Jan 2013
Location: Western Australia
Posts: 21,139
Re: Moving to Barcelona
Sounds awfully high risk to me - a mortgage plus maintenance costs, utilities and other charges to pay on the apartment you buy to rent, plus the cost of advertising and any other business costs, on top of paying rent and potentially insurance and utilities on the apartment you live in.
Wouldn't it be safer to simply rent and live off your savings while you look for a job?
But what do I know about Spain: nothing. I'm just saying that because I know from experience that if you rent out a property for N€ a month, your annual income is never going to be N€ x 12, you're lucky if it comes anywhere close.
As said, you need to find out the rules for holiday lets in Spain.
Re a realistic rent, I'd think the easiest way to find this out is to look on airbnb or other tourist rental websites and see what the going rate seems to be for the level of luxury you would be prepared to put into it?
Wouldn't it be safer to simply rent and live off your savings while you look for a job?
But what do I know about Spain: nothing. I'm just saying that because I know from experience that if you rent out a property for N€ a month, your annual income is never going to be N€ x 12, you're lucky if it comes anywhere close.
As said, you need to find out the rules for holiday lets in Spain.
Re a realistic rent, I'd think the easiest way to find this out is to look on airbnb or other tourist rental websites and see what the going rate seems to be for the level of luxury you would be prepared to put into it?
If you haven't done so already, spend a LOT of time checking all the holiday rental sites that offer properties in the location you're buying in. Does the market seem over or under supplied? You can see the availability calendars for each one, which will give you an indication of the rented vs vacant periods. The rent price point you set for your apartment is important, but it's not the only thing to think about.
Holiday properties need to be fully equipped, from furniture to electrical equipment, bed linens, right down to the teaspoons. The furniture and equipment doesn't necessarily need to be high end, unless that's the market you're aiming for, but everything does need to be comfortable, functional, safe and scrupulously clean. The property needs to be close to all the things tourists want - grocery shopping, good transport, restaurants etc. Consider whether you will manage the property yourself, or get an agency to do it. If self-managing then you'll need to advertise, maintain a booking system, be on call 24/7 for emergencies, do the check ins and check outs, ensure the property is thoroughly cleaned between each rental period. Everything in the apartment needs to be well maintained. A poorly managed holiday rental will attract negative reviews, and good reviews are the life blood of this business.
Check the licencing requirements to run a holiday let in your area. Make sure you know what type of insurance you require.
If you buy the right property for the right price in the right location, if you provide a pleasant experience for your guests, run the property professionally and keep it well maintained, then there's no reason you can't make a profit from it. However, you need to research, research, research prior to jumping in, and to understand what's involved. Best of luck.
May 25th 2019, 2:21 pm
#7
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Re: Moving to Barcelona
In addition to the excellent advice from EuroTrash, you need to factor in the fact that your holiday apartment is unlikely to be rented 52 weeks per year.
If you haven't done so already, spend a LOT of time checking all the holiday rental sites that offer properties in the location you're buying in. Does the market seem over or under supplied? You can see the availability calendars for each one, which will give you an indication of the rented vs vacant periods. The rent price point you set for your apartment is important, but it's not the only thing to think about.
Holiday properties need to be fully equipped, from furniture to electrical equipment, bed linens, right down to the teaspoons. The furniture and equipment doesn't necessarily need to be high end, unless that's the market you're aiming for, but everything does need to be comfortable, functional, safe and scrupulously clean. The property needs to be close to all the things tourists want - grocery shopping, good transport, restaurants etc. Consider whether you will manage the property yourself, or get an agency to do it. If self-managing then you'll need to advertise, maintain a booking system, be on call 24/7 for emergencies, do the check ins and check outs, ensure the property is thoroughly cleaned between each rental period. Everything in the apartment needs to be well maintained. A poorly managed holiday rental will attract negative reviews, and good reviews are the life blood of this business.
Check the licencing requirements to run a holiday let in your area. Make sure you know what type of insurance you require.
If you buy the right property for the right price in the right location, if you provide a pleasant experience for your guests, run the property professionally and keep it well maintained, then there's no reason you can't make a profit from it. However, you need to research, research, research prior to jumping in, and to understand what's involved. Best of luck.
If you haven't done so already, spend a LOT of time checking all the holiday rental sites that offer properties in the location you're buying in. Does the market seem over or under supplied? You can see the availability calendars for each one, which will give you an indication of the rented vs vacant periods. The rent price point you set for your apartment is important, but it's not the only thing to think about.
Holiday properties need to be fully equipped, from furniture to electrical equipment, bed linens, right down to the teaspoons. The furniture and equipment doesn't necessarily need to be high end, unless that's the market you're aiming for, but everything does need to be comfortable, functional, safe and scrupulously clean. The property needs to be close to all the things tourists want - grocery shopping, good transport, restaurants etc. Consider whether you will manage the property yourself, or get an agency to do it. If self-managing then you'll need to advertise, maintain a booking system, be on call 24/7 for emergencies, do the check ins and check outs, ensure the property is thoroughly cleaned between each rental period. Everything in the apartment needs to be well maintained. A poorly managed holiday rental will attract negative reviews, and good reviews are the life blood of this business.
Check the licencing requirements to run a holiday let in your area. Make sure you know what type of insurance you require.
If you buy the right property for the right price in the right location, if you provide a pleasant experience for your guests, run the property professionally and keep it well maintained, then there's no reason you can't make a profit from it. However, you need to research, research, research prior to jumping in, and to understand what's involved. Best of luck.
May 25th 2019, 3:03 pm
#8
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Joined: Jan 2013
Location: Western Australia
Posts: 21,139
Re: Moving to Barcelona
Thanks, that is all great advice and I intend to research every detail. I have stayed in Barcelona many times, always in different areas and know from a customer point of view what makes a good apartment. I know that no property has bookings 52 weeks a year, but I also know that Barcelona has the advantage of all year tourism. I am already looking for jobs in Barcelona, but as my Spanish is poor and I don't have a degree in computing I must be realistic that a low paid job might be all I can find at first. Having the rental apartment to me seems like a good way of giving me a little extra money. Even a 50% occupancy should cover the mortgage and other expenses, and if it isn't profitable then I will just live in the apartment and work 2 low paid jobs to survive haha...thanks for your advice anyway. And if you know anybody in Barcelona looking to hire a hard working Irish boy send them my way.
You sound like you have your head screwed on the right way and know what you're doing, I hope everything works out for you and your girlfriend 
May 25th 2019, 3:43 pm
#9
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Re: Moving to Barcelona
Have you thought about buying a nice apartment to live in yourselves, with a spare room suitable for renting out on airbnb?
It would save you doubling up on all the utility bills, property charges, insurance etc, you wouldn't need to buy a full set of domestic appliances just for your guests' use. There's less likely to be damage if you're on the premises. You'd be on the spot to meet and greet and smooch your guests to get good reviews, do the changeovers, laundry, cleaning etc. Then, as and when you start earning, you can stop letting the spare room out if you want.
It would save you doubling up on all the utility bills, property charges, insurance etc, you wouldn't need to buy a full set of domestic appliances just for your guests' use. There's less likely to be damage if you're on the premises. You'd be on the spot to meet and greet and smooch your guests to get good reviews, do the changeovers, laundry, cleaning etc. Then, as and when you start earning, you can stop letting the spare room out if you want.
May 25th 2019, 4:15 pm
#10
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Joined: Apr 2019
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Re: Moving to Barcelona
Have you thought about buying a nice apartment to live in yourselves, with a spare room suitable for renting out on airbnb?
It would save you doubling up on all the utility bills, property charges, insurance etc, you wouldn't need to buy a full set of domestic appliances just for your guests' use. There's less likely to be damage if you're on the premises. You'd be on the spot to meet and greet and smooch your guests to get good reviews, do the changeovers, laundry, cleaning etc. Then, as and when you start earning, you can stop letting the spare room out if you want.
It would save you doubling up on all the utility bills, property charges, insurance etc, you wouldn't need to buy a full set of domestic appliances just for your guests' use. There's less likely to be damage if you're on the premises. You'd be on the spot to meet and greet and smooch your guests to get good reviews, do the changeovers, laundry, cleaning etc. Then, as and when you start earning, you can stop letting the spare room out if you want.
May 26th 2019, 6:14 pm
#11
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Re: Moving to Barcelona
I'm UK based, spend four or five months in Spain and Greece. I've a property portfolio which gives me a very good standard of living but...one property can give you a lot of problems, damage, wear and tear, under occupancy etc. Holiday lets mean you need to keep the property up to standard, greet guests, clean again for the next folk, maintain your website, pay your building and liability insurance. You may need to employ a letting agent to do the work but this will eat into your income. Even with a good deposit you will struggle to get a mortgage if your on a low income thats not guaranteed with a contract of employment.
With many many thousands of unemployed Spanish folk hunting for jobs, the same jobs your after means your on an uphill battle to find work certainly with no language skills.
If you have the cash to buy yourself a property outright then go for it; keep some cash back as a cushion while you seek work and enjoy your time in Spain.
If I were you I'd rent a small apartment for a while and look for work; there are no financial safety nets to fall back on in Spain as there is in the UK...When your broke you will be in poo creek without a paddle.
With many many thousands of unemployed Spanish folk hunting for jobs, the same jobs your after means your on an uphill battle to find work certainly with no language skills.
If you have the cash to buy yourself a property outright then go for it; keep some cash back as a cushion while you seek work and enjoy your time in Spain.
If I were you I'd rent a small apartment for a while and look for work; there are no financial safety nets to fall back on in Spain as there is in the UK...When your broke you will be in poo creek without a paddle.
May 26th 2019, 6:45 pm
#12
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Joined: Apr 2019
Posts: 10
Re: Moving to Barcelona
I'm UK based, spend four or five months in Spain and Greece. I've a property portfolio which gives me a very good standard of living but...one property can give you a lot of problems, damage, wear and tear, under occupancy etc. Holiday lets mean you need to keep the property up to standard, greet guests, clean again for the next folk, maintain your website, pay your building and liability insurance. You may need to employ a letting agent to do the work but this will eat into your income. Even with a good deposit you will struggle to get a mortgage if your on a low income thats not guaranteed with a contract of employment.
With many many thousands of unemployed Spanish folk hunting for jobs, the same jobs your after means your on an uphill battle to find work certainly with no language skills.
If you have the cash to buy yourself a property outright then go for it; keep some cash back as a cushion while you seek work and enjoy your time in Spain.
If I were you I'd rent a small apartment for a while and look for work; there are no financial safety nets to fall back on in Spain as there is in the UK...When your broke you will be in poo creek without a paddle.
With many many thousands of unemployed Spanish folk hunting for jobs, the same jobs your after means your on an uphill battle to find work certainly with no language skills.
If you have the cash to buy yourself a property outright then go for it; keep some cash back as a cushion while you seek work and enjoy your time in Spain.
If I were you I'd rent a small apartment for a while and look for work; there are no financial safety nets to fall back on in Spain as there is in the UK...When your broke you will be in poo creek without a paddle.
May 26th 2019, 9:05 pm
#13
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Joined: Jun 2005
Posts: 451
Re: Moving to Barcelona
Maybe I’m missing something, but I cant see the logic in paying out to rent an apartment, so that I can buy an apartment to rent out ? Let’s say I can buy an apartment where the monthly mortgage payment is 1000. To cover this cost , I then for arguments sake, rent the place out for 1000, but in the meantime I need somewhere to live, so I go out and rent a place for 1000. Total net negative cash of 1000. In addition, I have the risk of renting out the apartment I’m buying ( non payment of rent, periods when it’s empty, damage etc etc ). Far better, in my opinion, to buy my apartment with the 1000 mortgage payment, no risk with tenants etc.
Those who get into the buy to let idea, can very easily find themselves with problems that end up making it a bad investment.
Those who get into the buy to let idea, can very easily find themselves with problems that end up making it a bad investment.
May 26th 2019, 9:15 pm
#14
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Re: Moving to Barcelona
Dear Spudonthemove, find new girlfriend.
May 27th 2019, 7:23 am
#15
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Posts: 6,148
Re: Moving to Barcelona
As jonboy said, find a new girlfriend:-). You were also considering buying a business and looking at Buenos Aires but what is she actually doing to support you? As nice as Barcelona might sound, unless you have language skills/something that millions of others don't have, you are just like a kid looking for a job to increase your pocket money. As said before, I know plenty of Spanish here in Ireland and anyone who wants a decent work/life balance is still here. The only ones going are young adults who are happy to work for €900 a month. Eventually they realise that working long hours for pocket money, having no job security and no financial safety net is not the life they imagined either. At the moment, I just have the feeling you are trying to do anything to keep the girlfriend happy but it's your life and your money. Far better to save here, go on holiday or maybe save up for a holiday apartment you can actually enjoy.