bob_bob

Do you have an accountant in the UK? You should be netting more than £14k.

cricketman

I actually disagree with all those figures. You can't get 20k gross rent a year from a 250k property in the UK. You would be lucky to get 1k per month rent

So 12k gross

Minus 8% EA fees
Minus 8% management fees
Minus 10% insurance, repairs and maintanance
Minus 20% tax

Would be more like 7k net income per year i.e. around GBP600 per month. About half what the OP suggests

dibyrne

Depends where you go and what you invest in. We have a few dotted around the south of the UK and i agree you'd be lucky to get 5%. For example, I have one in Exeter worth 250k and its only making 800pcm, but it's been very strong growth. There are many opportunities in places like Manchester where holding costs are much lower and yields are greater, for example I am looking at a block of three 2- bed apartmints in an ok area for 240k. Each flat is currently let for 550pcm. That's over 8%. Maintenance tends to be higher and management fees are about 10% Inc vat. Including voids and other expenses on average you can expect to net around 65 - 70% (in answer to a previous poster). This is conservative and anything else over this is a bonus. HMO rentals often yield 15%+, but that type of rental really needs the landlord to be local, although management companies do cater for HMOs.

dibyrne

Management fees - 10% 2000
Boiler maintenance and gas certs - 200
Maintenance 1% of value - 2500
Void - typically about 5% - 1000

Total = 5,700
20k - circa 6k = 14k. And I'd get even less if used an accountant!

Horlics

Correct. CM hasn't a clue what he's talking about and will not be helping the Op by giving this baseless and inaccurate information. But he's got form.

cricketman

It's a lot cheaper than the Costa del sol, Costa brava and the North Atlantic Coast, which are the areas I know well

Sorry, I should have said that the Costa blanca was pretty much the cheapest area to buy property on the Med Coast.

Horlics

Op,

I know of somebody else who started looking around Javea and eventually settled in the area of Castellon de la Plana. All sorts of housing options and prices surrounding it, and now that the airport is open it's more accessible than before. You might want to take a look.

dibyrne

Thanks for the tip, although we're now rethinking our whole strategy of moving to Spain. Our last recce raised some questions we need to work out.

Longlegpete

This is also not correct, the Costa Blanca is a long coast you will see prices in the Marina Alta(javea /moraira etc) are all but on a par with the Costa del sol and are much higher than southern costa blanca and Murcia etc.

https://data.kyero.com/en/data/spain

Moses2013

This data is a bit misleading to be honest and you always need a lot more factors. Just because they show average prices for a whole province doesn't mean you can't find cheaper properties in the area. It just means that there are probably more exclusive properties that cost millions, the area is less built up, so fewer smaller apartments, or in the case of Barcelona a huge city where most jobs are. Girona shows 221K, but you can find plenty of detached houses for a lot less.

Horlics

I saw A Place in the Sun recently. A couple looking for a smart apartment on the CDS. They were shown a couple of stunning places, very spacious and smart. Flasher than my pad, and only 70% of the cost of mine.

And the Costa Brava. Laughable.

But Pete, he won't be told, so don't waste your time.

Horlics

Exactly!

Longlegpete

Indeed, I wouldn't argue with that but it is a guide, after all, if an area's average price is brought up by having properties worth millions then that by it's very nature leads to higher prices being asked for property in the area because of the "exclusivity " this brings to the locality

Moses2013

Sure, but they are looking at a very large area on that map. Just think it's worth mentioning that the Costa Brava for example wouldn't be as built up as the Costa Blanca, where you'll obviously find a lot more smaller/cheaper apartments along the coast.




Places like Begur would be very expensive, but around Blanes, Lloret, Tossa it's far more affordable, especially a few mins inland, but even these more built up areas aren't what you'd see in Alicante or Benidorm.

Horlics

That's a pity, you seemed to have it worked out and it appeared entirely feasible. I would be surprised if you can't find something suitable in Javea given a little time.