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THE MARBELLA PROPERTY EXPERTS

From a property investment point of view, the lifestyle in Spain is hard to beat, relaxed and easy-going, safe and child-friendly. The climate suits all tastes, ranging from one of four seasons with a proper winter and lots of snow in the north to the sub-tropical south where the micro-climate zones on the Mediterranean coast of Andalucía have the best winter temperatures on the European mainland. Spain’s beaches and marinas have more Blue Flags than any other northern hemisphere country with a total of 681 of which 98 are in Andalucía. For the cultural tourist Spain has 44 UNESCO World Heritage sites, with a 45th, the megalithic burial mounds at Antequera, pending approval, putting it in third place globally, behind only Italy (51) and China (47). By region, Andalucía has the highest number with 6, hopefully rising to 7 soon.

Living well is affordable with food and drink prices below the E.U. average according to Eurostat and the cuisine is world-class. In the last 10 years a Spanish restaurant has been placed first in the list of the world’s top 50 restaurants 6 times, in 2015 the top spot went to El Celler de Can Roca in Girona and with a total of 7 in the top 50 in 2015, Spain had more than any other country. Sports and outdoor enthusiasts are spoilt for choice; golf, tennis, equestrianism, skiing, wind & kitesurfing, mountain biking, rock-climbing, hiking, fishing – the list goes on and on. The result is that Spain has a quality of life that’s hard to beat; the climate, the good food and outdoor lifestyle mean Spaniards have the longest life expectancy in Europe and are second worldwide, just behind the Japanese.

Why You Should Buy To Rent In Marbella

From an investment point of view, the fact that prices are off the floor in the prime locations has to be set against price falls from peak to trough of around 40%, even in the best places, so, there is still potential for capital growth of up to 30% in the relative short term before prices are back to where they were, from which point, no doubt, they will move on upwards. Rental yields had another strong year in 2015. Across the board, owners of top-quality, luxuriously furnished properties in prime costal locations enjoyed 100% high season occupancy which is easy to understand when you look at a breakdown of the booming tourism figures showing where all these millions stay. According to the Tourism Ministry, 63.5% stay in hotels, 36.5% don’t. Obviously, some of these will stay with family and friends and some will own their own property but that still leaves a very big number interested in renting privately. As a rough guide a 4%± gross yield is achievable if all high season weeks are occupied by short term holiday lets and it will be similar in the case of a year-round long term rental.

Key Factors To Consider When Investing In A Property To Rent Out

The key to achieving an even higher yield is to focus on a mix of short term holiday lets and some longer lets at other times of the year in the few areas with a genuine 12-month season, and in the case of Spain that means heading for the mildest climate and golf. And I don’t mean areas with one or two golf courses within 30 minutes, I mean the area that attracts the serious golfer between October and June, that is the Costa del Sol, which also markets itself as the Costa del Golf, and specifically, the prime stretch between Marbella and San Pedro. A gross yield of 8%+ is achievable in this area, with about 4% coming in the high season weeks and the other 4% spread through the mid and low season weeks, mostly short term but there’s also demand for winter lets of up to three months. With demand outstripping the supply of quality rental properties in prime locations yields should hold up even though property prices are rising as rental prices are also on the increase and it goes without saying that free wifi, flat screen t.v. & satellite, high quality interiors and equipment are considered standard requirements by tenants.

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How To Choose The Right Property Investment In Marbella

If you are looking to purchase a property which yields you reliable rental income, it is advisable to  target certain areas and ignore others,look for a type of property and reject others. Get the location wrong, even by just a few kilometres and income may be halved. As well as pinpointing the right location in a particular area you need to be in the right region because some have legislated against short term holiday lettings, pressured by the powerful hotel lobby and disgruntled locals. This is particularly true in Barcelona where some localities are overrun with holiday lettings. In Andalucía, which is where some of the highest yields can be achieved, legislation is pending but it looks likely to introduce a licensing system before summer 2016. But if rental income is a requirement of your buying plan then check the legislation in that autonomous region because there are differences.

For more information on how we can help you purchase an investment property, please contact us here!

 

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