News: Why buy-to-let in Spain?15 Jul 2016 Back
The Spanish buy-to-let model has been tried and tested for years due to the massive demand for Spanish accommodation for tourists. My investors make a yearly profit from their properties with some completely paid off years sooner than they originally planned. To match the increased popularity of booking direct many websites, such as us for example, offer rental accommodation directly from the owner.
The coast is by the far the most profitable and sensible option when looking to invest as it offers more variety for potential throughout the year. Thanks to it's beautiful beaches and guaranteed sunshine, you can expect high demand for rented accommodation during the high season; whilst during the low season many tourists come to take advance of Spain's many golf courses. This allows investors to profit from higher short-term rates instead of having to look for lower long-term rates.
Another factor is the constant competition between airlines forcing the price of flights down, helping to increase the ever-growing stream of tourists making such costal hotspots as Alicante accessible all year round. Every year over 12 million tourists choose Spain due to its favourable climate, relaxed culture and its accessibility from most major UK airports.
When looking for your buy-to-let property it's important to choose the right property to suit your circumstances. Aspects such as local infrastructure, transport links, accessibility, distance to amenities and local attractions need to be taken into account. The property should be within easy reach of its key selling points and perfect for your target group of potential tenants. For example if you are aiming to let to families, then the property needs to be safe, away from busy roads. Families also want easy access to supermarkets, parks, transport links, etc. If you plan on making this property your part time get away or retirement plan, then you need to balance your own needs with that of your target audience.
Thankfully we are here to help you, all you have to do is get in touch and let us know what you are looking for and we can do the searching for you.
Next, depending on your circumstance you will then need to arrange a mortgage for the property. Mortgage providers are in abundance in Spain and offer competitive rates and low deposits. In previous years some banks even offered 0% deposit. Again this is dependent on your circumstances and we are here to help you find the right mortgage provider.
Once you have purchased your new Spanish property it is time to start renting it out, the easiest part of the process. Most properties are rented on a weekly basis for a higher income but you can also aim for the long-term market. Property in Spain typically rents for 25-30 weeks of the year. You can either manage the letting yourself online, advertising on any of the numerous website available and/or use a local agent to deal with it on your behalf.
After many years of economic decline, the Spanish economy is on the raise and the demand for property is increasing. Over the past few years some areas have seen their property's value by 20-30% with this grown showing no sign of stopping, now really is the time to get on board the Spanish property market.
If you are thinking about investing in Spain, please don't hesitate to get in touch. We can help with further information and advice about the process and have an extensive range of appealing buy-to-let properties available on the Costa Blanca.