site visits

I clearly remember being told by my AMBASUN rep that buying a property on the site could offer good returns BOTH as an investment and also rental income

KayT

KayT

And they are correct if it is run as a business properly, Unfortunately many go into these types of purchases with all good intention and forget that similarly to letting property in the UK, it is a business, has to be managed and taxes applied accordingly. Investment wise, I can tell you that property on this development is now being sold at a much higher rate than many initially paid therefore their yield, before a brick has been laid is potentially between 30-60k. Great investment.

However, with Letting, there are a number of costs that have to be taken into consideration and no letting fee is 100% margin. Take off the tax, support charges, administration etc and I reckon you're left with approx 20% of the income. This is one of the reasons we created the Letting Fee Calculator to assist people in setting up their own 'businesses' and gauging what costs are involved, and therefore, what costs to charge, afterall, no two Lets will have the same costs.

Stick with it though becuse as you say, there is good money to be made....with the help of the right people.

Regards

Darren

Darren, that is assuming that you are legally allowed to let, under the laws and consent for the development. Does this one have consent for residential or tourist use?

Regarding the purchase as an investment, if researched, only a fool would believe that the yield could be anything like the 10-15% in the past, as the official statistics will confirm. There again, many purchasers will only want to believe what the developer and their agents tell them.
It is unlikely that the developer will say that this is a bad investment and don't buy it.
Remember a good statistician can get the numbers to do whatever they want them to do.
I have never come across any development where there hasn't been an increase in estimated value before a brick is laid, and the increases coming from the asking price of the developer, to back up their claims. But be realistic, do your homework, how many developments now completed are the developers selling off the retained properties for 25% below what the owners are trying to resell at. Often it is built into their business plan, that is where their profit is.

Regarding the letting, you say that  there are a number of costs that have to be taken into consideration. Agree, but you do not mention the supply/demand. I have also seen on the calculators that rental income is based on 30 plus weeks a year rent. That is a joke. The odd one may be lucky, but talk to owners. Corporate and private, then adjust your calculator.

I am afraid my views differ from many who see it through rose tinted glasses and I have never rented out myself an no intention of doing so. But please, be realistic and see both sides.

A few simple questions.
1   Does a development need a Touristic Licence to be able to legally holiday let
2   If not, does it require one to be legal
3   Can the Community object and ban holiday letting
4   Ignoring Spain as a whole, just look at here. Assume 10.000 properties on
   completed development. Say 70% want to rent. Can the area generate 7.000 
   visitors every week just here?

Finally, you mention "you're left with approx 20% of the income".
I am really pleased if you could do that for the owners, especially in the downturn in the tourist figures (official, not mine) and look forward to viewing 12 month after completion when perhaps people could tell me if this was achied and by what percentage. I would loved to be proved wrong, but would stake a bet.

 

Alm,

You may misunderstand me, I have no interest personally in Letting my own property out, we will be residing there permenently. We have tried on numerous occassions to inform people to do their homework and make sure their own 'business plans' are drawn up. As far as the rental calculator, you are correct, at this point no-one can guage how popular or un-popular the development will be and subsiquent Letting capability.

The calculator is an indicative tool and is there to try and get Homeowners to start to think about their task in hand...no more than that.

Darren

So why not just post it on here?

We did on a previous thread but have to respect Justin's regulations of not promoting personal business on here directly, albeit we are having conversations to market the business via this forum.

Darren

So if you are just doing it to "inform people to do their homework" and not mentioning your business, just a simple, Total cost, outgoings, interest, loss of interest, maintenance, insurance, etc., etc., against income. What forum rule would that be breaking?

Also be interested to receive comments on :
A few simple questions.
1   Does a development need a Touristic Licence to be able to legally holiday let
2   If not, does it require one to be legal
3   Can the Community object and ban holiday letting
4   Ignoring Spain as a whole, just look at here. Assume 10.000 properties on
   completed development. Say 70% want to rent. Can the area generate 7.000 
   visitors every week just here?

Alm, much of what you  ask cannot be answered by Darren or anyone else, nobody will know what the rental potential will be until the development is up and running, it may be fantaastic or it may be terrible, Spain are building at a rate per year equall to  France, GB, and Germany put togeather, anyone thinking of buying should really think in terms of sole usage anything else should be regarded as a bonus, at the rate of building in spain supply will surely outstrip demand very quickly, the selling prices on this development at the start were very competitive to the market, but  to make a return you need to look as a long term investment, gone are the days of making a killing, euroland interest rates are rising steadily which will put further pressure on the housing market in spain, property speculators  are feeling the draft of a stagnant market, and many cannot even get back their original money, many developments off plan are price d well above the second hand market for the same propereties you need to make sure you are not paying  to much . Darrens formula is an anitial guideline which will need adjusting dependent on prevailing housing market condirtions . ; we can all speculate but we will just have to wait and see how things go.

Chanta / Alm

Precisely and that is why I state that I hope Members have done there homework and not gone into this with either blind or rose-tinted vision and purchased based solely upon the rewards speculatively offered by some sales companies in search of their Euros. I can only advise but cannot be held responsible if people choose not to listen

Darren 

Irrespective of the rental potential, what about?
A few simple questions.
1   Does a development need a Touristic Licence to be able to legally holiday let
2   If not, does it require one to be legal
3   Can the Community object and ban holiday letting

So alm

what is your real problem does this type of negatively help members on this forum

1. is it that you too are hoping to make a bob or two

2. are you really helping the other members on this forum

3.asking peolpe to answer questions NO one can answer at the moment

I like you don't give a toss about whether people rent ,make money, I will live at SADM permantently THAT is the ONE reason I did not buy an apartement as I did not want different maybe noisy neighbours every couplke of weeks

Q. what is your real problem does this type of negatively help members on this forum
A. no more or less than people who claim a wonderful investment.

Q. is it that you too are hoping to make a bob or two
A. Not on this, no need. Will just enjoy.

Q. are you really helping the other members on this forum
A. Don't know, maybe it is good for people to see both sides?

Q. asking peolpe to answer questions NO one can answer at the moment
A. Why shouldn't owners know
1   Does a development need a Touristic Licence to be able to legally holiday let
2   If not, does it require one to be legal
3   Can the Community object and ban holiday letting

THAT is the ONE reason I did not buy an apartement as I did not want different maybe noisy neighbours every couplke of weeks - You think that living in a villa will stop noise?
Ever been next to a villa with 6 male golfers staying there?

I don't know who the hell you are alm,  probably a little tosser who works for polaris world or other developer.If you want questions answered why not try your solicitor.

I doubt whether you could even afford to buy an apartment.Sour Grapes is it?

Go and bury yourself

taxiparrots, hope you are not the typical standard that I can expect as neighbours?Think that this could devalue the development.
"If you want questions answered why not try your solicitor" - No need, don't need to rent to pay for property, nor do taxi runs. Also, I am aware of the laws governing the questions I set, just wonder how familiar the likes of you are?
I assume you do not have the brain or knowledge to answer the questions?
"I doubt whether you could even afford to buy an apartment" - I am surprised, with the abuse you have shown, that you could raise the funding to acquire.

 

I seem to have missed this on the weekend, however I do find your postings like the others rather boring Alm  ! you need therapy

 

Kevin

What an entertaining weekend's reading!!!!

kevin l, sorry that you and "others" find my comments and questions boring, but it does seem from their comments there are others ( barry210357 and auntielinda) together with the pms I have received, that not all share your opinion.
It has to be said that not all share the same opinion and there are those that find such things as television documentaries and political matters a bore.
I wonder why?
For those who do not find the topic so boring, there are a couple of good websites out there where the matter has been discussed widely and with legal opinions on.
I am still awaiting for the "critics" to answer on the questions.

We have dealt with San Jose diectly and the last time we were at their office there was a Spanish lady there who was buying three properties for investment as well as her own property and I would think therefore that, unfortunately, there will be quite a lot of holiday renting going on, unless, of course, there is anything that would restrict renting properties in 'Residencial' areas which I have not heard about. I have a freephone number for San Jose so I may give them a ring or wait until we see them again in early February. Happy days.

Any chance of having the free phone number

 

Kevin

alm

If you could would you ban holiday lets?
Have you had a bad experience with neighbours in a holiday let previously?
Are you willing to disclose your plot and phase number?  That way you might find out if you have a permanent live in neighbour or a permanent holiday let.
If you have Spanish neighbours on a permanent basis it may be just as noisy as have 6 male golfers cos they do know how to make a hell of a lot of noise and dont start until the early hours of the morning.