Is it worth it - Investment

Hi all,

I'm awaiting completion in Aranal Golf Phase 4, no date yet but I expect it to be late March.

Hard to believe it is now 2 years since myself and my wife put our money down in early 2005. Our objective was longterm (12 - 15 years) investment i.e. pension plan. Back in Jan 2005 we felt very confident that the rental income would cover the mortgage and took out an interest only loan at home to cover the 30% payment. Now we are not so confident particularly with all the interest rate increases.

I'd be interested in the sentiments of others if they reckon the rental will cover the cost of investment (loan for 30% and Spanish mortgage for remaining 70%). Also what kind of interest rates are available (best I;ve seen is LaCaixa - will do Euribor rate +1.2%) for interest only or capital + interest.

Is anybody renting in Arenal so far (longterm or shortterm ?)  As far as I can figure, renting shorterm is the only way to cover mortage payments.

Cheers

Hi I have approached Marta at    marta@easy2loan.com  she is extremly helpful and has got me a 1 year interst only with the rest being repayment. which is very competative.  She is wooirth contacting. 

Michelle

rhackett,

I got mine through cajamadrid at euribor + 0.90% (they previously held the mortgages for phase 3). Very easy and quick process. They are based in Fuengirola. My contact was Kate Smith on (0034)952587143 

rhackett

We have a 2 bed 2 bath on Phase 4 and will be looking to rent it long term.

Realistic rental for this will be 650 unfurnished to about 750 fully furnished, this is less than we thought we would get.

It will not cover an interest only mortgage on the 70% that we will be financing. Also, long term rental in Spain is 11 months, not 12 like the UK.

The Leeds in Gibraltar will finance interest only for the CDS.

Thanks to all the responses and details re choice of bank lender.

It would seem that buying to let investment is now more difficult in terms of covering mortgage payments.Lets hope there are not too many more interest rate increases.

Best Regards

Robert

I HAVE HAD LOTS OF PEOPLE ASKING TO RENT MY APARTMENT ALL KEEN GOLFERS BUT I DO NOT INTEND TO RENT SO IF YOU WOULD LIKE ME TO GIVE YOUR DETAILS GET IN TOUCH

I CAN ALLSO PASS ON DETAILS TO  OTHER GOLF CLUBS AS THEY ALL GO TO .CDS FOR GOLF COMPS  I HAVE CONTACTS IN SCOTLAND ENGLAND  WALES

Hi Babe

We would welcome any possible people wishing to rent. I will send you a private email this evening. I will also try to call.

Regards

Jul