Best type of property for rental income

Hi, Im seriously looking at buying a place in Spain, not to live in, but for long weekends and to rent out when not in use by my family and friends.

What are the easiest properties to rent, i.e. on a golf course, next to the sea or in a spanish village. Ive done some research and can see that having a sea-view and being not too far from the airport helps, but would like to hear from anyone who has had success in renting out.

Cheers - Kev

Hi,

I am no expert but I would reckon that near the sea is a good option especially if you have a sea view. Having facilities such as supermarkets and restaurants within walkiing distance is always a plus when renting out. I can't comment on golf properties but if there is a nice club house and it's not too far from town it could be a good idea. Even if you are on a golfing holiday you need somewhere to visit and eat out.  A 2 bed 2 bath apartment will always be popular but there are also a lot of them.

Look at the rental sites and see which properties have high bookings. If there are lots of people competing in one area you will need something that stands out ie. view to sea or over the fairway. I was speaking to someone recently whose friend has furnished his sea view apartment to a very high standard with luxury furnishings, flat screen TV, games console, I Pod dock etc and only charges a little more than others in his block but is fully booked and can't keep up with demand.

Being too far from the airport can put people off . Some British people aren't keen to drive abroad and need a bus , train or cheap shuttle service to their accomodation. If you are advertising internationally it doesn't make much difference as French and German families often drive to Spain.

There are so many properties for sale I'm sure you'll find something to suit your needs. Hope this helps.

Decided to look for a house or bungalow rather than an appartment. Then it will hopefully have a patio, roof terrace and shared pool (essential). Also somewhere fairly near the airport and within walking distance of the beach is very important.

I agree that the decor and 'luxury' finish seems to make a difference on the bookings of the property that Ive looked at for rental.

Going out next week to look at a few places.

Cheers - Kev

Too many golf courses so over supply and low bookings etc

Taxis are expensive and in some cases cost of taxi will exceed fare from UK!

My opinion - go for the old favourites - Torremolinos - Benalmadena - Fuengirola- all of which can be reach by train or short taxi ride.

Somewhere like Los Boliches in Fuengirola has high demand in summer and also plenty of pensioners in winter.

But make sure it is within easy walking distance of everything and preferably nice balcony view

It is not straightforward to  LEGALLY let a property.

.

Ensure you do your research before buying.  Take into consideration annual taxes and community charges.  In our community, we are on the edge of a golf course but about 5 minutes walk to the sea, transport, medical centres etc.and on the train route from Malaga airport.   Apartments are to let privately, and one resident looks after the rents for the owners.  She also arranges cleaning etc so that is an advantage of an apartment.  At present Fuengirola is the last stop going west so after that a taxi would be needed.

This year, the hotels are charging less and so the rents have needed to fall too.  The income on these properties with golf and sea views is around 25-30 euros per night.

Also look at the legal system should you decide to sell your property.  A Spanish will is important and also check that the community is not in the red.  We went in with our eyes closed but fortunatley, it has been a success with few problems.

Hope this helps.

 Very good and interesting post, some relevant points been made ref. tax position and situation of non residents, these are over comeable by setting up company structures. SLs or LTD companies etc. Each person would need to talk to fiscal representative and lawyer to find best structure.

With standing this , what is best for yields. Historically spain has been a low yielding country and a high ownership country. It has the highest home ownership in Europe, it was close to 80% versus some places like Berlin which is 85% renters! The complete oppersite.

The property prices were (and dropping) relatively expensive versus the income generation. ie. rent. The market was a bull market, and even the locals put their money into bricks and mortar with the belief it could never fail, now as we have had a bad market since 2007, yields may start to rise.

So what should you buy, the question should be, whom is your customer, are they locals, are they seniors, are they expats. How do I structure, - company versus buying as individual, do I use mortgage finance for leverage. Different areas have different clients, and different users, I do not believe there is an a typic answer. Other than buy cheap, and rent out for lots. How you achieve this is down to your buying strategy and your rental strategy.

It is like any business, you have to work the channels, to make the investment as profitable as possible, and that only comes with refinement in the process. And continually looking at the business model and tweaking it so it works effectively.

So the simple question of what type of property? It depends on your target customer, and target market.

The real question should be what is the best yield and return on my investment. instead? and compare it to other investments.