thinking of buying hotel room

hi iam thinking of buying a hotel room in a beach front hotel in fuengirola does anyone know of the pitfalls thier is a 10 year rental income garentee never bought here but holiday a lot in belemadena jr

Purchasing standard property in Spain is not without it's problems, I can envisage a lot of problems with this sort of purchase, I presume that you would quite simply, be doing a deal with the hotel owners, take care. 

hear we go again roll up roll up roll up.

I'm just too polite, but I do recall a luxury car scheme where folk paid an 'ownership' fee in accordance with the weeks that they required it, sadly there was a serious luxury car deficiency when they arrived at the airport. 

thanks everyone slg property are the company i will take what ye said on board

thanks everyone slg property are the company 

Thats a Property Management Company in America so have they bought the whole Hotel you are looking at?  Or just managing the rentals and sales for the owners?

One thing I would say to you is be very careful of anyone who says they can give you a guarantee of ten years rental income, even now the Hotels in Spain are complaining that the private rental sector is messing up the Hotel rental business and I would suspect that even the best Hotel anywhere in Spain has a good few rooms empty in the summer season, winter season is probably even worse.

If they only rented yours out for a couple of weeks a year for the ten year period they could then still say you have got your ten year rental agreement, after that your on your own, and you couldn't really own it can you because it must have a lease attached to it somehow surely.

You should make sure, if you can, that this Hotel your interested in fills up almost 52 weeks of the year because maybe the reason they are selling of rooms is because they are best part empty so if they flog them off that at least makes them extra money, and if the Hotel is having a bit of a hard time filling up its own rooms, would they rent yours out over the Hotels own.

I wish you luck with what ever you do.

I think it's this SLG Baz

This looks like the one jr?

http://www.slgproperty.com/master.php?goto=details&lang=en&sf=true&id=675448

SLG have a good name on the CDS, I have no idea about the complex. My advice is take the proposed contract and the sales blurb to a independent lawyer

Hi Team GB.

Yes, you are correct, my bad, I took it that it was an I but it's an L, thats why the American company came up, no surprise if it were an American company they sure do get about a bit. Looks good though.

Best advice going as well...Independent lawyer.

I don't own anything down south of Spain but have been told it's on the pricey side in regard to maintenance, community charges etc, so best to do plenty of homework on that one as well, hate to think the room was dirt cheap but the costs are sky high.

As for the I and the L, time for another spec-savers visit me thinks....Thats this Sunday taken care of then.

Sounds like another version of timeshare. Many of the hotels close down in winter and only reopen Semana Santa.

OK so you pay your €44,300 and take your 5% yield over 10 years amounting to €22,150, what happens next? 

costa con all over /time share ownership is tapped out / bulders taking deposits for property that never gets built tapped out /and now what have we buy a room of a hotel owner that he cant let it himself like a lamb to the slaghter.

Yes and guarantees that turn out to be useless. Remember what happened to some of those developments offering rental guarantees!  

Sounds like a prime example of  'Sell the sizzle, not the sausage', if you are being shown a quality badge car, the sales person will focus on the nicer points, not the cost of a replacement dual mass flywheel and clutch. What I just can't get my head around is, in this case I can't even smell the sizzle, what is the big thing about owning a hotel room?   

This was big business in UK in the early 2000's when investing in houses fell from favour because only a very poor rental return of under 8% was achieveable. One of the first to operate this scheme was a company called Guest Invest who started in 2003 and went like wild-fire but crashed in 2008. There are still several schemes about - but you need to be certain that you will get a very long lease that you can sell on if you do invest. The big one now is student accommodation room ownership as the rental is almost 100% guaranteed, although you don't get any 'free days' each year in your room as you would in a hotel room. Not too popular with the big pension schemes although some big-hitters do invest. But and it's a BIG but......... This is Spain and because it is not at all popular with investors looking for security or a stable country to park clients money, you need to consider this very carefully.

One Company running a student room accommodation scheme was showed  on TV as a scam.

If you Google Parques Casablanca in La Fustera you will see what I consider to be the nicest apartment complex that I have seen. However when you dig a little deeper the apartments are held within the wrapper of that of an aparthotel, you don't have your own electricity meter and all rentals must go through service reception. The better fully furnished sea view, 2 bed, 2 bath apartments were originally on sale for €399.000 when the € stood at 150 to the £, not too long ago the same units could be bought for €169,000 when the € stood at 125 to the £, a loss of £130,800.

Charges are €250,00 per month, plus €500.00 per annum community charge, and god only knows what the electricity charges are. I suppose that a couple wanting to retire to Spain could do a lot worse than take advantage of the knock down price, lovely communal grounds, secure car park and private pools, with no maintenance work to do, that is if you could live in what is really a hotel.