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Hi there,
We are considering a villa with pool in the Javea area. 5-10 years away from retirement, so looking to rent out in summer months for first few years. (€250-300k)
Can anyone just give a quick assessment of any of the bullet points below
- approx annual running costs, including taxes and insurances
- ongoing renta tax? Understand payable even if not let out.
- Electicity
- water
- TV broadband
- maintenance
- rubbish collection
- realistic rental incomes after management fees in particular summer 10-12 weeks
- crime in the Javea area ( typically areas like costa nova)
- if if you have done similar, do you regret it? Would you do it again?
A lot asked for i know, but if anyone can help with any points, it will be gladly received.
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Ask the vendor and the estate agent.
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Cheers for that, very helpful.
just returned from a visit, and guess what, I felt the agent was telling me the things I wanted to hear, and not the things that I didn't.
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There are a lot of things that will be specific to the area and how it is used. A couple of points:
- approx annual running costs, including taxes and insurances
- House insurance for our 3 bed semi is just under 230 euro a year. However, we live here full time and not sure if there would be extra insurance to cover renters and long term absences. You would need to pay the council tax which varies a lot on size of property, location, facilities and so on. Ours is only 228 euro a year but just 10k down the road in a different town the council tax for a similar property is 425 a year.
- ongoing renta tax? Understand payable even if not let out.
- Does this mean the non-resident income tax? Yes, this is paid by non-residents and again can vary. Ours was around 80 euro each per year but we have been residents for 7 years now so will obviously have gone up. I think it is based on the rateable (cadastral) value of your property.
- Electicity
- Our electricity is now charged at different rates at different times of the day. Our bills have reduced by about a third over the last year and we average 80 euro a month. However, we don't have a pool which can use up quite a bit of electricity. You will also pay a standing charge each month of around 20 euro even if you don't use any electricity.
- water
- Our bills are about 260 euro a year but, again, no swimming pool although we do have an irrigation system for the garden.
- TV broadband
- Depends what you want. A satellite dish means a one off installation with no payments. We pay 24 euro a month for internet and landline with 500 minutes free calls a month to anywhere in Europe.
- maintenance
- If you're not there all the time, you would need someone to clean the place in between renters. I think they charge about 60 euro a time for this but you would also need someone to look after the garden, check for leaks on a regular basis, air the place out and so on. Charges vary from place to place so you should really ask a neighbour. Biggest cost would be pool maintenance which you pay every month even though it is only used for about 4 months of the year.
- rubbish collection
- Our is still included in the water charges. Some now pay separately but comes to about 15 euro a quarter.
- realistic rental incomes after management fees in particular summer 10-12 weeks
- Depends on how many it sleeps, facilities provided. Some properties go for 400 euro a month off season but go up to 400 a week in the summer months. Have a look at some rental websites for the Javea area and see how much others are charging.
- crime in the Javea area ( typically areas like costa nova)
- Sorry, no idea.
- if if you have done similar, do you regret it? Would you do it again?
- After renting out our house in UK I wouldn't do it again. It was wrecked and cost us a small fortune to get it back up to scratch before we could sell it. And that was with an agent. After hearing some of the horror stories from people here who look after holiday homes and rentals I would think very carefully. Not just aircon being left on 24 hours a day and windows wide open but furniture and walls being damaged and so on. You would, of course, take a security deposit but this can be expensive with just one bad lot. So saying, there are loads of holiday homes being rented with no problem. Most are left standing for months on end due to the glut of similar homes and competition. I doubt the rental income (which is taxable on a quarterly basis) would cover all the costs and remember you need a tourist licence and a registration number if you are going to advertise on line or in the papers.
Good luck.
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just returned from a visit, and guess what, I felt the agent was telling me the things I wanted to hear, and not the things that I didn't.
NEVER
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If you are buying outright then go for it.... but don't expect to make a fortune, after the letting agent has taken his percentage and you have paid for the cleaning and so on you will be lucky if you see €200 out of a €400 pw let ....if you intend getting a mortgage and hoping that the rent income will pay for it think again there are many thousands. up for rent ...the only one's that are making a success out of holiday let's are finding their own client's and managing the cleaning and hand over. themselves realistically you are looking at around letting 12 weeks out of the year for holiday let's. This message was last edited by windtalker on 16/05/2017.
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I tend to agree with windtalker, unless you are hands on with holiday lets you will end up with nothing £s except problems and grief.
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