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Buy to let advice

Posted: Sun Feb 5, 2023 1:51pm
6 replies190 views7 members subscribed
bradders

Posts: 11

Location: Orihuela Costa

Joined: 13 Feb 2022

Hello everyone, 

My wife and mysef are looking to buy a property in Spain initially for use as a holiday home and eventually as a more permanent residence. To speed things along we have been toying with the idea of getting a mortgage to purchase the property and then renting it as a holiday home to fund the mortgage repayments, has anyone else gone down this route and if so what were the pros and cons, how difficult or how easy was it, what additional or unexpected costs were there, I realise that on top of the mortgage repayments there would have to be things such as insurance, paying a person or a company to clean and maintain the property in our absence and handover keys etc to arriving guests, is there anything I have not thought of (and I am pretty sure there is probably lots) absolutely any advice is welcomed and would be greatly appreciated 

Many thanks in advance

Wayne and Mel 

Paolo51

Posted: Sun Feb 5, 2023 1:56pm

Paolo51

Very helpful member

Posts: 513

535 helpful points

Location: Orihuela

Joined: 10 Nov 2017

Posted: Sun Feb 5, 2023 1:56pm

It not as easy as you may think, more so if you live in a community as everything needs to be passed by the president of the community.

Not all areas allow property rentals, you would need to check at the town hall in the town you purchase your property in.

There are certain licenses and buildings criteria you would need to acquire before renting, the info should be available at the town hall and you would need to check with the mortgage company if renting would be allowed.

Sligogent

Posted: Sun Feb 5, 2023 8:05pm

Sligogent

Very helpful member

Posts: 1035

555 helpful points

Location: Torrevieja

Joined: 31 Jan 2021

Posted: Sun Feb 5, 2023 8:05pm

My  opinion   is  owing  a property  in Spain  is a Luxury  not  an  investment. 

Just to  have keys in your  pocket  for a normal  2 bed  Apartment  costs about 1500 euros  a year. Community  fees House  insurance.   Non Resident  tax.  Standing charges  on Water and Electricity  even if you never use any. Bursa =  Rubbish  collect. Keys   holding  service.  And there will always  be maintenance 

Buying  to  live  permanently  OK  if  you can tolerate  June to September  heat

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Davebev1

Posted: Sun Feb 5, 2023 8:30pm

Davebev1

Legendary helpful member

Posts: 1573

2227 helpful points

Location: Playa Flamenca

Joined: 7 Nov 2017

Posted: Sun Feb 5, 2023 8:30pm

We have produced written and video blogs on holiday letting and Tourist Licenses that can be  found on this forum (search Tourist License and our name). As you are at the research stage can you please private message me your email address and we can answer your questions directly with links to official info. 

It isn't just a case of find a place you like and start advertising. There are lots of regulations and if you buy in certain locations then you can't get the License required, so you need to buy the right property in the right location. Yes, holiday letting can pay all or some of your mortgage (depends on the size of the mortgage), or give you a small additional income.

Golandrina

Posted: Mon Feb 6, 2023 9:09am

Golandrina

Super helpful member

Posts: 1654

1226 helpful points

Location: Almoradí

Joined: 24 Mar 2018

Posted: Mon Feb 6, 2023 9:09am

Sligogent wrote on Sun Feb 5, 2023 8:05pm:

My  opinion   is  owing  a property  in Spain  is a Luxury  not  an  investment. 

Just to  have keys in your  pocket  for a normal  2 bed  Apartment  costs about 1500 euros  a year. Community  fees House  insurance.   Non Resident  tax.  Standing charges  on Water and Electricity  even if you never use ...

...any. Bursa =  Rubbish  collect. Keys   holding  service.  And there will always  be maintenance 

Buying  to  live  permanently  OK  if  you can tolerate  June to September  heat

Just a little advice, Sligogent.   Bursa is not the Spanish word for rubbish, the word is basura.

Martyn1986

Posted: Mon Feb 6, 2023 10:05am

Martyn1986

Very helpful member

Posts: 1268

889 helpful points

Location: Villajoyosa

Joined: 23 Aug 2020

Posted: Mon Feb 6, 2023 10:05am

If done properly through Airbnb and other letting agents it can be a very good summer income but it depends on how big the property is, you need to have enough beds and facilities like a pool to justify a high price, if you rent at say 1400euro for a two week stay it works out quite nicely but you need to make sure that you are at full occupancy because during the winter months you still have to pay the bills

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