Posted: Sat Aug 8, 2020 2:37pm
Generally speaking in my opinion, and it is only my opinion, not based on any facts, I'd suggest if the purchase is dependant on an income from rentals it's a purchase that is best avoided. If this is purely an investment I'd suggest there are much better/safer places to put your money than Spanish property. I don't see that changing for a number of years.
Going back to your original question, I'd suggest any potential income will depend on the type of house and it's facilities. Smaller properties with limited facilities at the lower end of the market in areas that are predominantly British will be hard to rent. This is soon to become an extremely competitive saturated market. Larger properties with their own pool in these areas will I think become quite rentable, as many will soon be looking for holiday accommodation with a private pool. But I suspect rental values will drop significantly from post lockdown. So while there might be plenty of renters you won't be able to charge much.
Larger properties with pools in traditional Spanish resorts will soon become the money makers, being in high demand from Spaniards who will be "staycationing". But you will pay a lot more for these like for like that some of the typical British locations.
I have been looking for a property for a while now, I'd originally planned to use the money I've saved up plus a small mortgage to buy it. I'd planned to rent it to cover the mortgage. That plan has now completely changed. I'm now looking to only use my savings and not be reliant on any rental income. Eventually, I will still rent it out, but I won't need to income to pay for it. Any income generated will be purely the icing on the cake.
Ironically, as prices are now dropping significantly and look like continuing to do some for some time yet it's most likely I will still be able to buy the type of house I originally wanted, just without the need to borrow anything. So it's swings and roundabouts.
Either way, whatever you decide to do, take your time. The longterm effects of what we are presently going through haven't really even begun to impact things yet, when they do, in my opinion, it'll make the financial crash in 2008 seem like child play. I had planned to buy this Summer but I've postponed this for at least a year now, more likely two.