Bold statements are often made regarding potential investment return by agents looking to sell property. Often these statements are exaggerated and more often than not, these statements are simply not true.
With 30 years of experience in the Spanish property market, we have seen enough to help you identify patterns and bring you some clarity on investment options.
Factors to Be Aware of:
- A sales agent with no rentals division cannot advise you properly on an investment purchase that includes rental income. It is easy to make statements about rental income potential when you are not involved in the process.
- Without at least 10 years experience in the Spanish property market, an agent will not have a clear understanding of the peaks and troughs of this specialist industry.
- A good agent will help you to clarify your investment objectives. Every investor has different goals and only once they are established can you move forward. A complete “fact find” should be compiled in order to gain clarity on what kind of investment you are looking for.
Investments generally fall into one of the following categories:
1) First purchase abroad (holiday or second home)
- This property is bought for personal use for holidays and prolonged periods in Spain. The owners have no interest in renting out the property. The investment element is wanting to buy a property with capital growth potential to give security for the future and the option to buy a larger property when the time comes.
2) Property for own use with rental income supplement
- These investors buy primarily for their own use but subsidise the costs with rental income for x amount of weeks or months per year. This can be to family and friends or via rental websites and portals. This allows them to own their place in the sun with less financial burden.
3) Investment only
- This investor has no interest in using the property for personal use. The investor seeks to gain income through rental of the property, either long term or through holiday lettings of which both have their advantages. Capital growth is also an important objective for this investor.
Generally, investors fit loosely into one of these 3 categories, with others lying somewhere in between. It is important to identify plans for a property before buying. Sometimes clients decide a year after purchasing that they wouldn´t mind some rental income but have bought in an area that is not best suited for rental income generation. See our rentals guide for more information on creating a profitable rental property.
We are here to help you gain some clarity on your investment options and offer a free, no obligation consultation. Whether you decide now is the time to invest or not, we are confident that you will make that decision better informed and with more confidence after contacting us.
Contact us at firstname.lastname@example.org or call us on 966 99 00 04