Buy to Let in Spain
Andrew Carnegie said, 'Ninety per cent of all millionaires become so by owning property.' More money has been made in property than in all industrial investments combined. Why? Property values do not depend upon emotions but upon the hard facts of supply and demand.
A buy-to-let property, when properly purchased and correctly managed, but then sold if it gives an unsatisfactory financial return, offers the greatest economic benefit of any form of investment.
Top Tips for Buy to Let Success in Spain
It is important that the general location should have been visited on a few occasions since there is no substitute for first-hand knowledge.
Consider whether the property is served by an adequate infrastructure, such as airport, roads, utility supplies, shops and medical facilities.
Should the property be a villa, chalet or apartment?
Should it be coastal or inland, in a busy location or secluded?
Consider the amount of personal occupancy and what happens to the property when not lived in.
What is the attraction of the property in the eyes of the tenant? Is there a tenant market for the property?
Consider if there is someone locally who can be relied upon to manage the property. If not, consider engaging the services of a local management agent.
Consider what the costs are in each case.
What funding is required? Can the property be bought for cash? If not it may be appropriate to take out a loan.
In Summary
- Becoming a landlord requires skills. The foremost is a commitment to property.
- Even today there is a stigma associated with being a landlord.
- The buy-to-let market in the UK is expanding rapidly fuelled by changes in social patterns and an alteration to the UK mortgage lending laws.
- There have been successive and parallel changes in rental laws in both the UK and Spain. The rental market in both countries is now considered to be in equilibrium.
- The new landlord is young and upwardly mobile. So are the tenants.
- Buy-to-let abroad has the same characteristics as the UK market - with sun and local customs.
- A top tip for letting abroad, in fact three top tips - location. location and location.
