2. Buying as an investment
If you're buying a Spanish property as an investment, rather
than as a permanent home, you'll probably be looking for a
villa or apartment with good letting potential. After all,
you may as well enjoy the income from it while you sit back
and watch your capital grow.
I know many owners who make a very decent living solely from
letting their holiday homes.
A friend of mine stumbled into the letting business by accident
four years ago when he inherited his mother's villa on the
Costa del Sol. He did so well out of it in the first year
that he sold his yacht and business to finance the purchase
of another two villas. When fellow owners saw his success,
they asked him to manage the letting of their villas.
He now owns or manages nearly 30 villas, pulling in an enviable
gross income of more than £800,000! That includes the
big commissions he earns from referring all his clients to
a local car hire firm.
One of the secrets of his success (besides the fact that he's
got a great deal of business acumen) is that he specialises
in top of the range, luxury villas which are beautifully furnished
and exceptionally well equipped. Extra comforts such as central
heating, log fires and thick rugs enable him to secure bookings
for about eight months of the year. Christmas, New Year and
Easter bookings bring in as much income as the high season
Well, maybe you're not in a position to buy the most luxurious
of villas...but take the advice of seasoned holiday property
owners and go as upmarket as you can possibly afford. And
don't skimp on the furnishings and extras - quality and
be appreciated by your guests. They'll probably come back
year after year and tell all their friends about your villa.
The same applies even if you're buying a small studio apartment.
Furnish and equip it well and pay attention to small details
- a welcome pack with helpful information, a bottle of wine
in the fridge and some Body Shop goodies in the bathroom all
make a huge impression on people (especially women!).
Miserly owners who try to cut costs (and there are plenty
of them around!) only succeed in shooting themselves in the
foot. A family who rented a lovely three-bedroomed villa with
a private pool on the Costa Blanca last August were horrified
to find saucepans with broken handles and a motley collection
of mugs and glasses. Needless to say, they WON'T be returning.
Location, as highlighted in the last tip, is everything
especially when it comes to holiday letting. A private or communal
swimming pool is essential for successful letting as is easy
access to the beach, shops and nightlife. Your holiday let
will also need to be within easy reach of an international
airport with regular charter flights.
Sure, you can go for a lovely little mountain hideaway in
the back of beyond and aim for the more "discerning" holidaymaker...but
you won't make your fortune that way!
3. Must I use an agent to handle my Spanish property purchase?
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