Spanish Property News

One of the topics we often get questioned about is property rental in Spain. In times such as these most people will consider whether their property in the sun could be generating some income to pay for itself.

The way in which you rent your Spanish property out is determined by the type of property you have, its location and whether you wish to use the property yourself.

There are two basic rental types in Spain - long term or holiday rentals. Holiday rentals can be 3-4 days up to 3-4 weeks. Typically they are located in resorts or areas known to be popular with the local and / or foreign tourist market. Properties on developments with pools are very popular for holiday rentals, as are private villas with pools.

Long term lets can be located in cities, the country or resorts. There is really scope for any type of property to be suitable as a long term let. Young commuters may be looking for a well located apartment while retired ex-pats may be searching for a quiet country finca. It's worth noting that I've had several conversations with other agents and marketeers recently and all have said that enquiries for long term lets are on the increase - perhaps a sign of the current economic climate.

Both types of rentals have their pros and cons.

Holiday rentals can provide an excellent rental yield with a weekly rental charge. Typically in Spain the months of July and August are most popular however here on the Costa Calida the summer rental season can extend from April through to October. Depending on where in Spain your property is located you may also get winter rentals - if you are near golf or skiing facilities for example. If you set your rental rates competitively and target your market you should find new renters each year and build up repeat bookers. Another big advantage is that both you and your family can still use the property. You just book out the dates you will be staying and take bookings for periods when the property would normally be standing empty.

However holiday lets can have higher overheads and can be more labour intensive. The property will need to fully equipped down to the cutlery. You may hold a damage deposit to cover breakages but higher than average wear and tear on both furniture and soft furnishing is not uncommon. Utility bills are payable by the owner and of course you have limited control on expenditure in this area. You will need to arrange for key handover / meet & greet, linen & towel laundry, cleaning and basic maintenance. The bookings themselves need to be well managed and you have to be prepared to continually monitor your property to ensure it is maintained to a good standard throughout the rental season.

Mid to long term lets can be furnished or unfurnished and usually tenants do not expect a fully equipped property (i.e. crockery, cutlery, linen etc). Although the property is unavailable to you for the length of the contract the utility bills are paid by the tenants and you do not have the problem of it standing empty. You will have to ensure any property maintenance problems are dealt with swiftly. While monthly income may be lower than holiday rentals you do receive regular income for the length of the contract and do not have the hassle of arranging cleans, changeovers and laundry.

We run a successful holiday rental apartment ourselves and while it is hard work we have a streamline process from advertising through to the actual rentals which works well for us. However if you live in another country it can be difficult to manage everything from a distance. If you prefer a less hands-on approach you can always employ an agent to do as little or as much of the management as you require.

With long term lettings I would always recommend using an agent with experience in this market to manage your tenancy contract, the tenants and the property.

In summary renting out your Spanish property can be a very good way to generate income from the property. You should always check your insurance policy, use a tenancy agreement and also take relevant legal and tax advice. Holiday makers are still flocking to Spain to enjoy the sun and increasing numbers of residents are searching for long term homes, so if you have a property in Spain, or you are thinking of buying one it is certainly worth thinking about.

Labels: Costa Calida Holiday Rental, Property Rental Spain

Over the weekend I spent some time with two clients who are getting reading to complete on a property in Murcia. Not an unusual activity for us here at Dream Spain, however these clients did not buy through our company. Unfortunately for them, their agents made and charged for great big promises of fantastic customer care services that have disappeared leaving this lovely couple high and dry on their property purchase.

People who have not bought a Spanish Property often wonder why completing the buying process without an agent is a problem. Indeed some people actively seek to avoid Spanish property agents in the hope of making a saving.

I am the first to agree that not all Spanish property agents are equal, and unfortunately over the last few years there have been a number of big companies with booted and suited sales staff whose sole mission has been to sell and up-sell, not provide an invaluable service. Thankfully the recession has had the positive effect of either sending these companies running or at least making them rethink what they need to offer their clients.

So what does a good agent bring to the client? It should go without saying that they must have a good choice of properties to view, local experience of their property market and provide genuine advice on how to spot the property which suits your needs. They should be able to help you negotiate a great sales price on a resale property or payment terms on a new property.

They should have contacts in finance and currency exchange which help you save time and money on currency transactions and the financing of your property purchase.

Then they should be there to keep you updated throughout the sales process - offer advice on pre-sale tasks you need to complete and find the most economical ways for you to complete those tasks. When you complete on your Spanish property their advice on furnishing and fitting out your property ought to be focused on getting you the best dressed apartment for your budget.

In fact if you are just looking at the financials I know that we have been able to save our clients over 7,000 Euros per sale during the completion process by helping them with one simple task. I'm not even counting any other savings or the hours of work and worry we have saved them by being here on the ground in Murcia with the connections that simplify the buying process.

The couple I was with on Sunday considered pulling out of their property purchase when they found out their agent had disappeared. They were concerned about how they could cope with the process. Now however they are looking forward to their completion and spending time relaxing in the sun.

Wherever you are thinking of buying in Spain, choosing a good agent is an essential part of a successful purchase. Look for one that is well established, locally based, service orientated and of course recommended by people that have successfully purchased their own property in Spain.

Labels: Buying Property in Murcia, Discounted Spanish Property, Spanish Property Agents

The latest news update from the Spanish property portal Kyero confirms what many Spanish property agents on the ground have been seeing - Spanish property prices have touched bottom.

Martin Dell from Kyero states that "I continue to predict a wave of foreign investment money flowing into Spanish property. Word on the street plus confirmation by Knight Frank that real Spanish property prices have bottomed out means that what we're waiting for now are the investors."

At Dream Spain we are seeing increasing amount of buyers looking at property on the Costa Calida. When you can buy a detached villa within walking distance to the beach for 160k euros you can understand why.

We will continue to add more great resales to our Spanish property portfolio over the next couple of weeks, to complement the really interesting new build properties already available.

Spain is still the popular choice for foreign buyers - I have no doubt about that. As I write this in November it is 25 degrees here on the Costa Calida. Property is available at great prices, interest rates are low, it all makes perfect sense.

Labels: Costa Calida Property, Murcia Property, Spanish Property Prices

See just one of the reasons why we love this part of Spain.....

Labels: Costa Calida, Murcia, Property in Spain

Tinsa, the leading valuation company in Spain, release a monthly House Price Index, and this is seen as the best indicator we currently have of house price trends in Spain.

The indication that the decline in Spanish Property prices has bottomed out has been reinforced by the latest Tinsa index. In June we saw that the Tinsa House Price Index was indicating a static monhtly decline in property prices of approximately 10% year on year. August 2009's Tina House Price Index once again shows a year on year decline of approximately 10%.

How does this translate to prices on the ground on the Costa Calida? New build property prices have certainly remained static over the last few months, as have the prices of resales owned by those that are not in a rush to sell. Where we are seeing those elusive 10%+ reductions are from those owners who need to sell quickly, or with developers who have a few key ready properties left on a new development. As you can imagine these properties come and go quickly - so if you want to to know what bargains are available right now do contact us.

Labels: Costa Calida Property, Murcia Property Prices, Spanish Property Prices

While tourism in Spain as a whole suffered a 6.1% decrease this July compared to the previous July, the region of Murcia saw a 24.3% increase in visitors.

A survey conducted by Frontur for the Department of Industry, Tourism and Commerce reveals that during the month of July the Region received 119,867 foreign tourists compared with 96,462 in 2008.

Certainly having just experienced July and August here in Murcia we can confirm that it was a busy holiday period. It certainly helps that Murcia has a good choice of low cost airlines arriving at Murcia airport, a great climate and a fabulous coastline. Just the right mix for the perfect overseas property location.....and with some great property offers available why not start your search now?

With thanks to The Costa Calida Reporter online newspaper for the Frontur data.

Labels: Buying Property in Murcia, Buying Property on Costa Calida

We looked at the Tina House Price Index some months ago and saw that it had suggested the Spanish Property market was bottoming out.

Now five months later the figures certainly seem to confirm this. The steep decline in Spanish house prices seems to have abated and instead we are seeing prices declining by approximately 10% year on year. This means that those Spanish Property buyers who have been sitting back and waiting for the lowest prices can now consider moving into the market. There are some good discounts to be found on Costa Calida property but as the index suggests property prices are now remaining static. If you would like to take advantage of these discounts while they are at their best, contact us now.

Labels: Buying Property on Costa Calida, Discounted Spanish Property