If you are thinking about buying real estate in Spain and are looking to make money from your investment, have you thought about buy to let?
Owning a buy to let in Spain means that not only have you invested your money in solid bricks and mortar, you also have something to enjoy with family and friends should you so wish. Provided you invest wisely, buying real estate in Spain as a buy to let investment will not only pay for itself over time but you will also have fun whilst doing so.
The term “buy to let” simply refers to the purchase of a property through the normal purchase procedure with a view to renting out the property for a regular income, ideally exceeding annual mortgage repayments and other incurred costs.
Spain has a huge “Buy to Let” market due to the increasing demand for accommodation, for both year-round long term rentals and short term holiday lets in the Summer months. It is this demand that has driven many people from all over the world to buying real estate in Spain. With so many low cost airlines servicing such a wide range of UK, European and worldwide airports into many locations in southern Spain, on a daily basis, it is no surprise that investors look to southern Spain for solid rental yields on investment property purchases.
Due to the increased popularity of our Personal Property Finder Service, we have launched our new website, Buyer’s Agent Spain, dedicated to buying real estate in Spain. Our first dedicated series of articles are about Buy To Let in Spain.
In the first article, An Introduction To Buy To Let in Spain, we introduce you to the factors you need to consider before investing in a buy to let in Spain.
- why investing in a buy to let in Spain is a good idea
- how to safely invest in a Spanish buy to let
In the second article, Investing in Rental Property in Spain: Short Term vs Long Term Rental. we consider the pros and cons of short term and long term rentals in Spain, in relation to your buy to let property.
When investing in rental property in Spain, both types of rental have their advantages but also their risks. With careful research and planning, expert guidance and assistance, you can be sure of success whichever decision you take.
In the third article, 7 Legalities to Understand Before Investing in Buy To Let Property in Spain we discuss how the decision to invest in buy to let property in Spain is not to be taken lightly, that careful market research, independent expert advice and legal support are essential for a successful investment.
We believe it is fair to say that the horror stories the newspapers and TV shows like to portray are of people who have invested in buy to let property in Spain who have not followed those steps!
Nowadays the Spanish property market is better regulated than in the past and contracting an expert and independent lawyer eliminates any risk when purchasing. (Please remember that we only offer our bespoke property finder service to purchasers who enlist the support of a suitably qualified lawyer).
We take a brief look at a few legalities you need to be aware of before investing in buy to let property in Spain, including:
- Licence of First Occupation (LFO)
- AFO Certificate (Asimilado Fuera de Ordenación)
- Energy Certificates
- Rental Property Registration
- Tax Obligations
In the fourth article, How to Calculate ROI on Spanish Rental Property we explain how investing in a Spanish rental property can provide you with not only a second home in the sun but also steady rental income or capital appreciation when the property is sold for a profit. If your Spanish property purchase is primarily an investment, it is important to measure the return on investment (ROI) of the property to determine the level of profitability.
When deciding where to invest in your Spanish property, be careful, ROI calculations can be easily manipulated – and certain variables can be either included or excluded when making the calculation.
We review two examples for calculating ROI on Spanish rental property. We look at purchasing with cash and also with a mortgage. We highlight additional costs that sellers agents may not always remember to warn you about when making your calculations. We include a link to our Buyer’s Agent Spain online tool to calculate the ROI on Spanish rental property, for your own use,
In the fifth article, Buy To Let: Why Not Invest In A Spanish Renovation Project? we show you how making a healthy profit on your buy to let investment need not break the bank. Provided you do your research and follow our advice, a wise investment can bring in a healthy return.
Needless to say, premium rental income villas and chic city pads in sought after locations come at premium prices. If prime real estate doesn’t fit your budget, a Spanish renovation project may be the opportunity you are looking for.
We look at different types of properties to consider for your Spanish renovation project.
So, if you are interested in making money when buying real estate in Spain, what are you waiting for? Visit Buyer’s Agent Spain and put your Spanish property search in safe hands!
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