In past blogs we have talked about renting out your Spanish property. In this, our latest look at the Spanish market, we are happy to put forward pointers which may help you to think of a property in Spain as” Buy-to-let”.
Just as in the UK this is a different proposition from just having a property with a rental yield. Here are some ideas which you may want to consider to help you decide if this is for you.
Location, as in the UK, matters. A lovely property in a picturesque Cornish fishing village is great for holiday income but often not so great for long-term lets if there is no work nearby. This is the same scenario in Spain. Towns and cities where people are both working and living give a market for Buy-to-Let income. Some of the more accessible “Resorts” could still attract a rental market if they are also near to amenities such as hospital, schools, shops etc especially if there is quick and easy access to Spain’s excellent main road and motorway system.
This is where an adviser with local knowledge should be able to point you in the right direction. Towns and cities of inland Spain will have a good need for year-round rental properties but limited holiday appeal. The cities and towns along the costas can be included in Buy-to-let searches but the type of property ( see below ) needs to be carefully thought about.
When the thoughts of a Spanish property come into mind it is often a villa with a pool near the sea. Yet this kind of property wouldn’t automatically be seen as a Buy-to-let Property unless it is in a favourable location as outlined above. Just as in the UK this market generally seeks out apartments, townhouses etc within an urban area. This is where professional people will be looking to rent as well.
Spain, as many continental countries, has a tradition for renting rather than buying properties. There are still many good quality apartments available. We have sourced two just recently for clients. Both were under £100,000. One was 3 bedrooms 2 bathrooms. The other was 5 bedrooms 3 bathrooms. No, they were not brand new shiny modernistic buildings but good quality apartments in traditional buildings within a city. So, all amenities, transport links and workplaces were close to hand. No they wouldn’t have appealed to the holiday market as they were for everyday living not a sun, sea, sand holiday!
Young professionals in Spain have the same problem as here in the UK, that of finding a deposit to buy a property. Yet they have ample income to pay a good level of rent. Indeed as said above many Spaniards won’t be looking to buy, but just to rent for the foreseeable future. In the past we have also had people who are retiring to Spain but don’t want to live in a touristy area but want to live in a traditional Spanish location.
The long-term rental market is buoyant in Spain and in our opinion will remain so. In similar vein, and just as importantly, there is an abundant and varied availability of suitable good quality property to accommodate this need.