Buying Spanish property to let

Buying Spanish property to let has become one of the favourite money-making opportunities of foreign investors since Spain took flight as a mass market holiday destination in the 1970s.

All the indications are that the Spanish housing market is now beginning to stabilise after a period of absurdly over-inflated prices. But whilst the boom years might be over for the get rich quick investor, buying a holiday rental property in Spain still represents a golden investment opportunity for those who do their homework in terms of where and what to buy.

The key aim of most “buy to let” investors is to secure the right kind of property which will generate a decent rental income for a large part of the year, not just in high season.

A good starting point is to identify the top Spanish holiday destinations – such as the Costa del Sol and Canary Islands – where the climate ensures a year-round tourist trade. If you broaden your target audience beyond the seasonal summer sun tourists you’ll have more chance of securing mid and low season lets. So consider the various attractions and activities which are drawing out of season holidaymakers to a particular area and buy a property which meets their needs.

Costa del Sol holiday villas and apartments either on or near a good golf course are an obvious example of an ideal buy to let investment. Buy a golf property which is also near the sea, has its own swimming pool and is within easy reach of good shopping, entertainment facilities and a thriving nightlife and you’ll be well on your way to establishing a successful letting business.

Good transport links are another obvious plus when it comes to pinpointing the perfect rental property.  Ideally the property shouldn’t be much more than an hour’s drive from an international airport with low cost charter flights (serving all the main UK airports if British holidaymakers are going to be your main source of income). Whilst you as a buyer might hanker after a rural retreat at the end of a mule track high in the mountains, that’s not what the vast majority of visitors to Spain have in mind when seeking a holiday rental.

To maximise your rental income you need a place which is convenient and has broad appeal both as a holiday home and in terms of local facilities and attractions.

The advice of holiday property owners who have been in the letting business for many years is to go as upmarket as you can (without over stretching yourself) and to kit the property out with good quality fixtures, fittings and furniture. The better the property, the higher the rental income. And experience shows that higher grade holiday rentals are less subject to damage, theft and the ravages of careless clients than their more down market counterparts.

Spanish properties, even in the warmest southern areas, can be decided chilly in the winter months. So a log fire, central heating and a heated swimming pool may all be wise investments to secure low season lets.

« Click here for our investment guides to Spanish property