Last updated on October 7th, 2019 at 06:04 pm.
Purchasing large villas in Spain to rent as an investment is a wise financial choice. Here, we explain how it is likely to bring significant and frequent financial returns.
Nowadays, most people are booking large villas in Spain for their holidays online. Many sites such as Airbnb and Booking have done away with the need to rely on a travel agent to find their accommodation, and as such are in greater control of arranging their holidays. This power shift from traditional travel agencies to homeowners and holidaymakers has resulted in excellent investment opportunities. Holiday-home owners enjoy a high income that is particularly frequent during the on-peak summer months. Holidaymakers are increasingly looking to spend a little more for their own private luxury, especially since the internet has made it easier.
What makes investing in large villas in Spain a good idea?
In an era of continued economic uncertainty with low interest rates, many people are wondering how to invest their money sensibly, and with guaranteed returns. Investing in large villas in Spain provides an opportunity to earn a stable, regular income on savings as an alternative to other forms of asset management. Properties are available at relatively low prices and provide a steady return on your investment with little maintenance to be concerned about.
However, avoid diving in without doing a bit of research as several factors make a holiday villa especially attractive to tourists. Some of these are:
- Location – One of your most important considerations is whether your villa is situated within driving distance of the golf club, beach and other attractions. Holidaymakers want to be able to get to these amenities quickly and easily and nearby villas attract greater demand.
- Price – Think sensibly about the price you charge for stays. It is important to consider how to keep your villa filled throughout the year, to keep your investment returning constantly. Better located villas attract higher prices but cost more upfront. Think about promotions and other ways to attract people after researching your neighbour’s prices during peak and off-season times.
- Facilities – Many holidaymakers want facilities like a swimming pool, large kitchen, jacuzzi, car space and a garden. What attracts you to renting a villa should be what you would want your own to have.
Keep an eye on legal matters
Just as if you were purchasing property for yourself to live in Spain, make sure all the paperwork is above board. Before looking at large villas in Spain, discover whether the property still has debts against it. An essential way of making sure that the legal side of purchasing is going as it should is to hire a reputable lawyer, particularly one who comes recommended and has worked with high-end villas before.
Prepare for peak time
From May to September you should expect your greatest amount of guests. This means that you will want to be ready with the keys for the beginning of May when the beginning of your rush should begin. Many people like to be directly involved with the management of the property, welcoming the guests and being on-hand to solve any issue directly. On the other hand, other villa owners prefer to employ a letting agent that will keep watch on a property and be in contact with renters, allowing them to sit back and enjoy the profits.
What else is there to consider?
Local police should be informed about the presence of other people staying in the property, no matter how brief. Furthermore, purchasing large villas in Spain for rental purposes changes the type and amount of tax you need to pay. Consider hiring a tax adviser who can give you independent advice on these matters.
Make dependable returns from your savings
Whether or not you stay in the villa yourself, purchasing property for investment purposes in Spain is an effective money-making enterprise. A dependable and regular monthly income is very encouraging, particularly during unstable economic climates. When purchasing large villas in Spain, a reputable solicitor you can trust that speaks your language is invaluable.