A buy-to-let property is a popular investment for those who want to try and make some additional income. The person will buy a property and then rent it out in order to bring in a regular income, hopefully one that will then exceed the amount that they have to pay out on their mortgage.
Owning a buy-to-let property is popular in the UK, however, that is not the only place that you can try and rent out a property. In fact, if you want to invest a little further afield then it may be worthwhile having a look in Spain.
Buying property for sale in Spain isn’t always easy, so, to help you to make sense of the process, we have put together our guide on buying a Spanish buy to let property.
A popular market
What makes Spain such a good location if you are looking for a buy to let property investment? There are a variety of reasons why you might consider Spain as your next buy to let destination. It may not be an obvious one, but golfing tourism is one of the main reasons to invest in Spain, as golf is a popular sport throughout the entire country and therefore, those properties that are located close to the major golf courses are going to be very popular for holiday rentals all year round.
Golf isn’t the only thing that attracts millions of Brits to Spain each year however; the warm climate, stunning beaches and glorious sunshine also helps to drive demand for holiday rental accommodation in Spain, particularly in coastal areas.
Another reason that Spain has proven popular is because it is easy and relatively cheap to travel to, particularly if you are coming from the UK. All major UK airports offer a variety of options when flying to and from Spain, which means that there is fierce competition on pricing and a wide range of flight times and destinations available, giving UK holiday makers a large number of reasonably prices options.
Short-term or long-term?
In the UK buy to let market, the main aim for any rental property is to have long-term and consistent tenants so that your investment is occupied for as much of the year as possible, helping to minimise any periods without rental income to maximise the return on your investment. However, in Spain this might not be the most profitable approach.
During the low season, you might be able to rent out for a longer term, however, for the high season it could be better to switch to short-term holiday lets which will allow you to charge a premium during the most popular times of the year. If you do your homework and price it right, you can still make it a worthwhile investment by using the high season rental income to offset against the quieter periods.
Choosing the right strategy
Choosing the right strategy as a buy-to-let investor is a very important decision that you have to make, simply because it will lay the foundations for how successful your investment can be. Although this decision is heavily influenced by the type of property that you buy, the decision ultimately is still yours to make, and structuring your strategy to suit market trends is almost certainly the most effective way to go.
A short-term rental typically pays much more than a long-term rental in terms of weekly or even monthly income, whereas a long-term rental will require far less work from your side and can often bring an element of stability and security to your investment. Many investors believe that the best approach is to let their property out more long-term throughout the low season, and then letting it out short-term throughout the duration of the high season.
Although this approach doesn’t suit every investor or type of property, it is arguably the best way to make strong returns on your investment. This strategy requires careful planning before purchasing any property, with your search for a property based on the strategy that you choose to take, especially if it is this one. As an added bonus, whilst letting your property out to holidaymakers and locals to the area, your investment property in Spain is experiencing capital growth, which brings greater profit when you decide to sell the property.
For more information on buy-to-let investment in Spain, please contact Hopwood House.