Advice on Marbella

G

Gunn

Registered User
Messages
12
Hello All,

I'd like to know people's views on getting a holiday AND investment apartment in Marbella. I have seen this location discussed on this forum but the property market has moved on in the last 2 years and wanted to see what the current situation is.

I'd like to get a place for my own use about 3/4 weeks a year. But also it makes no sense if I can't raise some money on it by renting out on a short term-basis just to cover mortgage costs. Do the two objectives go hand in hand in Marbella is what I am wondering? Do you think you can get a decent cash flow out of a property in this region?

My ideal is a 2-bed flat close to in-demand areas like Marbella city, Puerto Banus and close by. Experienced posters can maybe tell me the best locations for rental demand. Research so far shows well located apartments do get booked up and Euro 500 per week is not unusual for a 2-bed.

I know there is the risk with the Euro situation (I am in UK£) but since I will hopefully enjoy the place myself over the next 10 years or more I am happy to take that risk. I may try to mitigate by looking for an undervalued place for example.

Also if people think I am daft to buy here in the circumstances please say so :)


Thanks for the advice.
 
Gunn said:
Hello All,

I'd like to know people's views on getting a holiday AND investment apartment in Marbella. I have seen this location discussed on this forum but the property market has moved on in the last 2 years and wanted to see what the current situation is.

I'd like to get a place for my own use about 3/4 weeks a year. But also it makes no sense if I can't raise some money on it by renting out on a short term-basis just to cover mortgage costs. Do the two objectives go hand in hand in Marbella is what I am wondering? Do you think you can get a decent cash flow out of a property in this region?

My ideal is a 2-bed flat close to in-demand areas like Marbella city, Puerto Banus and close by. Experienced posters can maybe tell me the best locations for rental demand. Research so far shows well located apartments do get booked up and Euro 500 per week is not unusual for a 2-bed.

I know there is the risk with the Euro situation (I am in UK£) but since I will hopefully enjoy the place myself over the next 10 years or more I am happy to take that risk. I may try to mitigate by looking for an undervalued place for example.

Also if people think I am daft to buy here in the circumstances please say so :)


Thanks for the advice.
Click to expand...

I was watching a programme on C4 last Sunday on buying in Marbella area - A Place in the Sun - Winter Sun. Talk on that show was of drops of up to 50% with good rental for prime locations - £500 to £700 pw for 2 bed apartment. The one apartment that was such was 100m from sea, 15 mins from Puerto Banus and spacious for £243,500, monthly charges about £200+. The programme usually has information on its website on C4 which may be useful.

It seems to me you would be paying a lot extra for location, Marbella still attracts a premium, but as they say...I think you know what they say!
 
I was having a look recently at ownersdirect.co.uk and there are lots of properties for rent around Marbella. It might give you an idea of some of the more desirable locations. The properties range from one-beds right up to palatial villas with pools.
 
Hi Gunn

I own an apartment in Costa Del Sol so can speak from experience about renting but not specifically about Marbella.

The rental rates are probably realistic for peak season - June / July. Most renters are UK based and tied to the short UK school holidays. I rented for 6 weeks this year so expect to have to subsidise your mortgage approx 9 months of the year. You need to factor in also property management fees, insurance, apartment community charges, property taxes & water charges (yes they have them already), electricity (can be high in summer with aircon).

We bought in 2007 at the peak with the promise of easily getting rent to cover costs. The reality is a big gap between income and costs.

Make sure you have realistic figures on the above. Location is everything - the majority of renters want a place within walking distance of the seafront or at least the main socialising areas. The rental website mentioned - ownersdirect.co.uk and also the biggest holidaylettings.co.uk are a good start. Look at apartments in the areas of interest and check so see how busy they are - they all show their availability and rates so you can make an educated estimate of income. Definately visit and talk to the locals - rent off somebody in the area and talk to them. In short do your homework. My personal opinion - it is a renters market and there is a glut of properties.
 
Gunn said:
Hello All,

I'd like to know people's views on getting a holiday AND investment apartment in Marbella. I have seen this location discussed on this forum but the property market has moved on in the last 2 years and wanted to see what the current situation is.

I'd like to get a place for my own use about 3/4 weeks a year. But also it makes no sense if I can't raise some money on it by renting out on a short term-basis just to cover mortgage costs. Do the two objectives go hand in hand in Marbella is what I am wondering? Do you think you can get a decent cash flow out of a property in this region?

My ideal is a 2-bed flat close to in-demand areas like Marbella city, Puerto Banus and close by. Experienced posters can maybe tell me the best locations for rental demand. Research so far shows well located apartments do get booked up and Euro 500 per week is not unusual for a 2-bed.

I know there is the risk with the Euro situation (I am in UK£) but since I will hopefully enjoy the place myself over the next 10 years or more I am happy to take that risk. I may try to mitigate by looking for an undervalued place for example.

Also if people think I am daft to buy here in the circumstances please say so :)


Thanks for the advice.
Click to expand...


The Spanish property market is in the toilet.There is a vast supply of properties for sale,many of which have never been lived in, so the realistic chance of you ever making a capital gain in the next decade is minimal.
If you only want to use a place for 3-4 weeks a year then simply rent - and walk away each time and forget about any hassle of trying to cover costs and a mortgage by renting.
And anyway large tracts of the Costas are an absolute dump.
Do your homework but most importantly listen out for German accents or the lack of them - the Germans have always been one step ahead of the Brits and Irish when it comes to spotting good investment areas and they pulled out of Spain years ago.
 
the spanish property market is in the toilet.there is a vast supply of properties for sale,many of which have never been lived in, so the realistic chance of you ever making a capital gain in the next decade is minimal.
Click to expand...

+1
 
Not looking good

Thanks for all of your advice so far. The conclusion seems to be that there is oversupply, falling prices, income unlikely to cover costs. Holiday letting income seasonal. So Why bother buying?

I'll be out there soon for a long weekend and have a poke around.
 
Update on my questions

Was in Marbella recently. Boy oh boy! what a property train wreck. Empty resorts desparate sellers. Properties offered at big discounts seem poor value for money and bad investments. Agents misleading about rental potential. High service charges. Nope stay away.
 
I don't want my wife to read your last post Gunn.

I can imagine what she - who loves Marbella - will say ...

" Wow, there's probably lots of half price deals in M. Let's take a look..." !!
 
The upside is that property bargains await to be picked up but as investment potential it will be a long time before prices rise to their height of three years ago.

Rental potental in Spain is decreasing also. (Some cheap privately booked holidays to be picked up also for those with sense). But, be warned there are difficulties in renting out properties outside of July and August.

OK it is great to have a place in which to retreat (family holidays, time for thought, write that book, long rest etc), but the colour is gone off buying anywhere abroad.

You can rent a 2 bedroom apartment in a central location on the Costas for €500 per month off season. Why buy?
 
Hi Gunn,

I owned a property for 7 years in Spain until this year on the Costa Blanca, liked the location because of lovely beaches and proximity to airports and mild climate in winter. We used it a lot for the first 5 years but sold this year and glad to be out of the property market in Spain. Am now happy to rent - you can stay in some lovely properties and can walk away at the end of the holiday not having to worry about anything and that is what I'd suggest to you.

Angela59
 
You don't have to look too much further than some of the stats [broken link removed] to see where the Spanish economy is heading !
 
You must log in or register to reply here.
Back
Top