Monte Aledo Resort, Murica, Spain

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niceone

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Monte Aledo Resort, Murcia, Spain

Looking at the Sunday Business Post today and see an article on Monte Aledo Resort, Murica, Spain. I would like to know if anyone has experience buying in Murcia or even in this resort and could perhaps advise if this is a good location in terms of security, capital growth etc..

I am interested in investing in a buy-to-let property that I can use myself a couple of weeks every year, that will have good rental potential and reasonable capital appreciation (not looking for much am I). Looking forward to some comments from the 'been there done that' or 'been there didn't do it' pundits out there.
 
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Hi Niceone

I am a little familiar with that area as I have visited the Costa Blanca quite a bit. The Murcia area is in reality an extension of the Costa Blanca building site. There are so many developments in that area, it is hard to see how any rental plans might be achieved - there is just so much available. That is not to say that high quality, on golf course, properties would not be popular but I would be sceptical about achieving worthwhile rental in that area. Admittedly, the development in question appears attractive.

Slim
 
Thanks Slim, I have spoken with the agent and they have advised the following:

Price for 2 bed start €147 upto €155 (launch price)
Expected rental income (peak season) = €1K per week
Expected rental income (low season) = €500 per week
Geared towards spanish tourists
Minimum rental period 15 weeks
Maximum rental period 45 weeks
Management fee TBD
Completion 2007

15 weeks per annum at peak season would cover annual mortgage and other costs !!!

I will look further but am VERY conscious of what you have said !

Looking forward to other comments....
 
niceone said:
Thanks Slim, I have spoken with the agent and they have advised the following:
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Remember that the agent isn't an advisor. He is a sales agent. He earns his crust from the commission he makes on each sale. Take his 'advice' with a large pinch of salt and do your own research.
 
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Niceone, this forum has an active discussion on the Spanish market which you may find useful.
 
Having personal experience of the rental market around Murcia (close friends have two rental properties there), can I just say that there is no way on earth that you're going to get anything like €500 per week in the off season for rentals.

In fact, the most you're likely going to get off season is a big fat €0. You may have a chance of renting on a consistent basis if you're in Murcia itself (which is a lovely, bustling city), but in one of these resorts on the outskirts? Not a chance. There is an enormous amount of construction going on around there, with an already large glut of rentals on offer. Murcia doesn't get the weather to charge that kind of money in winter.

You simply won't get any Spanish tourists in Murcia in the wintertime - you might in the summer, but to be honest the going rate apparently is €400 - €500 peak season, and nothing off peak, apart from Xmas and Easter, which are guaranteed rental periods.
 
Thanks Shermann, and to all others who have provided feedback. It's good to get other peoples thoughts and experiences, I shall now tread very carefully. Perhaps I won't have a holiday home in the sun after all, at least one that is paying for itself !
 
No probs niceone. By all means buy there - it is a lovely part of Spain, and relatively undiscovered, with none of the lager lout package holiday scene you get in other parts of Spain - as you mentioned, the area all around there has traditionally been for Spanish tourists, who are much more family oriented. As I said, I really like Murcia itself - great student town with a nice local feel to it, and the beaches in the area are excellent. Through judicious letting i.e. xmas, easter and part of summer, you may cover some of your costs - just don't bank on your apartment paying for itself entirely!
 
Re: Monte Aledo Resort, Murcia, Spain

Just picked up your comments on this one and can advise that this resort offers something abit different - it has a domed swimming pool as well as golf course, shops, bars, restaurants all the usual. It will be a year round destination. Think Centre Parcs was used as a model for this. Will certainly see high monthly rentals.
 
Re: Monte Aledo Resort, Murcia, Spain

Hi Lauraus - No disrespect intended, but our readers may well be a bit cynical about these positive comments from a first-time poster.
 
Can assure you not an estate agent but am considering investing up there myself and doing my homework. Been to the site and was impressed.
 
Lot of thought been given to what will make it attractive for a rental income all year round and for me with young family it certainly appeals cos of all the leisure and play options - for both big and small kids! The views are pretty spectacular too.
 
I have been active in the purchase of property on behalf of various clients in the Murcia region and indeed live within a few miles of the Aledo development. The area is without doubt beautiful and overlooks the Sierra Espuna park. There are other off development opportunities that are available for the purchaser who is seeking something quiet yet within reach of civilisation.

The rental market would in no way reach the sort of levels that you have been advised. On the coast in Mazarron to achieve anything better than 15/16 weeks is exceptional. You should however consider that any investment you make as long term with the rentals helping your investment not paying for them.

Spanish mortgages are based on the property value, not on the price paid nor indeed on the declared value. It is interesting that it is possible for a non owner of the property to achieve funding by using say their son or daughter as the mortage holder and that loan would not affect their borrowing capacitoies in the UK.

Good luck in your search
 


Year round rental? Who told you that?

Tell him to wash his mouth out with soap!
 
With respect Keri, if you want to sell property to forum members, go and pay for an ad in the paper like all the other agents. In that medium, you can promise all the sun/moon/stars that you like, secure in the knowledge that nobody will challenge you. Here, on the other hand, you are likely to come up against people who have heard it all before!
 

Come off it Keri, of course you are trying to sell this development, just look at your previous posts. Also, there isn't a salesman born who hasn't used the "I will be investing in it myself" pitch. Give us a bit of credit for having some more cop-on than you apparently think we possess.

I'm not saying that this development is a bad one or otherwise; what I am saying is that your thinly disguised attempt to use this forum as a cheap sales platform is one that most of the experienced people here would spot a mile away. Anyone who adopts this kind of subterfuge to try to pass off their properties on forum members would not inspire confidence in me in any case, so my best advice to annyone would be to be very careful of getting involved in what you are offering.

I hope that I have made myself clear to you, and to anyone who might have been thinking of dealing with your project.
 


Hi Lauraus..just my two pence worth...Im a regular visitor to The Costa Calida area of Spain...i usually rent property in and around Mazarron usually on Camposol or Mazarron Country club...there is such a glut of property here that you can take your pick of rental properties at really good prices...for example last Sep i stayed in a 3 bed 3 bath detached villa with pool in a 1000sq yd plot with total privacy..the cost ? just over £680 for 10 days.properties in this area are only rented out on average 12 to 15 weeks and that is for the top of the range...winter lets...practically non existant...Spanish families by and large only take vacations in August.As someone earler posted dont rely on rentals to cover mortgage costs...it just doesnt happen.... there is a massive glut of property in Spain but no apparent lack of new developments..so logically guaranteed incomes from rentals are pie in the sky....however the Monte Aledo development does look very interesting but again id only be thinking in terms of summer lets.The area is fantastic...unspoilt (at the moment)..the Sierra Espuna National park is a favourite haunt of mine..i just hope that this Monte Aledo project does not spoil this fab area...

Cheers...
 
Hi

First time visitor here, and yes I'm in the overseas prop biz, and you can be assured that I wont try to advertise myself here - you know what I mean.

A friend of mine is building a development in Murcia.

In the last few weeks he has had nothing but cancellations as the ass has totally fallen out of the off plan propert market there.

Spain has been taking an absolute hammering for the last couple of months with the result that one of the major builders in Madrid has had 60% wiped off their shares.

If you really want to buy in Spain, buy because you have a love affair with the country, not because you think you will make a profit on re-selling or make rental gains. It just doesn't happen like that.

All that is happening in Spain is that they are removing the 'froth'. When people started buying in Spain years ago, they went out to buy one apartment. They thought that if they bought several units, they could sell them on at a profit. Not going to happen. The property crash is not affecting the sun worshiper as such as they still have their apt to holiday in, only those who were taken in by the 'buy to flip' pitch

Now is an excellent time to buy there, as builders are panicing and are dropping their prices to get them sold. My only concern is that they may not be in a position to complete at all if they dont make enough sales - you know what I mean.

A friend of mine owns a financial company over there and has written some brilliant articles. How do you post a link thing here for you to see it?

I don't want to put anyone off buying in Spain, just to be careful and to please not to depend on rental, selling on, returns on investment etc
 
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