Making money from your property in Spain

There's just one thing better than owning a holiday home in Spain - and that's making some money from it too. . The buy-to-let market may be struggling in the UK, but in Spain, given a good property in the right kind of area, the demand for holiday rental properties is still high. So any income generated from buy-to-let is a bonus beyond the capital appreciation you can expect from your investment, which is currently predicted to be about 10% on average in 2005. Spain is still the favourite place for investors hoping to combine pleasure and profit by buying a property that they can then rent out. And the Costa del Sol and Costa Blanca are the places that attract the greatest number of holidaymakers looking to rent a property in Spain. Some buyers invest purely for this purpose, perhaps as an alternative to investing in a pension fund, but with no intention of using the property themselves at present. Other buyers find it a useful way of financing the purchase and ongoing costs by renting out their house when they are not staying in it. Despite what you may be told about 'year round rental potential', be realistic about how much you can rent out your property. The average period that a Spanish property is let out is 10 weeks a year. This, of course, will be far higher for a well-maintained and desirable property in a popular holiday area, and less for something in need of a repaint and a long way from the beach, amenities and transport. Though bear in mind that in the most popular resorts, such as Marbella, the competition for rental properties is immense - and there may be little to distinguish one two-bed, two-bath apartment on a beachside complex from the next. When buying, be clear whether you are buying solely for investment, or partly for your own use. This will clearly affect what kind of property you buy - and if buying for both purposes, you may struggle to work out whether to compromise on the aesthetic or financial element to make the most of your purchase. If your taste naturally sees you roaming into the wilderness of inland Andalucia, be realistic about just how many holidaymakers will want to stay somewhere that remote and appreciate the same rural charms as you. For pure investment, a golf property on the Costa del Sol is a pretty safe bet, and Marbella - within 45 minutes of Malaga airport, and with numerous courses within a 40 minute drive - is a good option. A similar property on the Costa Blanca, near Alicante, will cost less and capital appreciation will be less, but there is still a huge golf holiday market to tap into there. Another important decision is whether you intend to let out your property for long periods (eg. 6-12 months) or on a short-term basis for holidaymakers. This will be determined by how long you want to stay there yourself - and how much hassle you can handle. Holiday lets may bring in tempting income -