Still a good investment to buy property in Mallorca?
Time to invest in mallorca property, hundreds of great investment properties.
The question of property a good investment these days is something that many people ask themselves. A better question to ask would be if rental properties are a good investment?
Real estate is a great investment option. It can generate an ongoing income source from the rental. It can also rise in value overtime and prove a good investment in the cash value of the home or land that you buy. However you need to be sure that you are ready to begin investing in real estate.
In my opinion, a good property investment in Mallorca would have the following attributes:
- Expect at least a return of 3% yearly after deducting all expenses
- Buy under the lastest valuation, don't look at values given in past years
- Is in an area with good access and within short distance to the sea and beach, restaurants, etc.
What kind of property to look for
You should consider s few things before you purchase a home that you plan to rent our short term or long term. The best way to do this is to save up and pay cash for the home. At the very least you need to be able to afford the payments on the property when the property is vacant, otherwise the property may end up being a burden instead of helping to build wealth.
What I need to consider
If you are intending to buy a property investment in Spain, particularly in Mallorca or Ibiza, you'll need to consider the total purchase costs including the transfer and VAT taxes of taxes and the yearly running costs. Sometimes it is easier to rent our through a Mallorca rental company and contract through them for the full mansgement of the property. This takes away part of the burden of caring for your villa or apartment.
You need to price your rental property so that all of these fees and other expenses are fully covered. Additionally you should take the first few months of surplus money and set it aside to cover the cost of repairs on the property. You should carry good insurance on the property and be prepared to deal with additional costs and other situations as they arise.
If you are purchasing land that you plan to sell at a later date you need to research the land deed thoroughly. Find out if any roads are planned close to the land you purchase and consider how that will affect the property value. At times it will help make the land more valuable, at other times it will decrease the value. Once you have done the research, you should be able to make the correct decision about purchasing it for investment.
Reasons to invest in Mallorca Properties
Mallorca has a lot of areas to buy as an investment. From luxury estates in the Southwest Area to comfortable, well build Villas in the Northern Area in Mallorca. A country home in the Midland or a atonishing Estate in the East or West coast. You will never loose value by buying in Mallorca.
Get in touch with our head property office directly:
Balearic Properties Head Offices
Via Pollentia 3 , 07460 Pollenca Old Town Mallorca
Tel: +34 971 53 22 21 - Fax: +34 971 53 45 06- Email: [email protected]