Posts tagged with "moraira holiday rentals"

Spainish Property Update Nov 2013

Statistics released by the Central Government Public Works on property purchase during the second quarter indicate a resurgence of interest in buying property in Spain. Figures demonstrated an increase in sales in five of Spain’s 18 autonomous regions. The province of Alicante saw a total of 3,543 properties purchased making it the most popular province.

Interestingly, 54% of buyers in the province of Alicante came from abroad compared to a national average of 17% across Spain. The British are the principal buyers, mainly retirees, followed by Belgian, French and Russian purchasers. Furthermore, according to figures from the National Council of Notaries up to June 2013, 70% of the homes purchased in Spain were paid for without mortgages, whereas, prior to the economic crisis only 37% of Spanish homes were bought with no loan. One reason for this adjustment can be attributed to the lower prices of property since the economic crisis. Indeed, a study conducted by the Pompeu Fabra University revealed some areas of Spain have seen price reductions of up to 50%. These price corrections have stimulated investors to consider property as a viable option when planning their financial future. You will see that this graph clearly indicates what has been happening since the property crisis in Spain. Spanish Property Sales graph 2006-2012

There has been a change in the financial tide and as the banks lose both trust and credibility, investors are beginning to modify their attitude and behavior towards their investments. In addition, the precarious state of stocks and shares has left investors facing the challenge to find the foundation for a more resilient investment. Furthermore, the ridiculously low interest rates currently offered to savers leaves no doubt that a more constructive approach to investment is required. In short, the lost rapport, damaged trust and jaded attitude towards traditional avenues of saving and investing has resulted in a revolution as individuals search for a healthier return on their money.

The emerging savvy investor is recognising the value of a tangible investment. For example, in Moraira and Javea you can purchase a stunning 5-6 bedroom villa in a prime rental location for around 483,000 to 647,000 euros including the 12.5% purchase cost. The historical income of a property of this nature is around 40,000-50,000 euros gross, per annum. Or perhaps you could consider a property with four bedrooms offering an income of 25,000-30,000 euros annually for a purchase price of circa 400,000 euros.

The highly desirable areas of Moraira and Javea offer unspoilt resorts with beautiful coastline backed by spectacular mountain ranges. The wealth of charm and tradition is maintained by strict conservation rules ensuring the area remains unblemished. Attracted by the sun-soaked, fun-filled promises of the Northern Costa Blanca area visitors are also treated to surprisingly stunning countryside with dramatic landscapes, green vineyards, almond groves and orange orchards. A short drive from the coastal towns leads you to between craggy mountains dotted with traditional white-washed villages. Follow the narrow mountain passes and head high to be rewarded with breath-taking views. As you ascend you may be lucky enough to discover, nestling on the mountain side, traditional family run restaurants offering simple delicious food and wine menus to satisfy the hungry traveller. These unique experiences along with one of the best climates in the world offering 300 days of sunshine each year ensure visitors repeatedly return to the unspoilt area of North Costa Blanca.

In order to maintain a healthy return on your investment you will need to consider how to manage the property. Some owners choose to hire a property management company who offer a complete package acting as the lynchpin between property owners and rental guests. They take responsibility for advertising, bookings, maintenance, cleaning and pool care. A reputable company will offer good service resulting in repeat bookings. A letting agent of this nature typically charge 30-40% for their service. On a property costing 438,000 as mentioned above, this offers you an income of around 24,000-28,000 euros, a return on investment of 5-6%. Alternatively, you could maximise your return on investment, increasing it to 7-8% by choosing to orchestrate bookings and advertising yourself. There are many small businesses in the area that you could arrange to take care of the changeover and pool care.

The chances of capital growth in the highly desirable Javea and Moraira area is very realistic. Prices have now stabilised and inflation alone will guarantee growth in your investment. Furthermore, vendors are pricing their properties realistically and are willing to negotiate. Javea, Moraira and the Bennisa Coast have sustained reasonable property sales throughout the crisis. The outlook is positive for this beautiful area of the Northern Costa Blanca.

If you are considering a purchase there are a number of elements to consider. For example, a north facing villa may rent well but if in the future you wish to sell it, you risk excluding Northern European buyers as they crave sunshine all year round. Engaging the services of a professional property investment advisor will ensure all gems of information are brought to light. By covering the complete market of properties available they will be able offer you the much needed insight and reveal the excellent opportunities available.

Have a comment on Spainish Property Update Nov 2013?

Be the first to comment!

Posted by on 11/16/2013 18:51:00

Whats the chance of renting your property in Moraira

If you have a property in Teulada-Moraira – perhaps it’s a holiday home that’s vacant for much of the summer – and you would welcome the chance to defray some of the costs of ownership – then all available statistics suggest that the renting of your property is a real possibility for you.

The occupation rates for Teulada-Moraira were higher than those of 2012 – 93.33% in August, up from 87.48% last year and 80.44% in 2011. In July this year it was 73.3% versus 71% in 2012, and 64.41% in 2011. The June figures show no major change – the 52.25% of 2013 was slightly lower than the 55.76% of 2012, but up on the 46.11% of 2011.

In June, July and August this year a total of over 15000 enquiries were made at our Office of Tourism by over 7000 people. This far exceeds the number of previous years. Undoubtedly the new Town Hall location is a factor in the increase, but so is the larger number of visitors to Teulada-Moraira.

It’s interesting to note that French tourists were the most common this year, followed by the UK and Germany. There were lots of newcomers from Eastern Europe and Scandinavia, and it was good to see a surge in Spanish visitor numbers, many from other parts of the Valencian Community. Clearly owners need to take this into account when planning the marketing of their property to attract renters.

Local mayor Antoni Joan Bertomeu declared himself to be very happy with the tourism results for 2013, but pledged more effort to continue the trend during the next year. He also declared that new leisure alternatives would be put in place, to allow visitors to enjoy Teulada-Moraira all year and not just in the summer months.

The Town Council is working on a series of projects to make the area an even more attractive proposition to visitors. For example, a lot of money is going into a local street repair programme – 100000 euros to be precise. Not only will the improved road surface be better for our elderly motor vehicles and people, but it will continue to upgrade the appearance of the holiday resort of Teulada-Moraira.

Then, in an area called La Sabatera, a 5000+ square meter plot of land is being developed as a green zone. Rustic wooden benches will be installed, and a railing will be finally positioned around the perimeter, after pine and carob trees are pruned back. All this activity will give citizens and visitors a place to picnic and relax alongside nature.

Last but not least, a campaign to remove rocks from L’Ampolla beach is underway. These rocks and stones are a nuisance for bathers, and the initiative is designed to make bathing there a more pleasant experience in the summer and the rest of the year too.

So it does seem that visitor statistics and the council’s investment in improvements to the area, make the renting of your property an excellent possibility, providing it is well marketed.

Have a comment on Whats the chance of renting your property in Moraira?

Be the first to comment!

Posted by on 10/23/2013 17:07:00