Buy-to-let has made a true revival on the Spanish South coast. Investors increasingly see property as an attractive investment at a time of low-interest rates and a booming amount of new developments in the region.
The property market bouncing back has encouraged more investors to snap up property in Estepona. One of the main reasons is the fact that Estepona occupies the second position on the new property ladder in Andalusia. With an increase of 64% (800 properties) compared to 2016, the traditional Spanish fisher town is now experiencing the largest growth in history.
Estepona Port New Property
Once every while, we find a new development that ticks all the ‘buy to let’ boxes. In this case, it is a large new development called Puerto Blanco. Let’s walk you through this new development, located near the port of Estepona. In order to cover the ground, we have created 5 important focus points that are applicable to buy to let.
1. A promising area to invest in property
Starting with the area. This is one of the most important factors to determine the buy to let success rate. In this case, we are examing the so-called Las mesas area in Estepona. The magnificent climate of the area translates into a relaxed standard of living where the Mediterranean is always present. In addition to the sea, in the area considered as the new ‘Golden Mile’ of the Costa del Sol, other protagonists also stand out: nature makes its appearance in the Sierra Bermeja, a green landscape that completes the landscape of the area. The area is integrated into the life of Estepona and in a few minutes you can walk along the promenade and the marina. Access to the airports of Malaga and Gibraltar is also very easy – 60 and 45 minutes by car, respectively – thanks to the excellent communication of the plot with the main highways of the area -A7 and AP7-. In 20 minutes you will reach Marbella and Sotogrande. The road connection to Puerto Banús and Sotogrande, two of the most exclusive marinas in the Mediterranean, is also splendid.
2. Do the maths on your buy-to-let
Buy-to-let lenders typically want rent to cover 125% of the mortgage repayments. To make life just a little bit easier, we have already done the calculation for you. Please visit our buy to let page to learn more. We have taken a conservative approach to this, so in reality, the number could be much higher as both short-term and long-term property is high demand nowadays in Estepona.
3. Think about your target tenant
Instead of imagining whether you would like to live in your investment property, put yourself in the shoes of your target tenant. In this case, people that are looking for a comfortable holiday apartment. Who are they and what do they want? Beach, restaurants, parking, close to all amenities and all this in walking boxes. Consider all the boxes checked for this investment. Puerto Blanco is located in the Las Mesas area, which is close to town, walking distance to the port and connected to all roads and highways (easy day trips). Moreover, the located offers sea views, beautiful green zones, a dog park, gym all inside a 200m radius. The finishing touch is the underground parking and the large community swimming pool.
CLICK THE IMAGE TO DISCOVER THIS BEST PRICE PENTHOUSE | PUERTO BLANCO ESTEPONA
4. Favourable Payment terms
The payments terms of this new residential project are very favorable, to say the least. We have made a calculation here below, based on an available three bedroom apartment.
Apartment X listing price €186.000
1. Deposit €3.000 to reserve the property
2. Second payment 10% €18.600 plus 10% VAT (MINUS 3.000 deposit) within 45 days
3. Third Payment 10% €18.600 plus 10% VAT paid in installments until June 2019
4. Final payment 80%. Mortgage or bank transfer upon delivery/completion
Regarding additional costs:
+12% of €186.000EU for registration, notary, and IVA (VAT).
5. Consider how hands-on you want to be
Buying a property is only the first step. Will you rent it out yourself or get an agent to do so. Agents will charge you a management fee but will deal with any problems and have a good network of plumbers, electricians, and other workers if things go wrong. You can make more money by renting the property out yourself but be prepared to give up weekends and evenings on viewings, advertising, and repairs. Many independent agents offer an excellent and personal service.