# renting out a house or appartment



## taximania (Sep 17, 2010)

sorry ...hopefully last question !
i hope to buy a villa and then maybe two smallish appartments on urbs ...the intention would be to rent the appartments out to bring in an income , i would probably buy on villamartin or quesada ...do i really need a licence to allow me to rent them out or is it not required?
many thanks for your time and advice


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## xabiaxica (Jun 23, 2009)

taximania said:


> sorry ...hopefully last question !
> i hope to buy a villa and then maybe two smallish appartments on urbs ...the intention would be to rent the appartments out to bring in an income , i would probably buy on villamartin or quesada ...do i really need a licence to allow me to rent them out or is it not required?
> many thanks for your time and advice


yes the law says that you need a licence, although it is more stringently applied in some areas than others



just as an aside - if you will be relying on rental income to pay any mortgage - DON'T DO IT - at least at the moment


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## taximania (Sep 17, 2010)

xabiachica said:


> yes the law says that you need a licence, although it is more stringently applied in some areas than others
> 
> 
> 
> just as an aside - if you will be relying on rental income to pay any mortgage - DON'T DO IT - at least at the moment



thanks , sale of uk house would enable cash purchase of one 4 bed and 2 two beds with the idea being live in the 4 bed and rent out the other 2 in the hope of earning just enough to live on from the summer rentals ...i have been watching over the summer and there is def still a market for holiday lets and my aspirarations are not too high aslong as we can eat !


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## xicoalc (Apr 20, 2010)

taximania said:


> thanks , sale of uk house would enable cash purchase of one 4 bed and 2 two beds with the idea being live in the 4 bed and rent out the other 2 in the hope of earning just enough to live on from the summer rentals ...i have been watching over the summer and there is def still a market for holiday lets and my aspirarations are not too high aslong as we can eat !


There is a holiday market, of course... but there are also thousands, possibly millions of properies laying empty. 

If Thomson, 1st choice and people like James Villas cannot fill their quota of apartments, villas, and hotels then nobody can!

You will no doubt get some bookings but plan it carefully... and certainly dont expect more then 1 week in every 4 to sell! If you can live on this then go for it, otherwise think twice.

PS, property will continue to drop in value, so dont rush. The situation went from bad to worse, but i dont think its anywhere near recovering yet.


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## taximania (Sep 17, 2010)

thanks


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## djfwells (Sep 28, 2009)

My Mrs owns and lets out 11 properties here on the Costa Blanca. Over the last 2 years her business has switched from 90% British 10% other to 90% other and 10% British. You are more likely to get rentals at a reasonable rate by making sure that your advertising covers a spread of languages than by relying just on the British market.
She is an official Spanish registered business but just 3 of her properties are registered and approved by the Communitat Valencia. The hoops to jump through to get this approval are quite strict but it does seem to be generating business.


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## taximania (Sep 17, 2010)

thanks for that reply , i am assuming at least a 20% additional discount wether i buy via an agent or a bank ....as far as i can see the bank websites have the same prices as the agents but i expect it gives them a little more leeway if you contact them direct.
Having said that , if the spanish banks follow the lead from lloyds/hbos in the uk then once they have an offer they may be inclined to just get rid at any cost .... its that logic that leads me to suspect this may be a decent time to buy anyway if i can get a yeild of around 10%.


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## djfwells (Sep 28, 2009)

taximania said:


> thanks for that reply , i am assuming at least a 20% additional discount wether i buy via an agent or a bank ....as far as i can see the bank websites have the same prices as the agents but i expect it gives them a little more leeway if you contact them direct.
> Having said that , if the spanish banks follow the lead from lloyds/hbos in the uk then once they have an offer they may be inclined to just get rid at any cost .... its that logic that leads me to suspect this may be a decent time to buy anyway if i can get a yeild of around 10%.


Every indication is that average property prices will continue to fall for a further 2 years and by between 20-30%, and distressed property sales are expected to triple, so I wouldn't be in too much of a rush to buy anything. That said there are still some very attractive deals around at the moment and as a cash buyer you will be in a very strong position. You could do a lot worse than pick an area that you like and go and speak directly with the manager of one of the local banks to see if he has anything in his portfolio of distressed / repossessed properties.


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