First published on May 7th, 2006
Update: July 3rd, 2007
Question from an American reader:
I have no experience where you can rent better, but I believe it is Costa Brava, because of the proximity of France: French do rent much more than they buy.
To the prices mentioned in the Spanish property catalogue, you should add 10% for taxes, notary, etc. Actually it should be slightly less than 10%, but with that figure, you are on the safe side. In the case of a mortgage, interest rates amount to about 5%. Yearly taxes on properties are very low: some one percent of the price you have paid.
There is no best season to buy as far as prices are concerned, but considering the conveniences, there is a bad one: from 15th of June until 15th of September, most of the properties for sale are rented, and thus difficult to visit.
All in all, the rentability (r.o.i.) of such an operation turns around 4%. It is not very much, but it is quite a safe investment. Additionally, if your property has been well selected, you should cash a good increment value on the long term.