Property News | Buying a Property in Javea as a Rental Investment

Holiday Rentals

Buying a property as a rental investment is a sure thing in one of the most popular tourists spots on the east coast of Spain. There is a huge demand for accommodation throughout the year in Javea on a short-term basis.

Even with the increase in interest rates, a property here provides a much higher return than a bank savings account. A well located, holiday rental investment property can provide a pre-tax return of up to 10% when managed correctly.

The best returns can often be found with apartments in Javea. Throughout the year tourists from overseas as well as locals wish to sample the delights of the town. The understandable summer rentals see apartments completely booked out. In the winter there is a demand for weekend stays and apartments are often the choice of travellers.

Summer brings families and groups to villas with pools and premium rates are charged for weekly or fortnightly stays. Large villas are in demand that can sleep several families and villas with 6 more bedrooms are usually booked well in advance, sometimes over a year in advance.

During the winter the Costa Blanca area is renowned for cycling and cycling groups often book into the larger villas, giving a winter as well as summer return. Although, large villas are more difficult to rent in the winter, a shrewd marketing plan with attractive rates can still bring in short term lets.

Short term rentals bring in big sums, but you must figure in the costs of marketing, changeovers, cleaning, linen, and repairs. To make the most of the income many property owners manage this themselves, but if you prefer not to be hands on you must employ a management company and this will decrease the profits.

 

Long Term Rental

There is a massive shortage of long-term rental properties in Javea and the rental prices have reached an all-time high. This is pricing local workers out of the market. The demand for rental properties often comes from foreigners who want to test the area, before they buy or retirees that may have sold a larger property or want to retire to the sun without committing their savings or other investments.

Tenants that come in the form of overseas professionals or retirees are more than likely great tenants who look after a property and pay their rent. Often paying several months in advance to secure a property in Javea.

Due to the rise in long term rent prices, there is a case that renting on a permanent basis without the additional costs that are involved in short term rentals could provide a lucrative and stable income. Getting a good reliable tenant is so important, but with one, it can be a stress-free income on your investment property.

If you are thinking about buying a rental investment property or maybe renting your current property on a long-term basis, please get in touch and we will offer you our knowledge in the property and rental market here in Javea. Giving you sound advice on the best the options for you.