eric

Please help,
im due to buy an apartment in Chipeque, los cristianos one of only 70. its a 1 bed 1st floor, there is only a ground and a 1st floor and mine over looking the sea it needs a refurb to bring it out of 1990 and into 2007 but still its ok. i will probably doing the refurb next year as funds are low.. the price is 145 euros and i would be looking for around 200 - 250 pounds rent a week.. ive looked on holiday watchdog and things dont look good. ive paid my 3000 euros deposit and my agent is sorting my lending needs out. ive looked on the main letting sites and im really worried about how little they appear to be used. my questions are is this a good investment for both growth? and rent?. also how many months a year would you expect to rent it out for? and should i pull out and look else where? like Castle Harbour that is only 200 yards up the hill?

Sunny 1

It is difficult to give 'the' perfect amswer to this. What I would say, the price sounds OK & Castle Harbour is further up the hill, so that will put the older/infirm type visitors off. If you refurb. it to the highest spec. you can afford, you can charge that bit more, plus you have sea views, what more could you need fom a holiday apartment ? If you borrow here in Spain it will be cheaper than the UK.
Just make sure you have a lawyer to check all debts & paper work, it will save you heartache & horror stories later.
You will have costs for community fees, electric, water & rates etc. but once that is paid you are up & running, repeat bokings will come, as the word spreads about how nice your apartment is, what you need to do, is make it that bit better than eveyone elses !!
Good luck

videotalker

Hi Eric

Sorry you've found out some worrying factors about your purchase. As with any property, there are pros and cons. I don't actually know the complex you are buying in, but only you can make the decision to go ahead or not. I remember just after buying one of ours 3 years back, I spoke to my next door neighbour who had stayed at the complex at a different time and she made me feel as if we'd bought a pig in a poke. 3 years on, it is a great investment, we love staying there and so do our clients.

Go with your gut feeling, do loads more research, find out how long ago the negative reports were made etc etc. There are estate agents on here who will be able to advise on your legal standpoint should you decide to cancel, but I wish you all the best with everything.

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Sunny 1

Many people don't use holiday letting sites but do it themselves by getting their own web site done ( a bit of self promotion here sorry ) they then dont have to pay a percentage of their rental income to someone else. It would then be up to you how much you promote your apartment. It comes down to you will get back what you put in.
Hope this helps.

PeterRayner

Its difficult to say with Chipique in my opinion with regard to its private letting potential.

It always appeared very popular when it was run by a tour operator/managment company albeit at the economy end of the package trade but now they have been sold has private apartments it will be difficult to predict. I would ignore the watchdog reviews they were based on the handling of the site by the then management company and wont be relevant to a private "residential" complex.

What I can say is we bought a similar 1 bed apartment just up the road over 4 years ago for about 100K (euros) and then spent about 6K on a total refurbishment.

Our first 3 years renting were very successful averaging about 32 weeks a year but this last 12 months have been a lot slower but this seems to be a general trend all round.

The 400 extra apartments on the 2 new complexes in Oasis del Sur will have had an effect. I know not every one of the 400 rents out but still it will have spread the availability out. Never the less we have still managed 20 weeks by a combination of 2 longer term "swallow" rentals and some return bookings.

I guess my answer would be if the rental income is essential to fund the purchase then Chipeque might not be a good idea. (nor would CH either in my opinion) We were lucky enough to have bought ours outright so any income was a bonus

If a comparative unfurnished 1 bed is worth 145K today then by comparison our purchase (at 100K 4 years ago) represents approx a 10% gross return per annum but dont forget that there is the agents commissions to pay and any GC taxes etc.

With regard to the letting sites dont be fooled by the apparent lack of response this may well be deliberate on the part of some owners The response to any ad will also be governed by the quality of the webiste details... good pictures which will attact inquiries and the right " text wording" or copy is a great help too.

The real picture can only be told with access to the owners section where a full hits listing is given. You need to select the letting site you will use very carefully the most expensive is not always the best.

eric

thanks for your help. the apartment is one of those places that are getting split and sold of by a big spanish company. but this is a first for me to buy in spain, i do have houses in the uk that i rent out but, this is a sure rent every 6 months and holiday renting isnt, so its a case suck it and see i guess. yes i plan on doing a site but still unsure how to advertise the site for people to look.

imablue

1st off eric,welcome aboard as they? say ,don,t know where in los c. you are thinking of but i was of the understanding once a deposit has been paid you can,t get it back (correct me if i,m mistaken) secondly 26 weeks letting and you are doing well (on average) some years better, swings and etc.you seem to be unsure now, have a re-thinkand here,s hoping things will work out for you good luck

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eric

thanks for you help your all very kind. ill cross my fingers.

Janet

Are you saying that you are paying 145,000 Euros for an UNrefurbished apartment in Chipeque? If so, you would probably be better with a fully refurbished one ready for immediate rental at 150,000 Euros.

I don't want to be a wet blanket, but you would be pushing it on this complex, or any similar complex of its age, to get 250 Pounds per week holiday rental, and that's before you take into account number of weeks. I'll leave it to other more experienced renting owners to indicate on that, but I think you are paying a lot for what you are getting, and you are overestimating the potential weekly rental income for the apartment ... in my opinion.

eric

thanks for you reply. there is property listed on the main sites for 200-250 pounds, and i even spoke to a guy who has refurbed hi aprt and gets 275. i take it you know the complx? how many weeks do you think it will rent for?