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Costa Del Sol Holiday Rentals Why Owners Have Turned to Renting Their Properties
by
Lucy Wallace
Located on the coast of the Mediterranean South of Spain, lies the region of the Costa del Sol; whose name roughly translates into the English Coast of the Sun . Comprising of literally hundreds of towns and villages, the Costa del Sol is a very popular tourist destination and the number of Britons investing in property in this Spanish region has been steadily increasing each year.
That was until the global economy fell and just about everything from the monthly gas bill to stocks and shares has been badly affected since. Of course there are those with an income so high as to not feel the effects but it’s wise for consumers to button their wallets and save, save, save in the upcoming months. What this now means for the Costa del Sol is that Western property owners are stuck with the dilemma of whether they can afford to keep their holiday home on the southern coast of Spain, or whether they should sell it on and save the money for a potential economic crash.
Instead of being stuck in the middle of a very hard decision, many Spanish property owners located in the Costa del Sol have actually chosen to rent out their property, rather than selling it on or keeping it empty during the year for use in the summer. While it might mean a lot of paperwork, it actually brings in steady money to keep the family afloat in times of possible crisis. After all, if there’s a beautiful Spanish property laying empty in the centre of affluent tourist area Costa del Sol then why not take advantage of the market and rent it out?
Luckily for owners who are choosing to rent out a room or the whole property, the tourism industry remains largely unaffected by the ever menacing credit crunch. Experts claim that due to the colourful ideas that travel entrepreneurs come up with, and the growing need for people to ‘get away’ from their financial stresses, the number of people taking holidays won’t be too badly affected.
What it also means is that rather than blowing a fortune on a cruise to Barbados, many families, couples or groups of friends might settle for a fortnight in the Costa del Sol instead. It is an area not too expensive to vacation in, yet one that is just as idyllic. Take Nerja for example; this autonomous coastal town oozes Mediterranean luxury and Spanish culture. Couple that with its ideal location not far from the large city of Malaga and at the other side the Sierra Nevada mountains where tourists love to ski.
Perhaps what isn’t quite clear in the process of renting out holiday properties rather than selling them on is what the future intentions of the property owners are. The majority are looking for some financial security in steady income for the short term, and in the long term are simply hoping that the global property market will pick up. Rather than sell their favorite and most expensive asset, they’re looking to hold onto it either until they are financially comfortable and can retire to the Costa del Sol, or so that they can sell it on for a much higher price. Makes sense, right?
At the moment the market for vacation or holiday property anywhere in the world is very illiquid. That is to say, the market’s assets (the properties) cannot be sold at a price equal to the one they were bought for. This is a great problem for the property owner as the whole idea in getting onto the property market is to make a return on the initial investment (otherwise known as ROI). If this isn’t done, then a great loss has been made. Now that the economy is in such trouble due to the Credit Crunch, the property market is nose diving and owners are biding their time until the average sale price rises once again.
So what should you do if you’re a Spanish property owner, particularly in the Costa del Sol? The answer is, sit on your investment and get all you can from it; whether that’s enjoying it yourself or by renting it out to other keen travelers to gain some extra income. Every penny counts at the moment!
Author Resource:- Lucy Wallace writes for La Costa Property Solutions who are a full services real estate company specializing in property sales, long term rentals, holiday rentals and property management services. Visit http://www.lacostapropertysolutions.com for information and property listings.
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Bhuddist Chants
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