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Opinions, questions and advice about accommodation, tourism, leisure and anything you may need in Lanzarote. 
Buying an Apartment
Posted by: annmoo ()
Date: July 24, 2007 12:54AM

Hi

just wondering if anyone could give me some advice. Am considering buying a one bed in PDC which i would like to rent out for about 30 weeks of the year, can anybody tell me what the rental market is currently like and am i being over ambitious looking to have it rented for that many weeks. The complex is Las palmeras

cheers

Anne

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Re: Buying an Apartment
Posted by: biffa ()
Date: July 24, 2007 09:39AM

I have friends with a 1 bedroomed apartment in PDC and they just managed 8 weeks last year. Saying that it depends on how you market it, but i would say 30 weeks is very ambitious in the current climate.

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Re: Buying an Apartment
Posted by: Will2 ()
Date: July 24, 2007 10:01AM

Letting market is dead as a dodo - there is a massive over supply at the moment - especially at the smaller sized apartments end of the market.

OK dead as a dodo is a little over egging it - but I wouldn't be taking any risks if you are relying on the rent to pay the mortgage.

Its not a bad idea to buy - you should be able to get a good deal.

Also the market in PDC is very mature so you will not get much in the way of capital growth - Playa Blanca and the south is booming - well actually it has probably boomed already so there is no quick money to be made like there was 10 years ago.

You just need to think who realistically is going to rent a one bed place in the current environment and what you would want to do with it when you are there - as opposed to sticking the money in the bank at 6%!!!

Not many Lanza landlords will be getting better than 6% return on investment at the moment.


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Re: Buying an Apartment
Posted by: Will2 ()
Date: July 24, 2007 11:11AM

Hang on thats exactly what I said just that you used longer words!!!!

Plus with interest rates at a high any spare cash you have is best of stuck in a decent internet savings account/ISA for the short term.

Also the relative costs of having somewhere occupied for 30 weeks would be high - ie. cleaning, redocorating etc and a place will look tired after just one year.

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Re: Buying an Apartment
Posted by: sirharry ()
Date: July 24, 2007 02:03PM



As the above say...buy it only if you can afford it...any rental must be seen as a bonus. lanzarote is not happening at present, no really cheap flights etc etc.

Harry

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Re: Buying an Apartment
Posted by: Will2 ()
Date: July 24, 2007 04:00PM

Exactly longterm rental good if you can find a good tenant. But who would want a 1 bed in PDC? Seasonal work types? Not going to pay much and would you want someone living in your pride and joy holiday home for that length of time?

My parents have rented out a UK holiday home for the past 20 years and it really grieves us what people do! They nick stuff - mainly cutlery - refuse to pay for bills until you really threaten them, ring up on like new years eve when they can't work the shower that sort of stuff....

We stopped doing it this year because we don't need to and far nicer now that we can decorate and have nice stuff there that won't go walkies....

I'm planning to buy a UK holiday home in next two years. Yes will try and rent it out but am not expecting it to pay the mortgage - just a bit of beer money.

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Re: Buying an Apartment
Posted by: scotty ()
Date: July 25, 2007 03:03PM

I agree with mike and alan, long term rentals are probably the way to go at the mo, ive rented for 5years and there are a lot of people like me who will go for this option and have good relationships with the landlord.
I would imagine you are going to pay around 90,000euro for a 1bed place, and 650e a month inc bills is realistic,although i wouldnt pay that much.
Maintaining your rental home isnt too bad as long as you realise that once a year it will prob nead a paint-job.
Of course even if you charge 600e a month thats over 7000e a year so after 13yrs you have got ur money back and have something thats worth a few bob..

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Re: Buying an Apartment
Posted by: Will2 ()
Date: July 26, 2007 10:29AM

Scotty - but thats based on 100% occupancy!

What about mortgage interest, legal and other local fees - translation etc, taxes etc - massive paperwork compared to UK, plus that evil thing income tax!!!

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Re: Buying an Apartment
Posted by: scotty ()
Date: July 27, 2007 12:14PM

Yeah i know what your saying will, but although they maybe hard to find alot of people do and will stay in an apt for years as its a pain in the ass moving every 12months, i know i dont like keep moving and i come from the south east where everyone is meant to have a caravan lol.
I still think it is worthwhile doing as the property prices are not too bad at the mo
Still ive always been a risk taker, probably why i came to lanza with a wife 4kids and 1,500 euros(probably bloody stupid looking back)

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Re: Buying an Apartment
Posted by: Will2 ()
Date: July 27, 2007 02:11PM

But I thought the original point was that the person buying would like to use the apartment to?!

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Re: Buying an Apartment
Posted by: s5hez ()
Date: August 01, 2007 11:18PM

I agree Flash, had my little place 12 mths in September, done a fair bit of renovation, new kitchen, bathroom, plumbing and wiring, we had had a good few working holidays over the last 11 mths and the next one will be finishing off and new furniture and I cant wait to have proper holidays in my new 'home.

When we first bought it we thought we would rent a fair bit but have now decided it's for us and immediate family only, I don't really want to share it with just anyone, everything I have done is for my comfort when I visit and I selfishly want to keep it like this.

As far as making money goes, I don't care, i'm sure I wont loose out in the long run but if and when I sell it will be for my permenant home in Lanzarote, and if I only get my money back with no profit that's fine because I will have had several years of enjoyment by then.

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Re: Buying an Apartment
Posted by: Will2 ()
Date: August 02, 2007 11:27AM

Well at the mid range Pete there is a definite oversupply.

But what people are say - and what my parents do is it is so much nicer equipping a place to your spec, having a few personal possession plus clothes left out there - they can just take hand luggage as everything is ready waiting for them.

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