Buy to Let in Mallorca

Buy a house in Mallorca, let it in summer and visit in spring.

Buy to let in Mallorca

Buy to Let in Mallorca - Mediterranean Island Paradise.

Mallorca is a beautiful Mediterranean island off the coast of Spain, cultured, geographically diverse and blessed with the kind of climate which allows you to live outdoors for the greater part of the year.

Buying to let in Mallorca can be a viable and often, highly lucrative option which allows you to finance your property on the island and have the run of the house when it is not rented.

There are a few simple guidelines to bear in mind when embarking on a buy to let in Mallorca.

Choose an area. Buy to let in Mallorca in the right Location.

Mallorca is small yet can vary greatly between areas, both in landscape, amenities and house prices. Properties in Palma and the southwest fetch premium rates due to proximity to the city and airport and the area has been overbuilt leaving few properties available for refurbishing. With good road connections and a new hospital in Inca, the north of the island is more attractive now as a buy to let area than ever and highly in demand as a holiday destination.

Buy to Let property rental agents tend to work in one given area and will probably try to hone your choice accordingly, so either choose an area and then find an agent in your area of choice, or pick a estate agent which a wider buy to let portfolio.

Buy to let hotspots include the north and east coast of Mallorca, while the privileged north eastern corner continues to fetch high prices but guarantees easy rental business on your property.

Buy to let in Mallorca

Seafront apartment for sale in Puerto Pollensa. Buy to let in Mallorca. (Ref: A1589).

Buy to let expenses. Establish your buy to let budget and adhere to it.

There is always going to be another house, a little bit more expensive, a little closer to the sea which will draw you in. By all means listen to your agent’s advice but be clear about how much you can afford. If you are financing the buy to let mortgage or loan, you need to calculate costs. Banks may charge commission on buy to let mortgages in Mallorca. Check the buy to let terms and conditions from the start.

When you purchase a buy to let in Mallorca, you are liable for Transfer tax. You will be required to pay a deposit, rates and Stamp Duty. Other fees include the Notary costs, who will charge you to register your new buy to let in Mallorca in the Property Register, charges for copies and his own personal fee. Agency fees also need considering. In total you are looking at an average 10%+  buy to let purchase price for added costs.

Buying to let in Mallorca. House viewings, amenities, structure and neighbours.

Before you lay any money down make sure you have the buy to let property you actually want. Viewings are often arranged in sequence, with several house visits packed into a single day and it can be hard to remember all the details. Make sure you return to your buy to let in Mallorca at least one more time and double check the amenities, whether the villa is connected to the mains, etc. Have an architect or a builder check the structure too. The things which will end up costing you most are often hidden from view.

Neighbours are possibly your best buy to let gage in terms of ascertaining the buy to let business opportunities of any given house. Speak to them. And document your viewings. Your smart phone is well equipped to take excellent photos of the buy to let in Mallorca so you can weigh up the pros and cons and review your buy to let property later, from the comfort of your home.

Annual buy to let property costs in Mallorca.

Aside from the actual costs of your buy to let property in Mallorca and all the fees, the mortgage and loans, taxes and rates, there are annual costs too.

The annual real estate tax (IBI) is paid to the town hall. Make sure the seller hands you copies of all previous paid bills, he/she is obliged to do so. If your new buy to let is an apartment or part of a community you may have to pay community charges for a community pool, gardens, maintenance, etc.

Annual Wealth Tax is based on the value of your buy to let property and Income Tax is based on income or revenue from the property, i.e.: rentals.

Buy to let House Insurance. Fire insurance is obligatory if you get a mortgage and life insurance can be used to guarantee payment of a loan.

Making your buy to let in Mallorca – A dream come true.

Buying your dream home in Mallorca and then renting it out during the peak season has made it possible for countless foreign property buyers to invest in a second home in Mallorca and have a base on the island for family holidays and weekend escapes out of season when, quite frankly, Mallorca is far more appealing. It is a viable and interesting option for many potential house buyers and seriously worth considering.  

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Buy a Property

We can provide assistance and recommend legal professionals who can advise you throughout the whole process of buying and selling a property.

Please take a look at our buyers guide to consult all the key steps of the process.

Sell a Property in Mallorca

If you want to sell your property, you are at the right place. At SolMallorca we have been working in real estate for 30 years and have gained vast experience and local know-how, establishing ourselves as one of the most important and best-known real estate agencies in the north of the island. 

 

 

Sell a propertyyin Mallorca

 

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 7 Dec
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