The Pollensa property market is booming and so is the rentals market. Sol Mallorca real estate data shows that property sales in the Pollensa area for this year 2016 have increased from last year and show a huge rise from the dire climate of the previous few years, when the market slumped completely. Predictions for this coming year are optimistic.
With demand outstripping supply, buying property in Pollensa is certainly a lucrative investment but, how to make money from your property in Pollensa and what are your options?
At a glance, you can make money from property in Pollensa, many are doing so already. A quick browse of the real estate windows in town will show you a myriad of luxury homes and fabulous properties for sale in Pollensa, marketed at prices ranging from 150 thousand euros to anything up to 20 million euros!
You will agree that this is quite a spectrum. And you will now see why it isn't about whether or not you can make money from property in Pollensa, but more a question of HOW to make money from property in Pollensa!
Like most big investments, buying to let property in Pollensa and how to make money from it requires considerable thought. You will need to give the matter time to minimise the risk and capitalise on all the possible profits.
As I said before, the rentals market in Pollensa is thriving. As holidaymakers discover the joys of letting a private home above the impersonal alternative of a hotel stay, the amount of visitors opting for holiday homes has grown and though there is a wealth of properties in Pollensa to let, there is always going to be high demand. This is especially so if you design your property in Pollensa to fit the needs of a more and more sophisticated kind of tourist.
For more on the ins and outs of buying property to let in Pollensa, how to go about it, what people look for in a rental home and where in the Pollensa area gets the best rates, follow the link above.
When you buy a property in Pollensa you are faced with a choice between homes which have already been refurbished and are priced accordingly, and properties, often shells, which are in need of work. Sometimes you will have to replace or rebuild entire sections of the house, put in a new roof, raise it, etc. It's a big job. And it is made even bigger by the fact you do not ordinarily (or yet?) live on the island. But when you look seriously at how to make money from property in Pollensa, you are right to at least consider this option. Your chances of turning a relatively small investment into a luxury home worth hundreds of thousands (or much more) is increased hugely.
For more on the ins and outs of refurbishing property in Pollensa and in Mallorca in general, you can read this article on the subject.
Possibly the single most important part of making money from property in Pollensa will be choosing the property itself. It may seem obvious, and it is, but you'd be surprised by how many people trip at this first stage and end up with property that they either cannot afford, can't maintain or which cannot make them any money.
It's useful to know exactly what you want from your investment, what your market is; ie: what kind of tenants/tourists will suit your home, and where (where in Pollensa) and what type of property to buy.
An investment can be anything from a short term investment or long term investment. Do you want to buy a house, restore it, rent it and quickly sell it on, or are you looking to keep your home for retirement perhaps and let it in the meantime so it can pay for itself?
Sometimes asking the right questions is the key.
It is worth noting at this point that your rental yield will have several months of gaps when the property is not let, whether because you are staying in it or because properties do not let as much in the winter season.
There is such a thing as a buy to let mortgage and though rates and conditions will vary between providers, as a rule of thumb, your rental income should cover at least 125% of the repayments. You will also be required to put down 25% as a deposit and borrow no more than 70% of the property's total value.
For a more indepth look at financing your property in Pollensa and how to go about it, check out an earlier article on Property loans and mortgages in Mallorca.
Any ideas or suggestions on the subject will be greatly appreciated.
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.
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.