Sunday, April 27, 2008

Buy-to-Let investors should look to the future

Investors in buy-to-let accommodation, irrespective of the recent dip has got encouraging news recently as Homes worldwide reports have said according to a study by VillasforTravel, owners of tourist accommodation in Spain have collected the highest rental returns in Europe in 2007.

Sun has reported that overseas property purchasers need to have a vision about the happenings in their chosen location in the next few years. The supply and demand ratio in a certain place could decide the all-purpose success of any investment. For instance, rental property nearby a place with a large number of available residences is less likely to appreciate in value. But a house in a limited supply area would have high capital appreciation provided other important factors are satisfied.

Recent enquiries in holidayrentals.com website suggest that Short Term Holiday lets in Spain have high returns potential with well-chosen properties in good locations than your investment than long term letting. Most experts predict that an occupancy level of around 15 weeks per year is enough to provide ample income to cover the payments on a typical 20 year 70% mortgage and maintenance costs.

But BuyAssociation recommended that short-term investors come up with an exit strategy if they desired to make riches from their rental property. Remember, short-term letting needs more work than long term. The most gainful approach is market your property yourself and usage of an excellent Short-Term Agent for property management.

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