AboutLyndon Sheehan Expertise I have lived and worked in Africa, Ireland, England, Spain and now Bulgaria.I am managing director of the Easy Realty Group,we are property developers and agents. Hopefully I can answer on all things relating to this, relocation and living here,purchasing property, building, planning, solicitors, schools, pets, living costs, etc.
Experience Extensive experience, my work involves most of the above, and I live here.
Expert: Lyndon Sheehan Date: 2/15/2008 Subject: Investing In Europe
Question Hello, my husband and I would like to purchase an investment property in Europe. At this time, we are narrowing our choice down to France and Spain. We would like to rent this property out. We looked into the Leaseback schemes in both of these countries, and at first it looked like a good idea. However, the concern is the re-sale at the end of the lease period. We feel that they would be hard to sell, given the saturation in the market.
If we were to buy an independent property, what would our options be in terms of property management? We live and work in Canada, so the opportunity of flying there would be relatively infrequent.
Can you provide me any insight into this!? Thank you so much!!!
Answer Hi,
Without a crystal ball the resale value and ease of selling is difficult to say.
My concerns with the leaseback are the the charges, annual and otherwise. You really need to get this clarified by the developer, it does appear to be very vague with a lot of them and could make a big difference to the profitability. It's something that is never mentioned in the advertising.
Independent properties to let are not easy to arrange management. With a property on a complex the management is easy, Meet'n'greet, change over, cleaning etc. All much easier because the management company will be looking after numerous lettings, whereas trying to get someone to travel to an independent property for the key handover, accepting damage deposit, cleaning etc, can be really difficult.
If your letting, and visiting infrequently, stay with a complex.
If you do decide to buy don't buy on too big a complex, the ideal size is 20 to 40 units. If there are 200 or 300 units, selling can be difficult, especially if the developer is still selling on the complex or even a phase 2, he will undercut all resales.
Properties in Spain are now expensive compared to the rent you'll get, and wherever you buy the rental period is very much governed by school holidays so don't believe "The weathers good enough to rent all year" it doesn't happen. You will get better deals in some of the emerging markets, Bulgaria for example, things are really moving ahead, properties are still cheap and rental income is the same as Spain. I'll get someone to send you some info to give you an idea.
Hope this helps,
Lyndon.
Hi,
I will need your email address to get the extra info sent to, sorry, didn't realise it wasn't on the form.
