Welcome to the Luxury property guide by Cilo Marbella. In today’s article, we share hand-on practical tips on buying an exclusive property in the Marbella area (Costa del Sol).
Choose a luxury property that is competitively priced and in a good location. Desirable locations include close to the sea, on a golf course, and anywhere within striking distance of Marbella and Puerto Banus. If you intend to spend time in the property yourself then, obviously, you need to choose a style of build and decoration that you are happy to spend time in. If you primarily intend to rent the property out then many guests these days are looking for a modern style. There can be tax advantages for purchasing a new property rather than second hand.
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While it is not a legal requirement to have a solicitor when purchasing a property in Spain, it is highly advisable, and one that we always recommend without exception. Your lawyer will check that the title to the property is good and has no outstanding debts attached to it. She/he will also advise on the best form of legal ownership depending upon your circumstances. If you intend to rent then we can advise, in consultation with your lawyer, how it might be possible to make significant tax savings on your purchase. Your lawyer will advise on securing a fiscal number and opening a Spanish bank account.
Sometimes you may be fortunate enough to purchase a property where the furniture is included and it is furniture that you are happy with. However, more often than not the property will either come unfurnished or furnished in a style that is unsuitable. We can advise on a range of different furnishing outlets, for different budgets. Should the primary purpose of the purchase be to secure good rental income then attractive, but inexpensive, furnishing is normally the best option. For rental properties provision should be made for wear and tear and to largely or completely renew furniture approximately every 5/7 years.
Managing a property can be very time consuming and not all new owners have either the time or the inclination for it. The management company is ultimately responsible for the smooth running of the property from ensuring the grass is cut, pool cleaned, local taxes and fees are paid, rental guests are happy, and any emergencies tended to promptly. For international owners, a reliable management company is absolutely essential. We can advise accordingly.
You will need the services of a reputable rental company with a track record of securing high-quality clients for luxury properties. The rental company needs to find out basic information about the proposed guests e.g. How many adults? The ages of the children? Family or group of friends? Copies of passport Identification must be secured. The guest will also need to leave a damages deposit, returnable after the property has been inspected after departure.
You will need to discuss with the rental company what your rental objectives are. For example, do you wish to rent the property at the highest price possible for the most weeks as possible? If so, then a total of 26 weeks pa should be possible assuming the property is priced correctly.
Depending on the property, this should then result in yields of 5-8% pa. However, should personal use be prioritised then this figure will drop accordingly.