Those looking for a holiday home in Mallorca know that it is an emotional matter. The Porta Holiday yield calculator for holiday renting makes this important investment decision more tangible and shows what can be earned from the rental.
By Stefanie Claudia Müller
Beate Schneider has long been looking for her new holiday domicile in Mallorca and she knew:
”The property should be situated on the sea, preferably near to the beach and with sea views”.
The doctor and mother of three children from Hamburg wanted her house to be in the south-west of the island, although she knew that she would have to pay a lot as the prices in Mallorca in many areas have reached record levels.
A house in Mallorca has its price and the Porta Holiday yield calculator makes it simple to work out how much income can be achieved from holiday rental.
”It was, however, clear to me that when I am not on the island the house could be rented out for a good price”, says the 51-year old: ”That means that I can also earn money from it”.
The highest rent amounts can always be achieved for properties with sea views.
”Sea views allow us to dream and are linked to relaxation and holidays – that is what people are looking for in a holiday home in Mallorca”
says Joachim Semrau, the founder of Porta Mallorquina Real Estate. But sometimes, what we feel is not what corresponds to reality- the Porta Holiday yield calculator will show the truth in just a minute.
Rationalise a decision of the heart
With Ms. Schneider it was love at first sight. She has known Mallorca for years and has studied the whole island from Palma to Alcudia, always staying in a different apartment or finca:
”Until I decided that my second home will be here!”.
She calculated everything and discussed it all with the family. She compared objects, spoke to friends and checked, with the help of the Porta Holiday yield calculator for holiday renting, what kind of return an investment in the south-western region could generate.
”The good thing is that the yield calculator makes it simple – only key data is required”
she says. For example, the purchase price and the ancillary purchase costsof 9% are automatically calculated and the cost of the whole investmentis the result.
When a house is sold the touristic renting licence is transferred to the new owner like, for example, with this finca on sale in Campos for 600.000 euros.
After that all she had to do was to answer a few questions about the equipment and location of the property. The system then differentiates between the different kinds of sea views, with the highest rating being for panoramic views. The calculator, using its own databank, then compares how high the income from holiday real estate is in comparable properties and locations on the market currently. It determines a balance between owner-use and renting per year and compares the total revenue per year with the amount of the total investment. It differentiates between high and low seasons and then calculates which weeks remain for owner-use.
”It really is very practical, but it would also be useful to know in how many years the initial investment is paid off, but I was able to calculate that for myself using the data supplied”, says Ms. Schneider.
In the end she changed her decision on what to buy on the basis of Porta Mallorquina’s calculation.
A house in Mallorca is still a good investment
At the moment real estate investment returns in Mallorcaare between 1 and 7 percent depending on location and property. It is not, however, possible to rent houses to tourists everywhere on the island as the Balearic government has, in its new tourism laws, laid down strong restrictions for the tourist centres on the coast. Only property owners who have the appropriate renting licence can go into the touristic rental business.
BILD (caption id= When a house is sold the touristic renting licence is transferred to the new owner like, for example, with this finca on sale in Campos for 600.000 euros. (/caption)
Currently particularly popular is the whole area surrounding Palma where sales prices have increased by 50 percent over the last three years, according to a study carried out by Porta Mallorquina.
Rent prices in specific areas have doubled over the last five years. The reason: more and more foreigners are looking for an apartment or buy complete town houses, and an increasing number of companies are seeking accommodation for their personnel.
Whilst looking for a suitable property for touristic rentingMs. Schneider was able to call upon her past experience:
”Having spent many years in holiday homes we know what a guest is looking for”.
The choice finally fell upon a house in the south-east of the island for 600.000 euros. According to the yield calculator the return here is over 4.7%.
”Where, today, could I get a return of almost 5 percent, and own a property with a tangible value where I can even spend my holidays?”,
says Ms.Schneider happily, and as the house already has a valid rental licence tiresome visits to the authorities are not necessary. She is very glad that she took advantage of the yield calculator:
“After all, it’s always better when the investment also makes sense. It takes only a minute and is free. “
You can try out the Porta Holiday yield calculator here. In the Porta Mallorquina real estate offers there are many properties that are suitable for holiday letting or already have a valid license. The individual exposés are linked to the yield calculator, so that the key data is automatically transferred into the calculation.