Beware of Guaranteed Rental Schemes in Spain

April 23, 2007

Great care must be taken to ensure that the Guaranteed Rental Schemes are not simply a skillful marketing promotion.

Whilst there are genuine long term agreements offered by reputable companies, rental guarantee agreements that are for a relatively short term with unusually high yields for the area should be viewed with extreme caution.

In these circumstances it may well be that the developer has simply added the total rent for the guaranteed period to the price you are paying for the property.

Not only are you in effect paying your own rent from an increase in the purchase price this can also lead you into a false sense of security that this level of rental income will be maintained after the guaranteed period has ended.

If it cannot, this can leave a significant shortfall in your budget especially if you are relying on this income to subsidize your mortgage repayments.

For an extensive choice of property in Spain with genuine rental potential , visit the Novocasa website.