Valencia Property Buy to Rent

Buying property in Valencia to rent

At present the "Buy to Rent" market in Spain has been given a significant push by the Spanish Government. A "Public Rental Agency" has been set up under the auspices of the Spanish Housing Ministry. In an attempt to encourage property owners to rent out their empty properties, the Public Rental Agency has introduced a "Guaranteed Rental Scheme". Under this scheme, property owners are guaranteed the Market Rental Price for their properties minus costs of around 10%.

Agents have been appointed throughout Spain to market these properties. Properties must be rented for a period of 5 years. Rents are indexed linked with payments being made by the government during the first 5 days of each month. Under the scheme the properties are insured against non payment, damage to the property and even malicious damage to the property. Once the first tenant is found, payments are guaranteed for the 5 year rental period regardless of whether the tenant remains for the 5 years. Soft loans are also available re the renovating of properties prior to renting them out.

Grants of up to €410 per month are presently available to young tenants from both the central government in Madrid and local government in Valencia which have had a significant effect on the rental market with an increasing number of young Spaniards leaving home and renting with their partners or friends

Via our Mortgage Broker, Mortgage Direct  clients can obtain mortgages of up to 95% Loan to Value (non residents) and up to 120% Loan to Value (residents) as well as the possibility of up to 30 years interest only available to both residents and non residents. Special Buy to Let mortgages are also available at up to 70% L.T.V. and up to 90% of the property value so in a case where the property valuation was a good deal higher than the purchase price a 90% mortgage could be possible.

Why not have a look at some of our recent Valencia Press Releases

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*Property Statistic's Courtesy of Spain 's Ministry of Housing.