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Erasmus Students Offer Excellent Rental Possibilities for Buy to Let Property Owners in Valencia.

Added: (Thu Mar 01 2007)

Erasmus students are not a sector that would normally come to mind if one were to discuss favoured tenant profiles amongst buy to let property owners yet in Valencia due to several unique local factors they offer a quite attractive profile for the serious buy to let property investor.

Erasmus students who come to Valencia are very much on their own when it comes to sourcing suitable rental accommodation due to there being no accommodation office at the various third level institutions here. This situation is undoubtedly a shock to the system for students from abroad who are used to being looked after by accommodation officers at their places of study.

These students come to Valencia looking for accommodation to rent for a 10 month period from September to June. They invariably arrive in August, booking into a hotel or hostel and under pressure timewise to find suitable accommodation. Apart from the language barrier, the fact that most Spaniards are on holidays for the month of August and don't want to deal with accommodation enquiries they have for rental until they return from holidays in September doesn't help the situation. Another problem that Erasmus students encounter is the Spanish Practice of estate agents charging a month's rental to both the property owner and the tenants for handling the rental of a property. We at Valencia Property Hound don't charge tenants a fee for renting property through us nor do we charge property owners for renting property that they buy through us.

Buy to rent for student market

Erasmus students are willing to pay up to €450 each per month for quality apartments in prime areas. By renting for 10 months of the year to Erasmus students and short rentals during the peak Summer months of July and August gross yields of 5% are achievable. Here is a link to Kyero where we have a lovely apartment presently being rented by Erasmus students for €900 a month and which will be renting for €750 a week during the Summer.It should yield around 6% this year:

Erasmus students are using the loquo website re property search (www.loquo.com). For property investors looking for good buy to let properties in prime areas I personally prefer the area around Mestalla where Valencia Football Club have their stadium. Apart from being one of the cities best areas it is close to the city's universities and polytechnic, has its own metro station as well as having the city's attractions such as the beach, America's Cup Marina, City of the Sciences, the city centre as well as the football stadium closeby. The "Mestalla" football stadium will be demolished in 2009/10 with a mixture of offices, commercial units and apartments being built in its place. The stadium is being moved to the outskirts of the city wuth the club expecting to pocket €300 million at todays prices.

At present in the Mestalla area one bed apartments off the plans are selling for in the region of €360,000 with large 4 bed apartments at over €600K.Quality second-hand 2/3 apartments can be bought for around €240K. By renting to Erasmus students and short term Summer rentals yields of around 5% are achievable.Once the football stadium has been demolished and the marketing campaigns for the apartments to replace it are in place all second-hand properties in the area will get a good push pricewise. Here is a link to idealista where you can see a quality second-hand presently for sale privately for €234,000:

http://www.idealista.com/

Also on the idealista website each area's average price per sqm can be seen.At present the average price per sqm for second-hand property in Valencia on Idealista is €3,072 with the area around Mestalla coming in at €3,642.The most expensive area of the city is around the city's principal shopping street which is called Colon St. where average prices per sqm are coming in at €5,249.Prices around the city's historic centre El Carmen are at €4,193 per sqm.

All in all Valencia still offers excellent opportunities for the discerning property buyer once he or she knows where to buy making the argument for using an established property search company such as Valencia Property Hound all the more compelling. We offer an "all in fee" which includes sourcing a suitable property, conveyancing, tax advice as well as looking after the payment of each clients first year's tax payments and the translation of both contracts of sale.

Article by Dermot Quinn, Valencia Property Hound Ltd