SECTION 4 BUYING YOUR PROPERTY
Purchase & ongoing costs Purchase price €399,000 (£335,294)
Typical mortgage option Capital and interest repayment mortgage of 70 per cent LTV (€279,300), with an interest rate of 3.75 per cent and a 25-year term.
One-off purchase costs Deposit (30 per cent of €399,000) Lender’s arrangement fee
(1 per cent of loan) Transfer tax (7 per cent) Notary fees Land registry Gestoria fees
Independent legal fees
(1 per cent of purchase price) Miscellaneous/travel
TOTAL ONE-OFF PURCHASE COSTS Ongoing costs
(not taking into account any rental income) Monthly mortgage payment Annual municipal tax
Annual property insurance
TOTAL ANNUAL OUTGOINGS TOTAL MONTHLY OUTGOING
€1,450.77 (£1,219) €400 (£336) €400 (£336) £15,300 £1,275
Remember to also factor in the cost of utilities, which will vary according to usage
Rental income This villa has a lot going for it and is likely to generate strong rental income to offset the monthly mortgage payments. Weekly rate high season Weekly rate mid season Weekly rate low season
£1,250 £850 £600
PROJECTED ANNUAL REVENUE Based on 6 weeks rental in each season
£16,200
The real deal Budget to have £134,000 in the bank to take ownership of this property with a 70 per cent LTV mortgage. This would make the property’s annual running costs around £16,000 which matches the rental income. Remember you will have to pay to have your property managed and your earnings may be subject to tax..
€119,700 (£100,588) €2,793 (£2,347)
€27,930 (£23,471) €1,995 (£1,676) €1,197 (£1,006) €500 (£420)
€3,990 (£3,353)
€1,000 (£840) £133,701
AIPP CONSUMER GUIDE 43
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