GN golf rentals

[nickohorny]

Hi guys, jsut intrigued what all you grand natal golf owners estimate in terms of rentals? and how much do they actually think they can expect on a weekly basis? I understand at this point of time it is basically a daft question to ask as its not even finished for 2 years but i believe everybody has a vision already, I currently only am thinking on brazilians holidaying there as the main source of income, however I get concerned over how much a week in Brazil a rental can be because it is not to be compared to what we Brits pay for. I also concern over the wetter season being considerably quiet.

I am prepared to accept this, I just wonder what you all think?!!!!

I query this as you can currently get say, an all inclusive in Brazil for around £850, inc flights,

I do believe the whole project will be fabulus, and will def pick up. I am sooooo excited about it.

Also does anybody have a proper idea of how many a weeks out the year we can actually stay there ourselves?? I believe it is 6?

[deedee1]

Hi nicko,

GOOD QUESTION!!! Like you said its a bit early yet to determine rental income and what kind of rental management agreement will be drawn up for owners!

I am not expecting a significant ammount of rental income at first- but once the whole resort is completed in 5 years time then maybe we will also get a better picture as to the situation!
But yet again we will have an advantage of being the 1st phase completed in 2 1/2 years time which means potentially we would make better income during this period as there are less properties for rent on GNG before the other phases have completed!

If I make enough from rental to cover my monthly costs i.e maintenance costs, water, electric etc I will be happy with that and anything else on top of that will be an added bonus- as I will not have a mortgage on it!

Also I will look at the rental management agreement to see if I would be better off advertising and renting it out myself and spreading word of mouth with family, friends and work colleagues- or go with them as it all depends on what they can offer and what slice they will take from it as their fee???

You could have a look at some brazil rental sites and find something similar to yours to get an average of what they charge in rentals- so you can get a rough estimate!

Also like youve mentioned it depends on who your key market will be aswell- as tourists will often or can afford to pay more?? whereas the local brazilian market will not??

Regarding rainy seasons -I dont think you have to worry about that too much as I presume it is not for very long!!

I have been told that rental management will be in place nearer completion!

[Golfingworld]

How much are "Rental Licenses" going to cost in Brazil?

[deedee1]

Hi all,

GW- Your the EXPERT Why dont you enlighten us on the subject so we can carry on or should I say start a heated debate on this thread aswell....????
As I know that you are dying to tell us!!!

So you can make more blood boil just Watch out for that VENOM coming your way..????

See ya D

[Golfingworld]

Spain have had a system of rental licenses operating for many years...they haven't enforced the law until recently but now they are getting quite stringent about it. I heard recently about a lady in Valencia that has has a multa slapped on here by Hacienda for £30k or thereabouts. Do such licenses exist in Brazil, are they dormant in the law and if so will they be introduced or enforced in years to come. As someone else wisely advised me, it is about research. So yes, being in my self styled role as the "prophet of doom" has anyone thought to ask about this or has anyone bothered to tell you?
Oh another thing..where is your rental money going to be paid to because as a non resident you can't open a bank account in Brazil...are they going to pay you in reddies? Or will they hold an "off the book" account for you? How do you know that what they will allocate is correct?

UK Daily Telegraph.....
Counting the Costa
Hugh Ash
Last Updated: 12:01am BST 12/05/2007



Buy-to-let Britons are learning a painful lesson from their investment in the holiday rentals market, says Hugh Ash

Already reeling from news that their properties' values are under threat, British homeowners in Spain are facing a double whammy that could plunge thousands into huge debt.

A fresh crackdown by Spanish tourism and tax authorities over unlicensed apartments and villas that are let to holidaymakers threatens to trap countless Britons, anxious to maximise their investment in homes on the Costas and the Balearic Islands.

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The news comes two weeks after shares in major Spanish property companies slumped by up to 22 per cent - due to the oversupply of houses - and soon after the euro interest base rate's rise to 3.75 per cent, which has added to buyers' mortgage burden.

Many of the 300,000 British investors in Spain's overheated property market have already turned to the lucrative holiday rentals sector and many more are considering doing so to ease their mounting financial strain.

But, seduced by the prospect of netting £1,000 a week in high season for a two-bedroom flat with a sea view, few realise that they face swingeing fines of up to £20,000 (€30,000) because they are breaking tourism laws.

The expanding opportunities for buy-to-let investments, which generate income to repay mortgages, have acted as a hefty inducement in luring thousands of British people into snapping up properties in the Spanish sun.

However, the vast majority of flats and villas cannot be offered for holiday rental, because the tourism authorities do not license them. And, even if official permission is sought, it is rarely granted.

"There are strict conditions before properties are approved for rental to holidaymakers," says a spokesperson for the Spanish Ministry for Tourism. "Nearly all are not licensed, which means letting them to tourists is illegal."

Property owners also face action from the Spanish and British tax authorities, who have stepped up their scrutiny of holiday rental websites if they fail to declare income from lettings.

Already several British investors in Majorca, the second most popular holiday-home market after the Costa del Sol, have fallen foul of Spanish law.

Londoner Tania Osbourne is appealing against a £20,000 fine for letting out her £200,000, two-bedroom flat on a complex in a popular Majorca resort for holiday rentals, after a Spanish neighbour tipped off the tourism authorities.

Another British owner was recently fined £4,000 and ordered to withdraw his apartment from a holiday rentals website. And five others, who wanted to let their apartments to holidaymakers, have been threatened with legal action by neighbours.

Tania, 63, from St John's Wood, explains: "I wanted the flat as a buy-to-let investment and the developer's sales director told me it had excellent holiday rental potential of up to £800 a week in high season. So I bought it with a mortgage from a Spanish bank.

"After I'd completed the purchase early last year, I put the apartment on a holiday rentals website and was overwhelmed with inquiries from the UK. Very quickly it was booked solid for nine months.

"But I was suddenly called to a meeting with the head of the community residents' association. And he spelt it out in the bluntest terms that the development was unlicensed and we would be reported if we continued to offer our flats as holiday accommodation.

"We had no idea the development had to be authorised for tourism use and we were all relying on the lettings income to pay off our mortgages.

"I immediately pulled the apartment off the website and put it up for sale. But that didn't stop one vindictive neighbour from informing on me to the authorities. Now I've been hit by a £20,000 fine - far more than I ever made from the lettings - but I'm hoping to get it reduced on appeal."

Lawyer Sebastian Stalter, whose practice in Palma specialises in advising foreign clients about property purchases, warns: "The rules governing holiday rentals are particularly tough in the most popular tourism areas, like Majorca and the Costas.

"So British buyers must be extremely careful if they seek properties for buy-to-let investments, because the experience can be a painful one if they have not checked out the pitfalls in advance.

"Many developers don't give accurate information about what their properties can be used for and it's very rare that apartments are licensed for tourism."