I am not sure that your figures are correct. We are buying a T2 and met with Azy Leite in May. We were led to believe that the marketing costs we pay actually equate to being the discounted rates that you see advertised on web sites. i.e. If we had been told that out T2 was going to rent for 2000 euros a week in high season but it is advertised and rented out for 1500 euros a week, the marketing cost is then 500 euros, we will then still get 60%of the 1500 euros. You do not take off the 25% marketing cost from the advertised rates that you see.
Quote:
Originally Posted by Lysos
Based on the information provided on this thread and the advertised rental rates I've been looking at the figures, and as an investment it just doesn't stack up. It appears that the advertised rates are around half of what you were 'advised' by the selling agents, and even allowing for discounting to attract customers in the first year, I don't see doubling the rents in the next year as a viable proposition.
Lesrt's look at some figures:
Purchase price - 240,000 euros
Purchase costs @ 10% - 24,000
Furniture Pack - 24,000
Total cost - 288,000 euros
To get a 5% return you will need to clear 14,400 euros per year.
Advertised rental rates for a week in August: 1,338 (ignore the fact I can rent a luxury detached villa for this amount).
Less 25% marketing costs leaves - 1,003, of which you get 60% i.e. 602 euros, less 55 euros maintenance = a grand total of 547 euros before tax,
and that is a peak season week; a little less than the promised figures of well over 2,000 !.
Best of luck to you all.
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