The best way to get to our end goal? Villa in Ibiza

[Tiffany B]

Hi everyone,

My husband and I are going back and forth on the best way to go about reaching out goal, and wondered if we could get some advice from you guys!

Our very end goal is to own a villa in Ibiza that we will rent out during the summer months to holiday makers. Looking at the types of villa we would like as our end goal, we're starting at €700k+ and obviously going into crazy monies the bigger and and grander they get.

We currently have a pot of around €80k, and we're trying to figure out the best way to go to eventually get to our goal. We believe we have a few options: 

1. Keep our current pot and keep growing it slowly with savings from our jobs to put together the large (40%) deposit needed for the villa in Ibiza

2. Use our pot to purchase one or two more rental properties in the UK, therefore increasing our monthly returns and saving for the villa - but the pot basically starts from scratch. We do currently have 1 rental property in the UK.

3. Buy property in the knowledge that we are going to re-sell in a couple of years at a profit.

 

Note, at this moment in time we are living in Dubai and are moving permanently to Ibiza when we are able to. (supposed to move at end of April but obviously everything has stopped us)

I'd love your thoughts on this everyone!

[vangelis]

Hi Tiffany, 

Interesting question... looking at what you have put down I feel a mix of 2 and 3 is going to be the best way forward of getting you to your goal quicker. One thing I can advise you on if you are not already aware of this is the purchasing costs as a rule of thumb on the Costa del Sol (is where I operate, but I don't see it being different in the Balearic region) you will need to have at least 15% of the value of the property on top of the downpayment for the mortgage. The purchasing costs can be lower but as long as you account for the max then you are covered for all eventualities.  

I hope this information helps.  

[pasatolstyj297_gmail_com]

You can try to find a villa in Costa Rica, they are growing in price fastly. Costa Rica has a growing and developing economy which makes it a great place to invest, as well the Government offers incentives and benefits for foreigners to invest in the country. I think you can find something that fits the budget. My close friend is currently investing in Luxury Costa Rica Real Estate and I am sure that this guy knows how to invest right. So I am going to buy there an apartment at the end of this year as well.