With the “Porta Holiday return calculator” investors can calculate what income can be obtained with a holiday house.
Unsettled by the fluctuating capital market and threatening interest penalties the Germans currently prefer to invest their money in real estate. Due to the increasing overheating of the domestic real estate markets, more and more investors are going abroad, preferably to Mallorca, the favorite island of the Germans. The new buyer group buys not only for their own vacation, but purchases a property in Mallorca quite specifically as a capital investment.
How much income can be earned from vacation rental? In collaboration with Porta Holiday, the Freiburg Centre for Real Estate Studies developed the “Porta Holiday return calculator”, a new service tool that makes it possible for investors to relate potential income from holiday rentals to purchase price and ongoing operating costs.
As a database some 900 holiday homes on Mallorca were selected, which were then classified according to regions and features. The result is average weekly rates per region which vary according to location, amenities and season. Those who do not want to miss luxury during the summer holiday in the southwest of the island will need the deepest pockets at around € 7,000 per week, and the best value luxury holiday homes are in the south where the average weekly price is around € 3,300.
The return calculator also shows the running costs with which owners have to reckon, such as house and pool cleaning, gardeners, advertising costs etc. The yield calculations show that it is often worth investing in the most desirable locations, beautiful views and luxurious facilities. Despite higher purchase prices attractive returns can be generated with such objects.
Peter Haller, chief editor of the real estate magazine Bellevue and operator of the Mallorca blog Elephant 10, has been familiar with the holiday property market on Mallorca for more than 30 years and has tested the yield calculator. His judgment:
“A well thought-out and valuable tool, highly recommended for those who are thinking of using their Mallorca property as a capital investment.”
The yield calculator is available online directly at Porta Holiday, as well as on the website of Porta Mallorquina.
