01 Oct 2009 3:35 PM:
Reply re. the Looney:-
What sort of income is coming in for clients on ME23 please on the guaranteed and variable scheme in 1 bed appts? I am trying to work out a budget. Could you also list what we will expect to have deducted in terms of costs, taxes, management fees etc. The initial contract said 1100euro pa until 2009, what will this be changed to next year?
It depends on the purchase price of the apartment where the guarantee is concerned. Variable rentals are being marketed at 550 euros p/w, sleeping 4 people.
Management fees are being held at the same rate for 2010. Taxes are calculated depending on your title deeds and usually are a year in arrears: your lawyer is better able to answer that question.
How are rental booking doing? Is there only interest or perhaps some solid bookings from tour operators? It would be good to know the details of the tour operators so we can at least see how things are advertised.
As explained in earlier posts, we did a trial run with bonafide tourists in summer, and the feedback was very good. There is a tour operator inspection visit this weekend and we ll have more concrete information on Monday. We have also been admitted into the IAGTO tour of Granada/Almeria, and so far 15 dedicated golf tour operators are booked in with us for a game of golf so that they can experience the course themselves. We will also have a pre-tee off “elevenses” hour with them.
By Monday/Tuesday next week we should have confirmation of our affiliation to the Ski Club of Great Britain.
Is there any news on the development of the riding school and sports stadium yet or the supermarket?
The information we have is that this is all happening end of this year/beginning of next. The Club House is opening (bar/restaurant) on the 9th October.
I am considering the variable scheme and getting some of the bookings myself bysetting up a website. Can we still use the management service there if we chose this as an option. Absolutely.
Is it true that in all developments the aircon is not included? Reading through the brochure it said that aircon fitments would be in place and it seems a little odd that this has never been mentioned in any letter to me from Peninsula so please assure us that this isn't true.
If your sales documents/qualities say that the air conditioning is “pre-installed”, then that means that the ducting is fitted but the unit isnt. The aircon in Fairways is installed, which means that the unit is there.
Its actually very normal in Spain for the words “pre-iinstalled” to be used, as this is usually an option that the purchaser can take up or not. In this case, air con is paramount because of the high temperatures in Granada.
When rentals start to come in then how are the payments actioned and at what point do the tax office take their 25% and peninsula their management fees? What insurances must we take out to protect against squatters etc or damage to the furniture.
Management fees are paid in advance on an annual basis. We pay the IVA on rentals, but do not handle any other taxes for clients. That is between them and their tax regime: whether they pay here or abroad. That is something each client will have to assume themselves with the help of their tax advisors. There is a “Civil Liability” insurance which is obligatory. Your community insurance covers all common areas, and in some cases your mortgage will cover building and contents. The Civil Liability on a one bed should be around 250 euros per year, and again, paramount for rentals. On the variable rental option, payments are made on a monthly basis, whereas on the guarantee option, payments are made quarterly in arrears.
Can you confirm that the payment for the furniture package does not have to be repeated at any time as I understand that the extra expense if on the guaranteed package covers this. We have chosen the furnishings for durability as well as comfort and esthetics. We don’t expect to have to refurnish for around 5 years, and wouldn’t envisage a complete refurbishment. Renewal of bed linens and towels : calculate 2 years. This will be an eventual cost for the owners, but again, way down the road.
The answers to these questions in depth would be of great benefit to those who are doubting the integrity of the rental scheme or have any doubts as to how much they will have to find to balance their mortgagae payments each month. The rental income should be viewed as a contribution to the mortgage and running costs – we don’t deal with the mortgages and therefore don’t know what the individual repayments could be.
Hope this helps !!!
Best regards
Margaret
Thanks again for your support,
thelooney - and sometimes I think I am! (I wouldn’t worry about it) 
Community thread:
Hallo
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