hb
Junior Member
Posts: 22
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Post by hb on Jan 29, 2008 13:55:26 GMT 1
Hi,
Am considering buying a 2-bed renovated apartment in old town Dubrovnik. Is this a good idea at the moment? Should I offer asking price or lower as some seem to think on this forum that prices are now level/dropping? Anyone any experience of renting out in Dubrovnik? Can you break even, given the price of property at the moment and consequent mortgage payments? Esate agent says it's possible to have an occupancy rate of around 30 weeks a year? They also recommend buying as a company as they say this makes it easier to receive the rent monies? Again, any advice people can give would be very much appreciated as there is so much conflicting advice around!
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Post by upthevilla on Jan 29, 2008 14:11:27 GMT 1
you should be able to rent a max 18 weeks a year thats a reality, Any more then you have done amazingly well.having a company is required if you are to rent out. NON Croatians are nor permitted to rent there property out. You also need to get the apartment catergorised for a rating.Along with a company you will aslo require an accountant .
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hb
Junior Member
Posts: 22
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Post by hb on Jan 29, 2008 15:24:49 GMT 1
So that's 18 weeks max even in Dubrovnik which they told me was now a 12 month tourist season?
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Post by Carol on Jan 29, 2008 16:15:22 GMT 1
Actually i'd have thought you'd get more than 18 weeks in Dubrovnik, but it would have to be an exceptional property and well priced to be fully let in Feb!
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Post by upthevilla on Jan 29, 2008 17:19:52 GMT 1
a few more weeks possible but certainly not 30 weeks. Dubrovnik does have more visitors than most places in Croatia which is huge advantage. In Istria most of the apartments are rented out for 16 - 20 weeks
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Post by bear42 on Feb 8, 2008 4:42:13 GMT 1
hb,
Be very careful what you are told regarding letting season,you ask 30 people you will get 30 different answers.Buyer beware!
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Post by Carol on Feb 8, 2008 11:54:35 GMT 1
We don't do letting ourselves so I have no first hand experience, but one of the biggest group of buyers are looking to buy to let, so i need to know a bit about it in order to get the sale. So I've asked all the people I know who do let, with emphasis on the ones who have made a success of it. The ones who have made a success of it all have two things in comoon - they do the marketing themselves and don't just leave it to the managing agents. Also they have attractive photos of the property to sell the rental weeks.
You will get as many different answers as you ask questions, but try looking for the overlap amongst the people who do it well and I think you'll find the same things. Renting out a house just isn't a passive business: it takes effort.
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Post by zorro on Feb 8, 2008 12:38:27 GMT 1
do you think, marketing can be surprisingly expensive, I use an agent now, its less hassle, depends on how much time you have
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Post by hansel on Feb 8, 2008 13:07:18 GMT 1
My experience in Istria with holiday apartments 15/06 to 15/09, the rest shouldn't be counted on although April, May, September and October are, in my opinion, very pleasant months for a holiday here. Holiday villas with swimming pools are supposed to have a longer season.
For an individual it is nearly impossible to lengthen the season, it needs to be done on a higher lever, tourist associations, ministry of tourism etc. with promotions which we should than follow on.
Marketing is not so expensive if you do it yourself via web sites specializing in private accommodation. But than you are left with who is going to the the rest and how much that costs assuming that you are at all allowed to let your property as a foreign owner (see one of the posts above).
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Post by zorro on Feb 8, 2008 13:18:04 GMT 1
::)so it is expensive then if you want to get more than one or two bookings
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Post by hansel on Feb 8, 2008 13:38:01 GMT 1
Not sure I understand the comment but just received a bill from one of the Internet marketing companies for £140.0 plus VAT if you have to pay one. Every second property is £90 plus VAT and I consider this web site one of the best for this purpose.
The rest depends on what you exactly need but would not expect a management company to charge less than 30% of the rental rate.
Plus add the tourist tax to this and 10% VAT if done via company and there you have all the components to do your balances on an apartment.
Dubrovnik might be better here as well as people who have been doing this for a while and have repeat customers.
I would always take a pessimistic view and if you've done better than that good, if not, at least you don't disappoint yourself.
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Post by hansel on Feb 8, 2008 13:43:56 GMT 1
And than if a Turkish ship catches fire on your doorstep just forget about all of it and relax!
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Post by zorro on Feb 8, 2008 13:45:37 GMT 1
Seems to me you could pay say £140 and get no bookings. How many properties are advertised on such a website? Yours will be one of many. All this eats into whatever annual profit you are going to make. There's little difference between advertising yourself and getting a management company to do it. Well that's my experience.
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Post by zorro on Feb 8, 2008 13:46:25 GMT 1
And than if a Turkish ship catches fire on your doorstep just forget about all of it and relax! it's OK, it's going to be fine. |
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Post by hansel on Feb 8, 2008 14:10:48 GMT 1
Thanks, yes, it seems OK, it is going to Trieste for a cut. The possibility of this happening did not occur to me so have to add it to my list of risks. Just when I thought I am having all under control !
I am again not sure about something, when you say a management company who do you exactly think of. Can you give me an example please? Is this just for marketing?
I agree with what you said, it is a battle and there are more and more of us and more and more Internet sites and you always have to watch for some new ways or reorganise your investments if possible.
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