14 years
Well depends how much money you have a the end of the day. Always better to own a property if you can, if not you have to rent. Also depends on what size you are looking for. Be prepared for Spanish bureaucracy.
rent or buy a property to convert into hostel?
Start a Hostel
Do people think it is better to rent a property and convert it into a hostel or to get a mortgage on a property and convert it??
Can anyone tell me about the pros and cons of the two options. I was thinking about looking for a large inner city building to rent and converting it into a hostel.
Also - does anyone know any good sites for searching for these types of properties in spain???
- Comments
14 years
Ah I forgot the second bit.
Try sites like loquo or something similar, but the best way is to go to the city directly and find places yourself.
Good luck
14 years
Check local safety regulations: fire exits, enclosed staircases or not, size & amount of staircases, fire alarm, electric system and so on...
14 years
Thanks for the response
I have about 25 k so maybe I was thinking of buying a leasehold from a pre existing hostel to save all the setting up hassle . Has anyone approached it this way and experienced problems - do you think 25k is enough?
13 years
do you think 25k is enough?
Understand the following: If you have 25k you can borrow another 75k from a bank. That will be 100k for which it will be more likely to buy a place. Then you have to pay back a monthly rate for the credit and interest from your revenue stream.
Through paying back to the bank each month you own a higher share of the property. In Germany we call it "paying into one´s own pocket".
Another example: If you rent a flat the rent goes to the landlord and is thus "lost" for you. If you buy with a credit from the bank, you also pay a monthly amount wich goes to the bank. But that money isn´t "lost" as you own more and more by each monthly capital service.
Helpful?
13 years
If you have the capital is always better to buy the house of course, maybe you pay more per month than if you rent but finally you will leave to pay.
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