Have excellent ROI in Spain, looking for something similar elsewhere

[NA N.]

Hi all,

I've achieved roughly 9% NET income after all taxes and expenses in Spain (900 eur from 100K investment).

I don't have money inflow problems and things go generally effective there but I'm unhappy with the management.

I understand that this is a skyrocket high ROI but I'm looking to sacrifice a bit to invest somewhere else.

I prefer to discuss exact numbers:

Put 100-150K to get 900-1000 pure net income per month.

Do you have any recommendations for destinations, local investors who can help buy on a bargain with negotiation, and manage the property rental afterwards?

I'd appreciate exact achievable examples like: you can put X amount of money in this area to buy this, and rent it like this, to get this income after all taxes and expenses.

Preferably in Europe or at least out of USA as I have troubles securing a visa for there (was already rejected once). Asia should be fine though.

Many thanks

[Mike Lambert]

@Maria Murphy it's your best right to be picky but I know many too picky people who don't take action and end up missing on huge gains over time because, what creates wealth (over time) isn't the ROI but the capital appreciation. If I can make a 10% ROI and borrow at 3%, I don't really care that much about whether my ROI is 10 or 15%, as our leveraged capital appreciation over time is paid for by our tenants, with some money left over.

As to the ST regulatory risk, there's a lot of misunderstanding about it. For example, there's a headline that circulated a few days ago mentioning that Spain banned 65,000 Airbnbs. These are illegal ones and it's great for people like us who are legal because it eliminates the illegitimate competition. They've trying to be doing that in so many places without success!

Or you have the ban in Barcelona, which is at a city level only. It's the same across the world. In my home city of Montreal, they just banned ST rentals outside of summer, which basically comes down to a full ban as well. That's only in our city and not reflective of the whole country. There are reasons for such bans: modest families can't find themselves an apartment so politicians act. Therefore, it could have been expected.

Where we invest in the Costa del Sol, there isn't such lodging crisis and we invest in properties that the average Spaniard can't afford anyway. Also, the area is highly dependent on tourism and the dollars of (foreign) investors so banning ST rentals wouldn't solve anything and would harm the economy, which would hit the "average" Spaniard, which the politicians are supposed to help and represent. That wouldn't go so well at the following election, would it? Moreover, ST rentals existed there way before Airbnb was created and not even the hotels ask them to be banned or overly regulated because they're doing well and don't have the capacity to host all the tourists if ST rentals were banned anyway.

Granted, there are measures taken at the national level that have an influence on STRs, like the possibility for a 60% majority of the votes within a condominium to refuse a new ST rental license. But then, again, it's a matter of buying the right kind of assets. You can buy a house instead of a condo, you can verify what kind of owners live in the community you're considering buying into or you can buy within a touristic development. So, like everywhere else, you "just" need to know what you're doing. Of course, some politicians can always make decisions that don't make sense but that's supposed to be a (small) risk you're being paid to take. And, if you don't want any risk, you invest in treasury bonds, not in real estate.