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2009....All doom and gloom??
Its seems like catch 22 to me,
We face an uncertain future or the threat of reduced incomes so we decide to reduce our spending.
We do not suffer too much as we cut back on the non essentials in life and reduce the amount spent on leisure.
Then those who rely on our discretionary spending find their jobs at risk and also spend less.
Then subject to how we earn our incomes we too find our jobs at risk.
As companies go bust and shops close there is less competition so prices go up.
So we have less to spend and those who rely on our spending etc etc.
I think that this is what the economists call deflation.
We face an uncertain future or the threat of reduced incomes so we decide to reduce our spending.
We do not suffer too much as we cut back on the non essentials in life and reduce the amount spent on leisure.
Then those who rely on our discretionary spending find their jobs at risk and also spend less.
Then subject to how we earn our incomes we too find our jobs at risk.
As companies go bust and shops close there is less competition so prices go up.
So we have less to spend and those who rely on our spending etc etc.
I think that this is what the economists call deflation.
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Michael Crane
- CVO Oracle
- Posts: 11216
- Joined: Tue Feb 18, 2003 5:51 pm
- Location: Lincoln
- Contact:
One way to increase lets is winter lets. How many villa owners let over the winter? I don't want to be there in the summer, sharing the restaurants, bars, beaches, and roads with thousands of others, I want a nice quiet, peaceful time - hence, I go over for Christmas and New Year.
Winter lets will always be fewer than summer lets due to the fact that many families with children want to spend Christmas at home, but there are a few, like me, that have grown-up children and aren't bothered.
Winter lets will always be fewer than summer lets due to the fact that many families with children want to spend Christmas at home, but there are a few, like me, that have grown-up children and aren't bothered.
[quote="joanne"].
We have a place over there and when we bought we made sure we had enough saved to pay a lot up front, small Morg, we didnt rush into it and had very good advice "Do not buy if you are dependant on renting as you can never be sure of rental income"
quote]
If you don't rent how do you manage the property? I'm interested!, I predict if I don't let, and I visit for 5 or six weeks of the year, that my management charges, maintenance, pool, garden, rates, water, electricity, alarm, will come to approx 10, or 12,000 euro's for the year, if, of course, nothing serious happens, that's reducing electricity and water in proportion to habitation, obviously you can't be in that scenario, so what do you do,? You can't pay those expenses and not get something back.
I could have 12 weeks in the Tivoli for less than I'm paying management/maintenance, and no worries about the Euro or local legislation
We have a place over there and when we bought we made sure we had enough saved to pay a lot up front, small Morg, we didnt rush into it and had very good advice "Do not buy if you are dependant on renting as you can never be sure of rental income"
quote]
If you don't rent how do you manage the property? I'm interested!, I predict if I don't let, and I visit for 5 or six weeks of the year, that my management charges, maintenance, pool, garden, rates, water, electricity, alarm, will come to approx 10, or 12,000 euro's for the year, if, of course, nothing serious happens, that's reducing electricity and water in proportion to habitation, obviously you can't be in that scenario, so what do you do,? You can't pay those expenses and not get something back.
I could have 12 weeks in the Tivoli for less than I'm paying management/maintenance, and no worries about the Euro or local legislation
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Michael Crane
- CVO Oracle
- Posts: 11216
- Joined: Tue Feb 18, 2003 5:51 pm
- Location: Lincoln
- Contact:
I earn less than you spend on your holiday home's maintenance! -
shanagarry
- CVO Legend
- Posts: 2048
- Joined: Tue Jul 27, 2004 7:26 pm
- Location: Craigweil-on-Sea
Widge,
This is better than work!
As we live close to Gatwick (40 mins) - we take extra long weekends on a regular basis. Some of our friends and family do so as well.
When we first bought in Carvoeiro (not the current property) we advertised in The Sunday Times and some Villa rental publications (that's where the dross cames from) and enjoyed 7 very good years of rental income.
The current property was bought with retirement in mind but we always knew it would need some work on modernisation and enlargement - that's what we are going through now. For those in the know - it is a Jorge de Lagos built property in Vale do Milho from 1982 and while we love it to bits - it needs some 2009 treatment to make it habitable all year round.
Thank you for your kind words - I don't imagine we will see the finished article until June time - at the very earliest. In the meantime we will be spending Christmas and New year there in front of the best wood burner on the 'planet' and looking forward to it.
This is better than work!
As we live close to Gatwick (40 mins) - we take extra long weekends on a regular basis. Some of our friends and family do so as well.
When we first bought in Carvoeiro (not the current property) we advertised in The Sunday Times and some Villa rental publications (that's where the dross cames from) and enjoyed 7 very good years of rental income.
The current property was bought with retirement in mind but we always knew it would need some work on modernisation and enlargement - that's what we are going through now. For those in the know - it is a Jorge de Lagos built property in Vale do Milho from 1982 and while we love it to bits - it needs some 2009 treatment to make it habitable all year round.
Thank you for your kind words - I don't imagine we will see the finished article until June time - at the very earliest. In the meantime we will be spending Christmas and New year there in front of the best wood burner on the 'planet' and looking forward to it.
Sorry no reply, not been in work got a cold....
Pato, we use our place every School Holiday, pay Pool man, but as we do not rent no need for a cleaner, local laundry does sheets etc so no need for a maid.
We spend less now on expenses than we used to paying for 5 of us to go on Holiday 2 or 3 times a year.
I know a very nice English lady who lives in the Village who looks after my Friends Apartment I will give you her no on Boxing Day, she only charges for what she does not a weekly or monthly rate.
Pato, we use our place every School Holiday, pay Pool man, but as we do not rent no need for a cleaner, local laundry does sheets etc so no need for a maid.
We spend less now on expenses than we used to paying for 5 of us to go on Holiday 2 or 3 times a year.
I know a very nice English lady who lives in the Village who looks after my Friends Apartment I will give you her no on Boxing Day, she only charges for what she does not a weekly or monthly rate.
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completecarvoeiro
- CVO Senior
- Posts: 191
- Joined: Tue Dec 16, 2008 11:10 am
- Location: carvoeiro/london/le touquet
I have rented property for over 30 years and believe me,the nicer the place the better it is respected whether it be a holiday let in the sunshine or long term let in London.
I have seen many of the holiday rentals here in Carvoeiro and surrounding areas and some of the furniture is from the Ark howcan people expect to get repeat bookings with furniture like that?With rentals in whatever capacity you must always think long term never short.
Also nice little touches go a real long way,consider each individual client its really rather simple.
I have seen many of the holiday rentals here in Carvoeiro and surrounding areas and some of the furniture is from the Ark howcan people expect to get repeat bookings with furniture like that?With rentals in whatever capacity you must always think long term never short.
Also nice little touches go a real long way,consider each individual client its really rather simple.
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SharkHunter
- CVO Regular
- Posts: 11
- Joined: Sat Dec 01, 2007 9:42 am
Thanks everyone for their contributions.
It seems to me that although 2009 will be tough there is always hope. For owners it will be a tough year, whether the rental income is a fundamental requirement or a luxury cutting in half for 2009 will be painful. Cost cutting measures can be taken and improved marketing will help. The strongest will survive as in any other business.
For guests who do have the money to visit, they will be able to pick and choose the place they want to stay and get a great deal on something that normally would be booked out.
It is going to be tough but hey, speaking as an owner we all knew that going in to this. There would be ups and downs, times of fat and times of famine. It's a time of tightening the belt and not resting on your laurels.
Have a great Chrismas everyone and best of luck for 2009
Paul
It seems to me that although 2009 will be tough there is always hope. For owners it will be a tough year, whether the rental income is a fundamental requirement or a luxury cutting in half for 2009 will be painful. Cost cutting measures can be taken and improved marketing will help. The strongest will survive as in any other business.
For guests who do have the money to visit, they will be able to pick and choose the place they want to stay and get a great deal on something that normally would be booked out.
It is going to be tough but hey, speaking as an owner we all knew that going in to this. There would be ups and downs, times of fat and times of famine. It's a time of tightening the belt and not resting on your laurels.
Have a great Chrismas everyone and best of luck for 2009
Paul