Example budget to buy an apartment, renovate and sell for profit in Marbella March 8, 2023

Investing in property can be a great way to build wealth, and renovating an apartment in Marbella can be a profitable investment if done correctly. In this article, we will explore the perfect price level to buy an apartment in Marbella and provide a 10 point budget proposal for renovating it, as well as provide information on relevant taxes and mortgage costs.

What is the perfect price point to Buy an Apartment in Marbella?

The perfect price level to buy an apartment in Marbella will depend on several factors, including the location, size, and condition of the property. However, as a general rule, investors should aim to purchase an apartment for around €100,000 to €250,000, as this price range typically offers good value for money while still leaving room for renovation costs.

Budget example for Renovating an Apartment in Marbella

When renovating an apartment in Marbella, it is important to focus on modernizing the property while keeping costs under control. Here is a 10 point budget proposal for renovating an apartment in Marbella:

Painting – €3,000
Flooring – €5,000
Kitchen – €10,000
Bathroom – €5,000
Electrical and Plumbing – €7,000
Lighting – €2,000
Windows – €5,000
Air Conditioning – €3,000
Furniture – €5,000
Miscellaneous – €5,000
Total Budget: €50,000

It is important to note that these costs are estimates and may vary depending on the specifics of the apartment and the quality of the materials used. It is also advisable to work with a professional contractor who can provide guidance on the renovation process and help keep costs under control.

Taxes and Mortgage Costs

When buying and selling property in Marbella, investors should be aware of the relevant taxes and mortgage costs. The purchase tax in Marbella is 8% of the purchase price for properties up to €400,000 and 9% for properties above this threshold. The sale tax in Marbella is 19% of the profit made from selling the property.

Mortgage costs will vary depending on the specific mortgage product and lender, but investors can expect to pay between 1% and 2% of the loan amount in fees and closing costs.

Attractive Apartment Parameters for Expats

When looking for an apartment to renovate in Marbella, it is important to consider the most sought-after parameters for expats. These parameters include:

Location – A central location with easy access to amenities, transportation, and entertainment options.
Size – A spacious apartment with plenty of natural light and open living areas.
Views – A property with panoramic views of the sea, mountains, or cityscape.
Outdoor Space – A property with a balcony, terrace, or garden for enjoying the Mediterranean climate.
Amenities – A property with high-end amenities, such as a swimming pool, gym, or concierge service.
Security – A property in a secure building or complex with 24-hour security and surveillance.
Renovation Potential – A property that offers potential for renovation and modernization to increase its value.
Quality of Build – A property with high-quality construction and finishes that will stand the test of time.
Price – A property that offers good value for money and is within the investor’s budget.
Rental Potential – A property with high rental potential, either as a short-term vacation rental or a long-term rental for expats.

How can I find the right apartment to buy, renovate and sell for a profit?

Nueva Andalucia as an area that ticks most of these boxes. The location is sought after both for residential full time expats but also for tourists who are looking to spend quality time on the Costa del Sol with the highest of expectations. There are some really great apartments with views either over the mountains or sea, or both. It’s very close to the outdoor living and most apartment complexes offer swimming pools, even some which area heated during the winter. The price point is relatively high but if you know what you are looking for, there are still deals to be made here. Check out all the apartments for sale in Nueva Andalucia in the propertly list here.

Property Expert

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