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Consider Alcudia and Pollenca for Your Dream Mallorca Property

There are many popular towns and villages around the island in which to buy Mallorca property. Many of them have a very individual appeal and so finding the best area to meet your exact requirements shouldn’t be too difficult – whether you want mountains, beach front or golf clubs you will find a Mallorca property perfect for you!

Alcudia is one such town which offers a little bit of everything. Situated in the north of the island, the Old Town is surrounded by the city walls which date back to the 13th century and much of this part is pedestrianised so you can enjoy a stroll around and relax in the many café’s and restaurants. From the port you can take a boat trip around parts of the island or catch a ferry to Menorca or even Barcelona.

Outside of the city you can enjoy the S’Albufera Natural Park, an important wetland; journey up into the nearby mountains, or visit ancient Roman ruins, whilst the beach at Alcudia is an impressive 6 miles long.

Although in the north of the island, Alcudia is still very accessible. The journey time from the airport is just 35 minutes which makes this a great town to buy a Mallorca property in. Golfers who like a challenge will be in their element as the golf course at Alcudia is rated ‘difficult’ and is very beautiful.

Like much of the island, Mallorca property in Alcudia doesn’t come cheap. A large penthouse apartment in the town will set you back in the region of €400,000 whilst houses are even more. In Port de Alcudia you’ll find a larger range of properties. This is a more touristy part and hence there are many more lower-end apartments available. You could buy a studio, for example, which would be perfect for holiday getaways, for less than €100,000.

Also in the north of the island, you’ll find the pretty town of Pollenca at the foot of the Serra de Tramuntana mountain chain. This is a traditional town which has an excellent market on Saturdays. If you’re looking for a more traditional Mallorca property this is a good town to consider. Just over 3 miles away is the excellent beach of Port de Pollenca. This is quieter than many of the popular beaches on the island although there are package holidays coming here, so it’s not completely empty!

Much of the older Mallorca property for sale in Pollenca is in the style of townhouses. Depending on condition and size you can expect to pay upwards of €400,000. A more modern 3 bedroom apartment will cost in excess of €250,000.

In Port de Pollenca you can get more for your money – a 2 bedroom apartment for under €200,000 for example, plus there is generally more property on the market here. There are also some very exclusive properties here too – seafront apartments, fincas and luxury villas for those with more to spend!

Buy Investment Property Without Seeing It

Why would you buy investment property without seeing it? It’s a numbers game. Whether or not you see the property before you make an offer isn’t nearly as important as making sure the numbers make sense.

A man in California used to just send out offers on a hundred MLS listings at a time, offering 25% less than the asking price on each one. Occasionally a few sellers would accept his offers. He never had to look at the homes beforehand. Including an “inspection and approval” clause in the offer meant he could always back out of the deal later when he saw the house. Meanwhile, he efficiently found the truly motivated sellers.

This true story demonstrates that with a good clause or two in the contract, you don’t have to worry about making an offer before you see a property. It’s true when you buy investment property or your next home. When it isn’t everything the seller says it is, you can reject the deal with little or no loss. So why wouldn’t you want to look at the property?

Buy Investment Property By Numbers

The main reason you might skip looking at a property before making an offer is time. This is certainly true if the property is far away. If you don’t get a price that makes sense, why spend your time traveling to look at real estate investments? A price and terms that make sense – this is what is important. Of course you’ll probably want to look at the actual property eventually, but looking at the numbers is how you invest.

Investors value income property according to current cash flow (or should if they want safe and viable investments), so start by verifying income. Get the actual income figures for the past 12 months. Always consider the potential income if rents are raised, vending machines are added, etc., but base your offer on the current income.

Verify all expenses with investment properties. If any expenses listed by the seller seem unusually low, they most likely are. Just substitute your own best guess in place of any suspicious numbers.

After you determine the net operating income, apply the appropriate capitalization rate to arrive at the value. If you’re not sure how to do this, get help. However, you really should understand the principle of how to figure a cap rate. This is a numbers game you’re playing.
Calculate loan payments (talk to your banker), and see how much cash flow you’ll have. Then you can figure your cash-on-cash return based on how much of your own money you put into the deal. Just divide the cash flow by your investment.

When the numbers work, you can safely make an offer. Inspections will tell you if there are problems that will affect the cash flow. You can always renegotiate if there are such problems (assuming you made your approval of all inspections a contingency of the offer). Of course, you can even go take a look now that you are truly ready to buy that investment property.