Mallorca Townhouse Renovations - An Alternative Investment Opportunity

March 7, 2010 - PRLog -- Mallorca's traditional old towns are one of its most distinctive and attractive features. The townhouses within them vary from modest properties to the grand houses of wealthy local merchants and landowners. Many have already been renovated, some to exceptionally high standards, but there are still some very good opportunities to buy properties in good locations that are still in their original state.

Taking on such a property and renovating it to a high standard can be a way to obtain a highly attractive and characterful holiday home. They can be surprisingly spacious and light. If the renovation is well designed internally they can offer comfortable modern living, some with lovely patio gardens or roof terrace BBQ areas and small pools.

There are not that many old towns and these old historical properties are finite in number. Over that last ten year in particular they have become more sought-after for both personal use and as rental properties, so they have all the ingredients of being a good investment over time.

Not everyone can take on such a project and not everyone would want to. For a start, these properties are by definition located in Mallorca's old towns. For some these represent the essence of Mallorca and are a key attraction that draws them to the island. But they are not the best option for beach lovers and those looking for a lively night-life.

More practically, whoever you work with, you need to commit time to being in Mallorca while the work is done. Even the most professional builders and project managers will do some things differently to how you would want them.

Furthermore some aspects of the plans would most likely benefit from being adjusted during the build. The only way to manage this to your satisfaction is to be making regular visits to the property while work is being carried out.

You will also need to be clear on the costs and to have funding in place. The last thing you want is for funds to dry up part-way through. It will cause hassle for you with your contractors and leave you with a part-renovated property that will be difficult to sell at a level that will cover your costs.

Some tips and pointers

If you have the time and the money then the success of your project will come down to having a level head and lots of practical common sense.

* Check out the locations. Do this before you start looking at properties. The old towns themselves vary considerably in size and character, from Soller and Pollensa which are prominent towns which a mix of local culture, ex-pats and holiday makers, to much smaller agricultural communities such as Sineu. I cannot stress this point enough - do not be lead to locations you are not familiar with by attractive properties and prices. Getting a good investment that works for you personally means buying in an area you will enjoy being in for extended stays over the years. Money to one side, such project are a big personal commitment and coming to realise you made this commitment to the wrong location is a real let-down!

* Check out the properties. This sounds rather obvious, but it is surprising how many people buy properties without really knowing the scale of the task. In the first instance a good local builder is likely to be able to give you an initial impression of this. If you continue from here you should employ the services of a structural engineer or technical architect (see below) to survey the property and assess the viability of the task. If it is looking good at this stage you may choose to get plans drawn up and quote from project managers / builders. Base plans and costs at least are strongly advised as then you can be sure the total project cost is within your means. You can always tweak the plans afterward. NB. in Mallorca there is a distinction between "architect" and "technical architect". Both are professionally trained and essential to the project. The architect is the same as the architect in the UK, The technical architect is equivalent to a structural engineer.

* Make sure you can get the relevant permission. See below.

* Take time to put together the right team. There are different ways of handling this. You could project manage yourself so it is you that liases with the architect, technical architect and building contractors yourself. I would recommend this only if you a) know the island well, b) speak fluent Spanish and c) have prior experience of such projects with similar old historical buildings. Otherwise a project manager is key and this must be well researched. Some, but not all, are excellent and will save you time and money whist producing a high quality result.

* Be realistic on time scales. A project of this nature can take just a few months for a property that is well maintained, currently lived in and where the renovation is just an internal modernisation with new bathrooms, kitchen etc. and no significant structural changes. At the other end of the scale some renovations are close-to a complete ground-up rebuild where new stone walls will be built whilst keeping as much of the original features as possible. This is a more complex and time-consuming task. All aspects of the job will take longer and it is quite possible alterations will need to be made along the way (no matter how well the property is surveyed, some aspects of the rebuild will only come to light once the job is underway). In this case we are looking at a 12 to 18 month period and possibly longer from beginning to end.

To be confident in all aspects of the project my recommendation is to have key members of your team, the a base plan and costs all in place before you commit to purchase. This will mean spending some money but if managed pragmatically in logical steps you should be able to discount the property ealry on if there is something in the mix that makes in unviable.

If there is any question that the planned revisions will not get permission from the town hall it is best to process this first too. Quite often renovations are mostly internal and the permissions are a formality. More structural renovations may however need to be checked out first.

Buying a "complete project"

If you like the idea of having a newly renovated townhouse but find the above too daunting or cannot commit your time as outlined, there are some opportunities where the plans, costs and permissions have already been put together by a developer, agent or project manager. This is more akin to buying an off-plan property as you will view the design and pay the price for the finished item.

This can be a very good route but bare in mind the "developer" is likely to be selling at a higher price for a finished property. Fair enough as they have already competed the design and planning stage at their cost and if there are any unforeseen the developer should have to deal with it, not you.

To assess the likely quality of the finished item ask to see projects the developer has already completed. If there are none steer clear!

Some renovation opportunities currently on the market

Our blog version of this article has a selection of Mallorca old town properties currently on the market. YOu can view it here : http://www.mallorcapropertypartners.com/blog/2010/03/06/t...

If you are interested do contact us as many many of the renovations opportunities are not advertised online. We will also offer more detailed advice and help you to asses the right route and each property option. You can read more about our services at http://www.mallorcapropertypartners.com/.

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