Investing, interesting options: holiday rentals or long-term.<

As a real estate agent in the Alicante region, I am often asked: "I have a budget of € 300,000 to invest. What really brings me the best return?"

The automatic answer for many is: a beautiful penthouse or apartment on the Orihuela Costa for holiday rentals. Understandable, as the idea of a sunny home by the sea generating weekly income strongly appeals to the imagination.

But if we set emotion aside and look purely at the hard numbers and risks, the truth is often quite different. Sometimes it is strategically much smarter to split that same budget and buy two smaller properties for long-term rental, for example in a charming inland village like Formentera del Segura. Let's do the math.

The Scenarios Side by Side (Budget: € 300,000)

Why are 2 properties (Long-Term) often a better choice?

If you look purely at the net return, there is hardly any difference (5.6% versus 5.5%). However, a good investment is not judged solely by the bottom-line percentage; it is judged by risk, stability, and required time investment.

• Optimal risk diversification: With a vacancy or a poor tourist season, 100% of the cash flow drops out immediately with Option 1. With two properties, 50% of your income continues if one tenant leaves.
• Continuity and predictability: Holiday rentals generate 80% of their revenue during the summer months. Long-term rentals offer a linear and guaranteed monthly income, all year round.
• Carefree management (Passive income): No weekly check-ins, intensive cleaning, or rotating guests. Tenants furnish the property themselves, pay their own utilities, and maintain the home long-term.
• Fewer legislative hurdles: Tourist licenses on the coast are becoming increasingly strictly regulated. With long-term residential rentals, you bypass these complex regulations entirely.