Where do we start???

[PicklePants]

Hi ya,

I am hoping for some advice on here as my husband and I are at odds over what to do with some inheritance he is getting.

I think that we should invest in property in the UK and rent it out. He on the other hand really, really wants to purchase a property on the Costa Blanca. We drive down there, normally twice a year and love the village/villa we stay in. This is where he would like to buy. Ideally a villa with 3 beds and a pool. The idea is to rent it out during the summer months, blanking it out for the time we want to use it (normally September and May)

What concerns me is the maintenance of the property, getting it cleaned, pool maintenace etc and the tax implications of the rental income. It worries me being in the UK not being able to ring someone to fix a problem, we also do not speak Spanish.

Our '10 year plan' has always been to move to Spain, we love the area and I can see where he is coming from. The logistics worry me.

Where on earth do we start making sure that we buy somewhere legit, getting a good lawyer if we find a property. Do we get taxed on income even if we leave it in Spain? I really have no idea!

Many thanks for your (hopeful) suggestions

 

[Veronica]

Hi, Welcome to the forum.
My advice is stick to the market you know and get something close to home which you can keep an eye on.

 

[Barny]

From what you're saying, you normally go the same village twice a year? How many years have you been doing this and as a result of being 'regular' holiday makers there, have you got to make friends / acquaintances who you recognise or see each time?

The reason I ask this is that it's a similar scenario to my in-laws prior to them buying land, building and eventually retiring to Cyprus. Because they visited the same town 2/3 times a year, they got to make friends and went back year after year and stayed in contact with these people and when they felt they knew them well enough they asked the question of if they were to build / buy a property, would these other people be able to keep an eye on it for them. They made friends with various couples through different sources who didn't know each other and therefore had a reliable circle of people to watch out for them.

But, if you aren't in that position or obviously can't make regular trips over there yourself, then as Veronica says above, you should stick to the market you know and purchase in the UK. Depending on the amount you'll have available and the UK property you were to choose, there is always the possibility of using the UK property as a stepping stone for additional income and then use this along with any additional money to go towards the Spanish 'pot'.

Besides that and with regards to purchasing laws, solicitors, etc, then I have no idea about that. That again may need you to be out there, make some contacts and see who is recommended to you and local to the area you'll be wanting to purchase. I would guess that the key to a stress free (ish!) purchase abroad would be to have everyone involved as local as possible, selling agent, solicitor, builder, architect, etc.

Good luck to you!

 

[Veronica]

Another important thing to bear in mind is that you can usually get much more rent for a property in the UK than in Spain. So as far as investment goes the UK is still by far the best bet.

 

[tonymar]

I am on the Costa Blanca, now is a great time to buy , so many bargains ans a good exchange rate

But , I think if I were you I would choose the UK , as it will be easier to control , different if you were living out here permanently and it was a second property for rentals

Whatever you decide , good luck !

Tony Alicante

 

[PicklePants]

Thank you everyone and apologies for the delay in coming back to you all. Your opinions are good to hear.

We do know people in Spain and in the village, not many I admit but we will still know people who know people if you know what I mean.

I agree that buying here in the UK is 'safer' but hubby still like the idea of Spain due to the economy, euro exchange rate, wanting to be out there in the end scenario. Looking at what we can get there would be perfect, plenty of space for rental potential and taking friends/family with us and I would be more than happy to live there permanently.

We are meeting up with our friends in the next few weeks who have just sold up in the village next door, they have only sold due to health reasons. I feel like we are on a see-saw!!!

 

[property-spain]

I agree great time to buy as prices are still quiet low and is helped with the exchange rate, I own a property in Guardamar del segura lovely area but can be very quiet in the winter months.

Its worth looking to invest in Spain but please do shop around and always try and negotiate on the property value.

I did buy a property at the peak 8 years ago however the market is getting stronger out there and you can still find reasonably priced property.

 

[tonymar]

I agree great time to buy as prices are still quiet low and is helped with the exchange rate, I own a property in Guardamar del segura lovely area but can be very quiet in the winter months.

Its worth looking to invest in Spain but please do shop around and always try and negotiate on the property value.

I did buy a property at the peak 8 years ago however the market is getting stronger out there and you can still find reasonably priced property.

Prices seem so low here at the moment , in fact I find some almost unbelievable !

I guess some people are desperate to sell , it seems like a true buyers market .

I have seen many local bargains !

Tony

 

[PicklePants]

Thank you We are going out in September for 3 weeks so we are going to have a good look around. We have been chatting to a friend who has a property in Benitachell which is not far from where we are thinking of buying and he has lots of contacts so that will be helpful.

We are not going to dive headlong in but are also mindful of the exchange rate at the moment and the low prices.

All of your help has been greatly appreciated. Many thanks

:biggrin:

 

[tonymar]

Thank you We are going out in September for 3 weeks so we are going to have a good look around. We have been chatting to a friend who has a property in Benitachell which is not far from where we are thinking of buying and he has lots of contacts so that will be helpful.

We are not going to dive headlong in but are also mindful of the exchange rate at the moment and the low prices.

All of your help has been greatly appreciated. Many thanks

:biggrin:

Thats good you have a friend in the area you want to buy in , always good to get the view and opinion of some one who has lived there for a while !

 

[JPF]

I would buy in the uk and rent in Spain, there are many pitfalls to buying in Spain.

 

[PicklePants]

Hi everyone,

After talking to several friends who live in Spain we decided to buy in the UK, it was too much of a risk for us. Even though we are going for a long term investment, god forbid if something should happen and we needed the money back we can not bank of being able to sell again. One of our friends has had an apartment up for sale for 4 years and now her house for 18 months and is having no joy at all, despite very reasonable prices.

I've also chatted to a couple of nurses who are from Spain (friends of friends) infact in the area we are looking at. They also advised that things are still very hard and with the elections coming up we decided to play safe

We complete on the little house we have bought on Wednesday.... hopefully LOL

Many thanks for all of your help and advice, hopefully we will be back in a couple of years when we plan to look at buying in Spain again :biggrin:

 

[MadameButterfly]

Hi, I'm refloating this thread as it's a very similar question to the one I have.. we are thinking of buying in the same area (Costa blanca). I'm spanish and my family is there so no problems to take care of the property. Our plan is to use it 2 weeks a year and rent it the rest of the time (we don't like going in summer, too hot!)

My question is about taxes.. the property would be under both my partner's name (he's british) and mine, and I'm not sure where we pay taxes if we rent it? Someone told me recently taxes had to be paid in Spain which is a nightmare (which is true although I know the system),but I thought being UK residents we would have to pay taxes in the UK?

Can anyone explain how this works and if it's really complicated?

Thanks

 

[nmb]

The Spanish market still seems to be suffering from an overhang of properties which were returned to the banks when customers were unable to afford their financial obligations. There has been interest in these repossessed properties but until this grey cloud hanging over the Spanish property market disappears it is difficult to see any significant rise in property values. However, if you are looking longer term, has there been a better time to buy Spanish property? Overlook the short to medium term concerns and focus on the long term.

 

[MadameButterfly]

Thanks, we are looking at very long term. There are no repossed properties for sale in the area we are looking, and the financial crush did not affect the prices that much either, but I think it's a good moment to buy.

Trying to find out about the difficulties of renting it though, as this is my main worry.

 

[nmb]

Just a thought, there must be a fairly large expat community throughout Spain. Are there any expat rental agencies operating in Spain for UK landlords?