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Purchasing a Holiday Home?

Discussion in 'Personal' started by jago123, Oct 3, 2018.

  1. jago123

    jago123 Established commenter

    Hi all,

    I have been speaking to a friend who lives abroad in Spain and they have informed me that a property in their nearby area has gone up for sale and is suitable for a home to live in full time or even a holiday home.

    I was just wondering if anyone here owns property in Spain and what could I expect if I decided to purchase this? (Legalities etc)

    Currently, I own two properties in the U.K, one is my home residence and the second one is a rental property I purchased back in 2003 and is currently being rented out to a long term tenant. In 2028, when I’m 58, I plan to take early retirement and move abroad so this does seem like a good opportunity for me.

    The property is currently being marketed at €95,000 and as I don’t have a mortgage on any of my other properties, I plan to place a €20,000 deposit, and then get a mortgage for the remainder €75,000 and pay this off when I sell up in the future. I don’t think that selling any of my U.K. properties is viable at present as I feel that the value of these will have increased dramatically in 10 years time.

    I appreciate your thoughts..
  2. yodaami2

    yodaami2 Lead commenter

    Err Brexit? Who knows?
  3. Duke of York

    Duke of York Star commenter

    If I were you, @jago123, I'd investigate whether there are homeless people in Spain who are being deprived of a roof over their heads by opportunists who never contributed to the Spanish economy, as has been occurring in Britain, and has contributed considerably to put home ownership out of the reach of most of our kids.

    It's an appalling practice, like much of what goes on in the modern world to exploit those who are both unable to buy a home of their own and be able to decide where they'd like it to be.

    If you can do it, nobody can stop you, but will you be able to sleep at night in the knowledge that you deprived a Spanish family of a home in the community they grew up in?
  4. hs9981

    hs9981 Lead commenter

    Or a cat?
  5. Duke of York

    Duke of York Star commenter

    How would a cat be able to purchase the holiday home the OP is on about?

    Are you incapable of discussing this thread sensibly? Are you a member of an SLT?

    Why don't you come back when you've got a worthwhile contribution to make on the benefits of people owning holiday homes in addition to the homes they live in, at the expense of depriving others of having a home at all?
    monicabilongame and ilovesooty like this.
  6. hs9981

    hs9981 Lead commenter

    'Grumpy cat' is worth over $1 million.


    It bought a Villa in Portugal, after pawing at the TV screen whilst watching 'A Place in the Sun'.

    Whether i'm SLT or not is irrelevant.

    FWIW holiday homes are a good thing, if you don't just go and settle with other expats in 'popular' areas. Lots of UK money has been spent in rural European areas, where the younger generations have moved to the cities.
  7. florian gassmann

    florian gassmann Star commenter

    Check carefully for any possible changes in local laws on holiday lets. We had to sell our small apartment in Venice some years ago when the city council clamped down on foreign-owned holiday lets in order to promote the interests of big Venetian hotel owners. :eek:

    Strangely enough, our next-door neighbour here in England experienced almost exactly the same thing in Spain a couple of years ago. He's a Catalan and purchased a flat in Barcelona which he's hoped to use himself for visits and to rent out for holidays inbetween times, but the Barcelona city council followed the lead of Venice and so he was forced to turn it into a long-term let and has had to go back to staying with family or friends when he returns to Spain.

    Probably only a problem in the most popular tourist resorts, of course.
  8. stopwatch

    stopwatch Lead commenter

    I would probably never consider buying a property other than in UK. The reason being that the country concerned can change rules and laws at any time and there is very little you can do about it. Rules are likely to always favour ther own citizens before any foreign owner/investor.

    You could argue that laws in UK also change but at least, being a citizen of the UK, this would have less impact and be more secure.

    Case in point is Dubai. When they first started selling property (around 2004) the promise was that, anybody buying, would be given a lifelong residents permit. This was changed about 6 years later to an extended residents permit and now has similar but with a very expensive price tag for the permit.

    In addition, when the bubble burst around 2007, many planned projects were put on hold and then stopped altogether. In some cases, large foundations were filled in again. The result? many people who put deposits on these properties are still chasing their money over 10 years later.
  9. minnie me

    minnie me Star commenter

    Well I wish you luck whatever your decision. I could not contemplate a move abroad now though I did live in France when I was younger and loved what the country offered. Lots of folk think like you I suspect ?!
  10. smoothnewt

    smoothnewt Star commenter

    I'm no Spanish property expert, but I really don't think you can compare what goes on in the UK to Spain.

    Firstly, so much of the Spanish economy is geared up to tourism that there are purpose-built urbanisations where the British ex-pats choose to live. I am an expert in watching A Place in the Sun, and typically these would-be ex-pats choose either a place on an urbanisation or a finca in the middle of nowhere, which has typically been on the market for two years as nobody wants to live at the back end of beyond. Neither choice has any impact on a would-be Spanish buyer. On the odd occasion they show the prospective purchasers an apartment in a real Spanish town, the latter get cold feet at the prospect of having to actually live a genuine Spanish lifestyle.

    Whilst these (usually retired) expats must be a drain on the Spanish healthcare system, they spend their pensions in the local economy, which must be to the benefit of Spain.

    Also, apart from the real tourist hotspots (Costa del Sol and Barcelona), house prices appear to be a fraction of what they are here. A friend's elderly mother wanted to sell up in Spain and come home to the UK; it took her an age to sell the place and she sold at a loss in terms of what they originally paid for it. So I would reckon that the presence of ex-pats in Spain is not an issue for young Spaniards wanting a home of their own.

    As regards the OP buying over there, I'd bide my time and see what Brexit brings. Do your research, but hold fire for the time being.
  11. jago123

    jago123 Established commenter

    Thanks for all your responses. The general consensus is to wait until Brexit and see what happens then which is the most common sense approach to be honest.

    I’m not in a position where I can move over now. I don’t want to be teaching if I move over there and I am definitely not in a position where I can retire at present.
  12. emerald52

    emerald52 Star commenter

    If you can keep a house in the UK then you will probably be fine. However a local sold up and bought in Spain. Turned out the property did not have the correct permissions so it had to be demolished. They lost everything. Another news item recently showed a house in Spain with British owners that had not been properly built and was collapsing. They have no comeback. Another friend had difficulty when her parents moved to Spain. Dad died and Mum was unable to cope. Cue lots of hassle relocating her back to the UK.
  13. nizebaby

    nizebaby Star commenter

    Speaking as Trailer Trash who bought a second-hand mobile home in the french campsite I've being going to for forty years, I can recommend it as a cheaper, safer and more convivial alternative to bigger properties. We came in April, spent two months here in aug/sep and are back again for 10 days at the moment. There's very little responsibilty, we know all our neighbours (all french) we're right
    next to sea on a beautiful beach and we have a amall bedroom for guests.

    My tomatoes, herbs and flowers have been a joy all year.
  14. jubilee

    jubilee Star commenter

    Rather than getting a Euro mortgage (where fluctations in currency exchenge will alter monthly repayments), consider re-mortgaging one of your UK properties.

    We had intended buying in Spain and living part of our reirement out there. We would only have bought Spanish, not ex-pat, areas. Ex-pat estates have abig question mark over whether current values will be maintained. If they are served by small regional airports that collapse after BREXIT because of increased flight taxes/landing charges etc, the attractivenes of the area for holidaymakers will be severely dented.

    We would still like to spend several months at a time in Spain but we will rent rather than buy.
    emerald52 likes this.
  15. Dunteachin

    Dunteachin Star commenter

    Living the dream, nizebaby! Am well jell.

    My sister and her partner "bought" a new build in Hurghada, a few years ago. God knows why... Dodgy dealings, no deeds, much weeping etc etc. They don't really own it, but someone rents it off them, which pays it off. It's a mess. They've never stayed in it.

    They stupidly bought a house in Northern Cyprus around the same time. Don't ask - they got into a lot of debt with it. Anyway, they live there very happily. I'm not sure they own the land, though...

    My other sister bought a villa in Turkey, sold it to some Russians and had to flee to the airport with the cash. Or something like that. She thinks they're after her.

    I'll stick to my caravan in Cheshire.
  16. sbkrobson

    sbkrobson Star commenter

    Why are you telling us all this?
    At the time of writing, this thread sits "below" yours
    Guess you two wouldn't have much to talk about in the pub.
  17. Dunteachin

    Dunteachin Star commenter

  18. Dunteachin

    Dunteachin Star commenter

    Hang on, Jago - 2028? Don't plan too far ahead, son.
    nizebaby likes this.
  19. the hippo

    the hippo Lead commenter Community helper

    Getting a euro mortgage is a bad idea, in my opinion. Why not pay cash? It would be much simpler and less expensive. And why spend 95,000 euros on a house in Spain when you could buy something cheaper and nicer in Bulgaria for 20,000 or less? Our villa in the mountains, about 60km north of Sofia, cost 30,000 euros. That was thirteen years ago, but prices really have not gone up since we bought. If we get bored with Bulgaria, we can always get in the car and drive to Greece or Turkey.

    The Bulgarian equivalent of Council Tax for our property is 45 leva, less than twenty pounds a year. I think that property taxes in Spain might be a bit higher than that.

    Yes, I think that Duke of York is right to point out that expats can spoil things for the locals and push up house prices so much that locals cannot afford to buy. This is NOT an issue in Bulgaria, as there are so many empty properties in the Bulgarian countryside. Maybe this might be a problem in Sofia or on the coast.

    What about BREXIT? Well, lots of Brits bought properties in Bulgaria before Bulgaria joined the EU, so there is no reason why Brits should not buy after BREXIT.

    You can read about the pros (and the cons) of buying a house in Bulgaria in my blog, bulgariawithnoodles.blogspot.com If you want to find out more about buying a property in Bulgaria, please send me one of those TES Conversation things.

    peter small 3.jpg
    HelenREMfan likes this.
  20. Dunteachin

    Dunteachin Star commenter

    The Hippo works for the Bulgarian tourist board and masqerades as a teacher.

    Nobody is coming. Give up, love. ;)

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