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Reading the English papers and talking to guests it is obvious that the whole world and his wife would like to live abroad or more to the point would like a little sunshine in their lives and with the Baby-Boomers now retiring there are even more of you
I moved to Sunny Spain some thirty years ago, and it was the best move I ever made, at that time there were a couple of estate Agents in Fuengirola who were professional and helpful even though their commissions were around 15% of the sale price. These days there are more Estate Agents than English owned bars and God knows there are millions of the latter with none of them breaking even. The Estate Agents were double glazing sellers, and the like, until they suddenly became expert in Spanish property advising the gullible on how to make a fortune from property rental, they say they charge 5% but double or treble that is the norm as you NEVER get to meet the seller so never know what they are getting
They are not crooks and some are even quite professional it’s just that so many buyers leave their brains at home when buying abroad, you would not buy at home without meeting the sellers so why do it abroad???????
If you think you can make money from buying abroad then you are sadly wrong. Five or ten years ago, with much lower prices, there was a few bob to be made but with the huge price increases, and rents stuck in the past, those days are over. Buying to rent is not what it used to be, either in Spain or Britain. But property owning can be a good investment if you buy wisely. At home that means buying just walking distance from your own home and doing the cleaning and maintenance yourselves. This is usually student accommodation or bed-sits
But then, as I said at the start, a lot of you want the good life in the sun so buying in UK is not an option
If you need an income then sell up and put all your assets into at least two properties, not so expensive as you can still get superbly situated places, with stunning views, for £150,000 each. You live in one and rent the other to very happy holidaymakers doing all the maintenance yourselves. You are not going to get rich but for retired folks with a pension pot to invest and a family home to sell it’s a very practical option but it’s not for young folks with a mortgage
Of course if you have the money to spare, and I don’t mean borrowing it, as that really is expensive, then buying a holiday home in the sun is as good as it ever was just don’t expect too much from rentals when you are not using it. Another really good option is for friends or family to get together and share a place which generally is very successful and cost effective
If you speak to an ex double glazing flogger (sorry Estate Agent) he will tell you what I have just said is nonsense and if you buy off plan in the middle of the back of beyond you cannot but fail to make a fortune…………………….and as for rental income it’s like taking sweets off kids and you’ll be rich in no time
Oh! If only that were true.......................
There are cheap properties on the market that owners cannot sell and cannot afford the mortgages but if they are not selling it’s because no one wants them. If you are not fussy where you live, don’t want a sea view, and don’t mind a drive to the nearest shop then go for it but do buy privately direct from the owner. If you need a valuation that’s easy enough and if you look around properly and use a bit of common sense valuing a property is easy
Living in the Sun on the Costa del Sol is just marvellous; everyday is a joy with wonderful weather and just everything you could want from life, just make sure you are financially sound before you jump ship. As for medical care it’s second to none with the doctor on hand the day you need him and all paid for by the UK National Health for pensioners. Retired folks should spend a winter here in the sunshine to make sure it really is for them and also to look around to see what is on offer property wise and also to weigh up whether renting is not a better option than buying
So what is the cost of buying that dream?????
Added to the purchase is 10% or 11% of the value of the property in taxes and conveyancing, the valuation is set in stone so regardless of the price paid the amount is calculated on that valuation figure, and yes this tax has to be paid, there is no way of avoiding it. Community fees for a two bedroom two bathroom property is around £1,200 to £1,500 a year and local taxes another £150/200 or so. The good news is that all Spanish properties are registered and it is that entry on the Land Registry that is the proof that there are no outstanding debts or fines on the property. This search is undertaken by the Conveyancing Agent and confirmed in front of a Notary Public. The agent deals with the transfer of name for Electric/Telephone Etc. and all the fees are included in the 10% or 11% with the taxman taking 7% and the remaining covering the conveyancing.
If you buy new you get a lovely property but not necessarily that well situated as all the good land was built on years ago, you also have the expense of furnishing the place which can add anything for £5,000 £10,000 but of course you do end up with just what you want and to your tastes. Buy second hand and you get a fully furnished property right down to the knives and forks and ready to walk into and more importantly right in front of the briny with stunning views. You can then spend the rest of your retirement refurnishing the property to you own tastes or rent it to supplement that pension
Clear as mud I know which is why you leave it to whoever is doing the transfer, in my case www.andersen-ruiz.com who have looked after me for thirty years and are as sound a pound
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