Any info on property????
#16
Re: Any info on property????
This should give you a few areas to focus on.
#17
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Posts: 13
Re: Any info on property????
Best wishes
#18
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Posts: 483
Re: Any info on property????
These are my views based on a similar experience.
We wanted to live in Spain for about 12 to 14 weeks a year ( 4 or 5 separate visits ranging from 4 days to 3 weeks on each occasion.)
We visited a number of places on the Costa del Sol (we wanted a complete climate change and like it hot!)
We worked out that renting our rental costs were averaging about £3,000 a year for those 12 to 14 weeks. In addition flights were about £800 a year and car hire about £1,000 a year. Total costs, before food, drink and entertainment of, say, £5,000.
After looking around for a year we decided on Frigiliana.
We bought a two bed apartment for about £80,000, in 2003, just where we wanted - a 5 minute walk to all the bars and restaurants, 10 minute drive to the beach, 50 minute drive from Malaga airport.
We rent the apartment out when we are not there and average about £5,500 a year in rents.
BUT, here's the shocker; Spain does not allow any costs to be deducted against tax (this is unlike UK which allows virtually everything to be deducted from rent before the balance is taxable).
So we pay 25% (actually i think its now 24%) of gross rent to the Spanish tax man, leaving us about £4,100. The running costs (laundry, cleaning, utilities, advertising, rates, community charges etc) are about £1,500 a year.
So after tax and expenses we are left with £2,600 a year. That's enough to pay all our airfares and car hire (as above: £1,800 a year) plus most of our grocery bills when we're over there.
In short, to maintain the Spanish lifestyle we like would be costing us £5,000 if we were still renting. That £80,000 would have to be generating an after tax return interest rate of over 6% to deliver that. Had we not bought, that £80,000 would be generating about £2,400 a year in interest now.
So, is it a brilliant business? No.
Does it suit us? Yes.
Do your sums and think carefully.
We wanted to live in Spain for about 12 to 14 weeks a year ( 4 or 5 separate visits ranging from 4 days to 3 weeks on each occasion.)
We visited a number of places on the Costa del Sol (we wanted a complete climate change and like it hot!)
We worked out that renting our rental costs were averaging about £3,000 a year for those 12 to 14 weeks. In addition flights were about £800 a year and car hire about £1,000 a year. Total costs, before food, drink and entertainment of, say, £5,000.
After looking around for a year we decided on Frigiliana.
We bought a two bed apartment for about £80,000, in 2003, just where we wanted - a 5 minute walk to all the bars and restaurants, 10 minute drive to the beach, 50 minute drive from Malaga airport.
We rent the apartment out when we are not there and average about £5,500 a year in rents.
BUT, here's the shocker; Spain does not allow any costs to be deducted against tax (this is unlike UK which allows virtually everything to be deducted from rent before the balance is taxable).
So we pay 25% (actually i think its now 24%) of gross rent to the Spanish tax man, leaving us about £4,100. The running costs (laundry, cleaning, utilities, advertising, rates, community charges etc) are about £1,500 a year.
So after tax and expenses we are left with £2,600 a year. That's enough to pay all our airfares and car hire (as above: £1,800 a year) plus most of our grocery bills when we're over there.
In short, to maintain the Spanish lifestyle we like would be costing us £5,000 if we were still renting. That £80,000 would have to be generating an after tax return interest rate of over 6% to deliver that. Had we not bought, that £80,000 would be generating about £2,400 a year in interest now.
So, is it a brilliant business? No.
Does it suit us? Yes.
Do your sums and think carefully.
#19
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Thread Starter
Joined: Apr 2005
Location: Suffolk........Heading for Queensland
Posts: 712
Re: Any info on property????
These are my views based on a similar experience.
We wanted to live in Spain for about 12 to 14 weeks a year ( 4 or 5 separate visits ranging from 4 days to 3 weeks on each occasion.)
We visited a number of places on the Costa del Sol (we wanted a complete climate change and like it hot!)
We worked out that renting our rental costs were averaging about £3,000 a year for those 12 to 14 weeks. In addition flights were about £800 a year and car hire about £1,000 a year. Total costs, before food, drink and entertainment of, say, £5,000.
After looking around for a year we decided on Frigiliana.
We bought a two bed apartment for about £80,000, in 2003, just where we wanted - a 5 minute walk to all the bars and restaurants, 10 minute drive to the beach, 50 minute drive from Malaga airport.
We rent the apartment out when we are not there and average about £5,500 a year in rents.
BUT, here's the shocker; Spain does not allow any costs to be deducted against tax (this is unlike UK which allows virtually everything to be deducted from rent before the balance is taxable).
So we pay 25% (actually i think its now 24%) of gross rent to the Spanish tax man, leaving us about £4,100. The running costs (laundry, cleaning, utilities, advertising, rates, community charges etc) are about £1,500 a year.
So after tax and expenses we are left with £2,600 a year. That's enough to pay all our airfares and car hire (as above: £1,800 a year) plus most of our grocery bills when we're over there.
In short, to maintain the Spanish lifestyle we like would be costing us £5,000 if we were still renting. That £80,000 would have to be generating an after tax return interest rate of over 6% to deliver that. Had we not bought, that £80,000 would be generating about £2,400 a year in interest now.
So, is it a brilliant business? No.
Does it suit us? Yes.
Do your sums and think carefully.
We wanted to live in Spain for about 12 to 14 weeks a year ( 4 or 5 separate visits ranging from 4 days to 3 weeks on each occasion.)
We visited a number of places on the Costa del Sol (we wanted a complete climate change and like it hot!)
We worked out that renting our rental costs were averaging about £3,000 a year for those 12 to 14 weeks. In addition flights were about £800 a year and car hire about £1,000 a year. Total costs, before food, drink and entertainment of, say, £5,000.
After looking around for a year we decided on Frigiliana.
We bought a two bed apartment for about £80,000, in 2003, just where we wanted - a 5 minute walk to all the bars and restaurants, 10 minute drive to the beach, 50 minute drive from Malaga airport.
We rent the apartment out when we are not there and average about £5,500 a year in rents.
BUT, here's the shocker; Spain does not allow any costs to be deducted against tax (this is unlike UK which allows virtually everything to be deducted from rent before the balance is taxable).
So we pay 25% (actually i think its now 24%) of gross rent to the Spanish tax man, leaving us about £4,100. The running costs (laundry, cleaning, utilities, advertising, rates, community charges etc) are about £1,500 a year.
So after tax and expenses we are left with £2,600 a year. That's enough to pay all our airfares and car hire (as above: £1,800 a year) plus most of our grocery bills when we're over there.
In short, to maintain the Spanish lifestyle we like would be costing us £5,000 if we were still renting. That £80,000 would have to be generating an after tax return interest rate of over 6% to deliver that. Had we not bought, that £80,000 would be generating about £2,400 a year in interest now.
So, is it a brilliant business? No.
Does it suit us? Yes.
Do your sums and think carefully.
We are not really looking to buy a property for a 'business' venture, but purely for our own use. If we can rent it out and get some income from it, then all well and good, but it's not imperitive.
As i mentioned in my previos post, this is a huge decision for us because we would be selling our main UK home to fund it, thus leaving us then to rent a property in the Uk as a base to live in while kids were at school during term time and we run business back in UK.
We are constantly thinking of ways to have the 'best of both worlds'!!!!!!.... if only it were that easy!!!!
#20
Re: Any info on property????
Thanks for that info, its really useful to see how it works for other people.
We are not really looking to buy a property for a 'business' venture, but purely for our own use. If we can rent it out and get some income from it, then all well and good, but it's not imperitive.
As i mentioned in my previos post, this is a huge decision for us because we would be selling our main UK home to fund it, thus leaving us then to rent a property in the Uk as a base to live in while kids were at school during term time and we run business back in UK.
We are constantly thinking of ways to have the 'best of both worlds'!!!!!!.... if only it were that easy!!!!
We are not really looking to buy a property for a 'business' venture, but purely for our own use. If we can rent it out and get some income from it, then all well and good, but it's not imperitive.
As i mentioned in my previos post, this is a huge decision for us because we would be selling our main UK home to fund it, thus leaving us then to rent a property in the Uk as a base to live in while kids were at school during term time and we run business back in UK.
We are constantly thinking of ways to have the 'best of both worlds'!!!!!!.... if only it were that easy!!!!
You're suggesting that you want to own a place in Spain and rent for a while in the UK, most of the responders are suggesting you do it the other way around for a while - continue to own in the UK and rent somehwere in Spain - why would this not be an option?
So many people have bought in the wrong area or have found they couldn't get employment and so on, only to find they then can't sell either. Renting for 12 months is a very sound idea.
So many people have bought in the wrong area or have found they couldn't get employment and so on, only to find they then can't sell either. Renting for 12 months is a very sound idea.
#21
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Joined: Apr 2005
Location: Suffolk........Heading for Queensland
Posts: 712
Re: Any info on property????
We are paying a mortgage on our UK property,, we couldnt afford to pay rent on a place in spain too!!!......however we were hoping to buy a place more or less outright once we'd sold our UK house with the equity therefore we could afford to rent in the UK!!!! hope this makes more sense???
#22
Re: Any info on property????
This wouldnt be an option because we couldnt afford to!!!
We are paying a mortgage on our UK property,, we couldnt afford to pay rent on a place in spain too!!!......however we were hoping to buy a place more or less outright once we'd sold our UK house with the equity therefore we could afford to rent in the UK!!!! hope this makes more sense???
We are paying a mortgage on our UK property,, we couldnt afford to pay rent on a place in spain too!!!......however we were hoping to buy a place more or less outright once we'd sold our UK house with the equity therefore we could afford to rent in the UK!!!! hope this makes more sense???
Just be careful you don't lose a lot more money buying in the wrong place in Spain.
You might want to look at some of the Spanish returnees in the MBTTUK forum. You also want to search the Spanish forum for black money and consider the issues associated with it.
Good luck
#23
Joined: Dec 2006
Posts: 5,359
Re: Any info on property????
These are my views based on a similar experience.
We wanted to live in Spain for about 12 to 14 weeks a year ( 4 or 5 separate visits ranging from 4 days to 3 weeks on each occasion.)
We visited a number of places on the Costa del Sol (we wanted a complete climate change and like it hot!)
We worked out that renting our rental costs were averaging about £3,000 a year for those 12 to 14 weeks. In addition flights were about £800 a year and car hire about £1,000 a year. Total costs, before food, drink and entertainment of, say, £5,000.
After looking around for a year we decided on Frigiliana.
We bought a two bed apartment for about £80,000, in 2003, just where we wanted - a 5 minute walk to all the bars and restaurants, 10 minute drive to the beach, 50 minute drive from Malaga airport.
We rent the apartment out when we are not there and average about £5,500 a year in rents.
BUT, here's the shocker; Spain does not allow any costs to be deducted against tax (this is unlike UK which allows virtually everything to be deducted from rent before the balance is taxable).
So we pay 25% (actually i think its now 24%) of gross rent to the Spanish tax man, leaving us about £4,100. The running costs (laundry, cleaning, utilities, advertising, rates, community charges etc) are about £1,500 a year.
So after tax and expenses we are left with £2,600 a year. That's enough to pay all our airfares and car hire (as above: £1,800 a year) plus most of our grocery bills when we're over there.
In short, to maintain the Spanish lifestyle we like would be costing us £5,000 if we were still renting. That £80,000 would have to be generating an after tax return interest rate of over 6% to deliver that. Had we not bought, that £80,000 would be generating about £2,400 a year in interest now.
So, is it a brilliant business? No.
Does it suit us? Yes.
Do your sums and think carefully.
We wanted to live in Spain for about 12 to 14 weeks a year ( 4 or 5 separate visits ranging from 4 days to 3 weeks on each occasion.)
We visited a number of places on the Costa del Sol (we wanted a complete climate change and like it hot!)
We worked out that renting our rental costs were averaging about £3,000 a year for those 12 to 14 weeks. In addition flights were about £800 a year and car hire about £1,000 a year. Total costs, before food, drink and entertainment of, say, £5,000.
After looking around for a year we decided on Frigiliana.
We bought a two bed apartment for about £80,000, in 2003, just where we wanted - a 5 minute walk to all the bars and restaurants, 10 minute drive to the beach, 50 minute drive from Malaga airport.
We rent the apartment out when we are not there and average about £5,500 a year in rents.
BUT, here's the shocker; Spain does not allow any costs to be deducted against tax (this is unlike UK which allows virtually everything to be deducted from rent before the balance is taxable).
So we pay 25% (actually i think its now 24%) of gross rent to the Spanish tax man, leaving us about £4,100. The running costs (laundry, cleaning, utilities, advertising, rates, community charges etc) are about £1,500 a year.
So after tax and expenses we are left with £2,600 a year. That's enough to pay all our airfares and car hire (as above: £1,800 a year) plus most of our grocery bills when we're over there.
In short, to maintain the Spanish lifestyle we like would be costing us £5,000 if we were still renting. That £80,000 would have to be generating an after tax return interest rate of over 6% to deliver that. Had we not bought, that £80,000 would be generating about £2,400 a year in interest now.
So, is it a brilliant business? No.
Does it suit us? Yes.
Do your sums and think carefully.
Hi good post and welcome to BE hope to hear more from you.
#24
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Thread Starter
Joined: Apr 2005
Location: Suffolk........Heading for Queensland
Posts: 712
Re: Any info on property????
It does.
Just be careful you don't lose a lot more money buying in the wrong place in Spain.
You might want to look at some of the Spanish returnees in the MBTTUK forum. You also want to search the Spanish forum for black money and consider the issues associated with it.
Good luck
Just be careful you don't lose a lot more money buying in the wrong place in Spain.
You might want to look at some of the Spanish returnees in the MBTTUK forum. You also want to search the Spanish forum for black money and consider the issues associated with it.
Good luck
surely both countries have their problems, I certainly havent got rose tinted specs on and wouldnt expect it all to be a bed of roses, but at the end of the day, all we're looking to do is buy a holiday home an try to spend as much time as we can there and soak up the mch needed sun that the UK is lacking !!!!
#25
Re: Any info on property????
I maybe really naiive here, but is Spain 'really' that bad????......as bad as the Uk at the moment????
surely both countries have their problems, I certainly havent got rose tinted specs on and wouldnt expect it all to be a bed of roses, but at the end of the day, all we're looking to do is buy a holiday home an try to spend as much time as we can there and soak up the mch needed sun that the UK is lacking !!!!
surely both countries have their problems, I certainly havent got rose tinted specs on and wouldnt expect it all to be a bed of roses, but at the end of the day, all we're looking to do is buy a holiday home an try to spend as much time as we can there and soak up the mch needed sun that the UK is lacking !!!!
#26
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Joined: Apr 2005
Location: Suffolk........Heading for Queensland
Posts: 712
#28
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Joined: Apr 2005
Location: Suffolk........Heading for Queensland
Posts: 712
Re: Any info on property????
Oh blimey!!!.....my idea of 'sunny Spain' all year round has just gone out the window!!!! lol.... I have an uncle who has a house in Valencia. He goes there regularly and always gives the impression that the weather is better than the Uk!!!!
#29
Joined: Dec 2006
Posts: 5,359
Re: Any info on property????
now and PJ's
#30
Just Joined
Joined: Feb 2009
Posts: 9
Re: Any info on property????
I left the UK 7 years ago and Ive never regretted it. I worked in Madrid first, went off around the world, worked in Kuala Lumpur and now I work in Geneva. I live on the Lake, but I have also bought a house in Andalucia near Ronda. If you want Real Spain think about inland. Most places, including the cities and coast, you will have to learn some Spanish to get buy. It took me five years to find an area that suits me (I dont like Valencia province at all), and another 18 months to find the right house. It is big, 300 years old, perfectly habitable, and I am going to do various things to it over the next 3 years. It is next to a huge Church, a 12 century castle, in an old Pueblo Blanco, in a World Heritage Zone. All for the price of half of a pokey terraced scrap heap in some slummy town in the UK. Do your homework, be positive, learn some language and wander around the southern half of Spain for a few years until you find what you want. Renting in a lovely town like Antequera or Ronda would be around 500 euros a month for a big family apartment. It would give you a base to look around from and allow you to immerse yourself in the local culture.