Better to Rent or Buy in Spain
 

Just want to thank everyone so far that have tried to give me good advice re medical care in Spain. Since reading these posts I can see that many are suggesting to Rent our home in UK then use funds to Rent in Spain. Are there expats out there that have done this and how it all worked out???

Re: Better to Rent or Buy in Spain
 

Although I've now bought in Spain, I chose not sell in the UK when I moved over 12 years ago and rent it out instead, and I'm glad I did. Provided your UK property can be let easily and you know a good agent then there should be few problems. You will probably have to switch to a buy-to-let mortgage instead of a residential one (if you have one) and you need to be aware of registering as an overseas landlord, you'll need to declare the rental income in the UK and Spain, and declare the property on the modulo 720, etc. But for me the extra paperwork is more than compensated for by having the additional income and a foothold in the UK, should I ever need to return. Before doing so you should check with a UK financial adviser as the property would become subject to capital gains tax (they also introduced a new tax last April) to make sure that you don't end up losing out on any tax free gains in the property's value so far.

Re: Better to Rent or Buy in Spain
 

If I were to make a permanent move to Spain, I would rent out my UK property and rent in Spain until I was absolutely sure that Spain was for me on a permanent basis.
It is likely that UK property values will rise faster than in Spain and if the reality of living in Spain is not as you expected then you may struggle to relocate back to where you came.

Re: Better to Rent or Buy in Spain
 

Most people will advise to rent, but it's always a lifestyle choice. Some people enjoy renting and others are not happy renting and want their own place. It might also be an issue for some people to rent out their home in the UK, because it is their home. I bought a home, because I like my personal space and would find it pretty hard to live in rented accommodation in Spain. Some people downsize and buy two smaller homes in Spain and the UK and others just keep their home in the UK and go to nice hotels or holiday apartments.

Re: Better to Rent or Buy in Spain
 

As someone that has never rented in there life i would be one that would rent in Spain and keep the UK house rented out , as has been said there is more paperwork but the big plus sides are that UK prices are more likely to increase and like for like rents in Spain are generally much lower

Re: Better to Rent or Buy in Spain
 

I would also not recommend to sell up in the UK and move your whole life to Spain, especially if you don't speak Spanish. Ideally, you might not even have to rent out your home in the UK and can just go to Spain when it suits. I wouldn't see the point of renting a place in Spain long term, because you still have to deal with landlords and sign contracts (deposits etc.), so always be aware. You'd then be better off going on more holidays and can at least try different areas of Spain, without the stress. When you're sick off it, at least you can go back to your own home.

Re: Better to Rent or Buy in Spain
 

I rent a one bedroom apartment here in playa del ingles for €500 a month with water and electric..works out at £340 a month..couldnt do that in the UK..If you rent you have the freedom to move to somewere else if you want too..Shop where the spainsh shop as its cheaper..Goodluck..

Re: Better to Rent or Buy in Spain
 

So Aldi & Lidl :rofl:

Re: Better to Rent or Buy in Spain
 

Hi everyone,

I have just logged on to find all these message and views about my posting. I must say I am starting feel you are all right about not selling up here yet. It's a move that we need to be totally sure of and that Spain is the life we both dream of.
We are still keen to live in Spain long term but there are quite a few obstacles to cross before that happens. Last night after posting my questions I went online to check out properties for Rent and was pleasantly surprised at the price and some were even new.
To get a good feel for the Spanish way of life we do feel that Renting for at least a few months would give us more of a chance to meet more British Expats and find out more about the pros and cons of life.
The main reason for going is to feel better with our health - being joint pain in the winter in the UK and since we came back from Spain recently we felt so much better while over there. The heat really helped our joints and aches.
If this is what Spain does for your health after 7 days then there is hope for us yet.
We are both very sociable people and make friends fairly easily so experiencing as much of different parts of Spain is so important.
Next summer we are going back to experience the intense heat and stay longer this time, rent a car and drive to small little towns and maybe find the area that we would eventually want to live.

I thanks you all for your help, oh I forgot to say we also have 2 Labradors that will be going with us so you can see we have quite a lot to think about. They won't be going over during the summer but when we eventually move they will be going with us. That will be tough enough with all the rules to follow.

Thanks you all

Re: Better to Rent or Buy in Spain
 

I should add that rental agreements in Spain generally give more powers to the tenant than in the UK. Spanish rental contracts are usually for a few years, during which I believe the landlord cannot increase the rent above the rate of inflation. This is much better than the UK's 6 month ASTs. On the other hand the UK does force deposits to be held in a separate holding account, so that does favour the tenant. Also in Spain the landlord usually pays things like community fees and council tax.

More generally, the cost of buying and selling a property is Spain means that it really is a decision you need to get right first time. My personal rule of thumb is that you should only by somewhere you can see yourself living in for at least 10 years.

Re: Better to Rent or Buy in Spain
 

That's a good point. Buying a property works out at around 14% and if you then sell you are at around 20% for both transactions.
And there is always the exchange rate risk if you wish to return to the UK.

Re: Better to Rent or Buy in Spain
 

It always comes down to finances and it's different for everyone. Some people just can't afford to buy and others can. Some people need the rental income and others don't. Some people want to rent and don't want to buy. Some people love to be in Britain during summer and spend their winter in Spain and so on. It's great if you can be mortgage free and own a place in both countries, without financial worries. If you're making a permanent move (are tax resident), then you might as well buy if you're 100% sure and can afford it, especially with dogs and keep the place in the UK:-).

Re: Better to Rent or Buy in Spain
 

Thanks Moses
We wish we could keep the house in Britain and buy in Spain, but our capital is tied up in this house and when we eventually move we would have to sell to clear outstanding mortgage to then be able to buy something in Spain with the remainder.

I think the Rental situation would work for a while though, at least in time we will have tried different places and experienced life in Spain. Health issues etc.

Finding this forum useful

thanks

Re: Better to Rent or Buy in Spain
 

In that case the rental is certainly the best option. You still never know though, because maybe your house in the UK is worth more than you think:lol: and you might be able to sell and buy 2 smaller properties. I still think that the UK is not always as bad as people make it (including myself sometimes:-) and it's a lot easier to stay in the UK and holiday abroad. I'm far from retirement anyway, but especially off season the hotels are so cheap and you don't have to bother about a thing. Ideal for retired people who still want to explore and aren't fluent in Spanish.

Re: Better to Rent or Buy in Spain
 

Bread in Supermarket €1.20...In Lidl 80c..remember i only get the oldage pension and the rent from my house..