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To buy or NOT to buy??

To buy or NOT to buy??

Old Jan 4th 2015, 7:34 pm
  #61  
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Default Re: To buy or NOT to buy??

Originally Posted by Moses2013
The problem is that people always bring London up and think it's the only place in the world. We're in the Spain forum and most people want to buy in Spain and not in London. Even London will see a decline at some point and it's up to every individual what they want in life. If we keep building and building all these people will need food, so maybe someone who bought land in Spain to grow fruit has a good investment.
It makes me laugh when we have people talking as if they were experts on this forum saying that everyone should buy in London because it is a great investment

As I mentioned before, a 1 bed flat is close to £400k in central London. You think that is a good thing? And if you buy that 1 bed flat now for £400k then where are you expecting the return on your investment. OK you could rent it out for maybe £1700 but that is only a 5% annual return not including costs, taxes etc. Are you expecting more capital growth, seriously?

As for lifestyle, I have 2 very young children here in the North of Spain and it is absolutely fantastic. There is a great sense of community. People talk to each other in the street, neighbours talk to each other, everyone in the shops knows you and your kids. That is real quality of life. Who gives a sh*t how much a house is "worth"?

I can't think of a better place to bring my kids up
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Old Jan 4th 2015, 7:59 pm
  #62  
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Default Re: To buy or NOT to buy??

I do not think it is the only place in the world. I am from London so for me it is a good place for an investment. I do not know any other place in which to invest and even if I did I would not invest, it is easy for me to get over to the UK from Spain, but Spain is not somewhere where I would invest in property.
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Old Jan 4th 2015, 8:07 pm
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Default Re: To buy or NOT to buy??

as long as you can get a good rental income its going to be a good investment 6-8%pa and after 10 years sell even if its gone up a little bit you still got 10 years rent from it we used to buy in wales that where we from ,and can get houses for arond 40 thousand its better to buy 4 of them and then not all your egges in one basket and will bring in more rent than one house at 120 thousand
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Old Jan 4th 2015, 8:21 pm
  #64  
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Default Re: To buy or NOT to buy??

Well this is it, it is the rental income which is the thing. Quality of life by living in Spain is different to an investment for rental income or for making money. Although I have to say I could never buy in London now so am glad I bought when I did. And as for expert no I am not expert just happened that way. I dont think I have come over as an expert which I am not just saying one thing I certainly would not buy in Spain as an investment and I cannot think of anywhere else either where I would invest in a property. Australia is a good bit I gather but it is too far away I do not fancy a 24 hour flight just to change a light bulb.
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Old Jan 4th 2015, 8:54 pm
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Default Re: To buy or NOT to buy??

Originally Posted by shazzabob
as long as you can get a good rental income its going to be a good investment 6-8%pa and after 10 years sell even if its gone up a little bit you still got 10 years rent from it we used to buy in wales that where we from ,and can get houses for arond 40 thousand its better to buy 4 of them and then not all your egges in one basket and will bring in more rent than one house at 120 thousand
You will not be able to net 6-8% per year in London with rental income. You are living in a dream world

4% is the most you can hope for after costs

So if you have a spare half a million quid lying around then sure go for it. If you have to take out a buy-to-let mortgage then still the numbers do not add up
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Old Jan 4th 2015, 8:56 pm
  #66  
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Default Re: To buy or NOT to buy??

Originally Posted by cricketman
It makes me laugh when we have people talking as if they were experts on this forum saying that everyone should buy in London because it is a great investment

As I mentioned before, a 1 bed flat is close to £400k in central London. You think that is a good thing? And if you buy that 1 bed flat now for £400k then where are you expecting the return on your investment. OK you could rent it out for maybe £1700 but that is only a 5% annual return not including costs, taxes etc. Are you expecting more capital growth, seriously?

As for lifestyle, I have 2 very young children here in the North of Spain and it is absolutely fantastic. There is a great sense of community. People talk to each other in the street, neighbours talk to each other, everyone in the shops knows you and your kids. That is real quality of life. Who gives a sh*t how much a house is "worth"?


I can't think of a better place to bring my kids up
True and most people just can't think ahead. The majority of people believe the media, so if someone says London is booming, it's automatically a good investment. They hear Spain is in a recession and it's automatically a bad investment. I live in the West of Ireland and according to British people buying here would be a bad investment.
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Old Jan 5th 2015, 3:18 am
  #67  
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Default Re: To buy or NOT to buy??

Some of the posters on here seem to only be able to relate to pounds and euros. They appear to have no thought for quality. Oscar Wilde springs to mind.
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Old Jan 5th 2015, 5:29 am
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Default Re: To buy or NOT to buy??

Originally Posted by surreygirl
I do not think it is the only place in the world. I am from London so for me it is a good place for an investment. I do not know any other place in which to invest and even if I did I would not invest, it is easy for me to get over to the UK from Spain, but Spain is not somewhere where I would invest in property.
A house is a home not an investment.
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Old Jan 5th 2015, 5:35 am
  #69  
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Default Re: To buy or NOT to buy??

Originally Posted by cricketman
It makes me laugh when we have people talking as if they were experts on this forum saying that everyone should buy in London because it is a great investment

As I mentioned before, a 1 bed flat is close to £400k in central London. You think that is a good thing? And if you buy that 1 bed flat now for £400k then where are you expecting the return on your investment. OK you could rent it out for maybe £1700 but that is only a 5% annual return not including costs, taxes etc. Are you expecting more capital growth, seriously?

As for lifestyle, I have 2 very young children here in the North of Spain and it is absolutely fantastic. There is a great sense of community. People talk to each other in the street, neighbours talk to each other, everyone in the shops knows you and your kids. That is real quality of life. Who gives a sh*t how much a house is "worth"?

I can't think of a better place to bring my kids up
If a house was such a good so-called 'investment' why would people be forking out £1700pm in rent and not buying?
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Old Jan 5th 2015, 9:11 am
  #70  
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Default Re: To buy or NOT to buy??

I think we re drifting a little here, my original point was really based on whether to buy or rent in Spain! I always work on at least a 10 year plan regarding buying property, IF you invested in London I have no doubt you would make a better capital and yield return over that period of time, I certainly have! However, for a wonderful quality of life, if you can afford to buy your own place in Spain im certain in those 10 years you will have experienced a wonderful lifestyle from that property, no, you almost certainly would not have experienced the finacial return that London could have brought, but is Spain not afterall about a "lifestyle"?
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Old Jan 5th 2015, 5:31 pm
  #71  
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Default Re: To buy or NOT to buy??

Well people are buying in the UK. This is an article in the Mail

First-time buyers at highest level since 2007 crash: Nearly 330,000 people got onto the ladder last year despite soaring prices | Daily Mail Online
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Old Jan 5th 2015, 7:29 pm
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Default Re: To buy or NOT to buy??

Originally Posted by casa del sol
If a house was such a good so-called 'investment' why would people be forking out £1700pm in rent and not buying?
Many reasons. One is because often these are young professionals who are not able to save up a 10-20% deposit because rents are so high!

And then for a bank to actually lend you £400k for a 1 bed flat in London, you need to be earnng at least £80k. And the mortgage payments will be over £2k per month which is actually more than the rent!

Please don't be confused. I clearly said that buying in London at the moment would NOT be a good investment
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Old Jan 5th 2015, 8:27 pm
  #73  
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Default Re: To buy or NOT to buy??

Originally Posted by cricketman
Many reasons. One is because often these are young professionals who are not able to save up a 10-20% deposit because rents are so high!

And then for a bank to actually lend you £400k for a 1 bed flat in London, you need to be earnng at least £80k. And the mortgage payments will be over £2k per month which is actually more than the rent!

Please don't be confused. I clearly said that buying in London at the moment would NOT be a good investment
I think you are ONLY looking at this from a young persons OR 1st time buyers point of view, someone who needs to borrow large amounts of cash! I myself was NOT able to buy in London as a young man (im in my 40s now), it took time to build up.....not everyone who buys in London needs the sort of loan you are talking about, there are lots of cash buyers................ A better way to look at it perhaps is the following......."I have 400K, where is the best place over a 10 year period for me to invest that 400K"? If you invested that 400K in London property AGAINST Spain property there is ONLY 1 winner in capital growth & Yield return over a 10 year period, London wins by a long way!
Spain would certainly not be my choice to try to get myself onto the property ladder....its a great place to own a property and through this buy yourself a "lifestyle" at sometime in your life, BUT, IMHO this should only be considered once you have a certain amount of property security in somewhere like UK! I should add that I own in both London and Spain so im not being "Anti" investing in Spain!
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Old Jan 5th 2015, 8:35 pm
  #74  
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Default Re: To buy or NOT to buy??

First time buyers will always buy if they have enough deposit and the banks will lend them enough.A first time buyer is buying not as an investment but as a home over a long-term 25 years is the average mortgage. Think of the props like help to buy and shared ownership. They don't sell if prices fall if they can still make the repayments because of low interest rates. Renting is not a secure tenancy like in Spain ASTs mean a landlord can take the house back and try and increase rents often.

I agree about not being a good investment the yields are very poor and stamp duty has risen recently, and they are talking about a mansion tax.
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Old Jan 5th 2015, 10:08 pm
  #75  
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Default Re: To buy or NOT to buy??

Originally Posted by Pablo the sailor
If you invested that 400K in London property AGAINST Spain property there is ONLY 1 winner in capital growth & Yield return over a 10 year period, London wins by a long way!
In the past 10 years then of course

But investments are made only taking into account the future!

This is when your point of view is completely flawed. You are assuming that what has happened in the past 10 years will contiue to happen for the next 10 years

That point of view could not be more foolish

If I had £400k cash then I certainly wouldnt buy a London 1 bed flat with it. If I had £40 million cash then sure, as it would be a sensible investment as part of a large investment portfolio, but then so would a property in Spain
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