scottlandia

I live in UK but really want to move to Spain. I especially love Andalusia and Alicante. I've been researching moving for the last 3 years now. I work as a self employed graphic designer in London, I love my work and the opportunities in UK are great but really can't stand the lifestyle or weather.

I was thinking of buying an holiday rental in Spain first and carry on working in London. I've heard that the cost of buying and selling is high in Spain, so if I buy I only want to do it once. I've also read on peoples blogs that you should rent a flat and live in the area for 6 months before deciding to buy.

I've given myself 2 years to make a decision so thought I should connect with anyone who is either thinking of doing the same thing or has already done it.

Thanks for ready this.

SM

Rosemary

Hi and a warm welcome to the Spanish forum on BE. Myself and Fred James are the moderators for the Spanish forums whilst BEVS moderates Europe. Moderators are there to ensure that the site runs smoothly within the rules of BE. This is so that members gain the information that they are looking for and find their experiences on the forums to be friendly and worthwhile.

Problems and complaints should always be addressed to a moderator who will look into the matter and deal with it efficiently and fairly. Our members who post in the Spain Forums are usually friendly and helpful with a wealth of knowledge about the issues of living in Spain. I hope that you enjoy your time participating in the forums.

Please let me know if you need any further help.

Rosemary

missile

By holiday rental, do you mean buy a property to rent out and make money? Good luck with that

lyric030250

I am not understamding either, an apartment is an apartment regardless of the use, it is the buying that is a mistake.

Horlics

How is buying a flat to rent out going to address your issue of disliking the lifestyle and climate in the UK. If you buy a holiday rental other people will be the ones enjoying the lifestyle and climate. For you, it will be an investment.

As for others and their "good luck with that" comments. You really have to be a special kind of muppet not to be able to make a better yield from a holiday rental in Spain than a permanent BTL rental in the UK. If you want an investment, go for it.

missile

If you owned a holiday rental property you would appreciate it is not easy money. The problems are compounded when that property is located in overseas.

Dharma

Hi there, I am exactly in the same situation... I have given myself also about 2 years to decide... I plan to spend the whole of September 2016 around Andalusia and see how it feels...(renting a car and travelling around...)... Let us keep in touch! Good luck ;-)

Loafing Along

To put some numbers on the situation buying will carry extra costs of about 12% minimum, 8% Transfer Tax, 4% Notaries, lawyers etc etc. Buying an apartment a key issues will be the status of the owners Community fees, are they up to date(?) if not you will can have to pay up to two years owed fees. Rental returns are relatively low, two/three months of occupancy and nine/ten months empty. If you are in the UK will you use a rental agency, extra fees , can be up to 15%. On the Costa del Sol there are thousands of rental properties and recently long term rental, annual renewals, are more in demand - people who want to enjoy the lifestyle without the commitment - maybe an option as it provides a better income stream if you are in no hurry to move in.Also less wear and tear when compared to weekly tenant changeovers.
Definitely go with the plan to rent somewhere first before buying if your intention is to live there eventually. Amazing how one's view of a property and the area around changes after 6 months or so.
No rush still plenty of properties to buy and no significant change in prices , the only negative has been the depreciation of sterling, effectively putting up house prices in Spain over 10% for the average British purchaser in less than a month.
Andalucia is lovely just take your time

scottlandia

Yes a property as an investment until I can leave UK.

scottlandia

Thanks for all your replies.
I realise it sounds like I'm contradicting myself. I would love to just buy a flat in Spain now and permanently live there tomorrow. But the work situation puts me off! Dharma thats a good idea i think i need to do the same.
Cheers
SM

scottlandia

I think I'll clarify what I meant earlier and the options I've looking into.


Option A:
Buy a Holiday home and rent it out, stay there myself twice a year.
Using a Key holding company and pay their fees as well as any tax due.
Then when I'm ready to work Self-employed in Spain move into the rental permanently.

Option B.
Buy a Non Holiday rental and rent it out Long term (6 months) thru a letting agent.
Then when I'm ready to work Self-employed in Spain move into the rental permanently.


I'm 40 now and would like to move to Spain in next 2-3 years, with a view of having clients in Spain and from UK too.

So do you think it's worth bothering with the Holiday rental?

Thanks again
SM

Loafing Along

Am not a fan of holiday rentals :
1. If you want one it needs to be in the right place that means, on the Costa del Sol in July August the area will be over-crowded, impossible to park, poor service in most places and hot as hell.
2. If it is in a community for the long term residents, which you hope to be, the community will be the same and then a ghost town for the other months.
3. Andalucia has recently brought in new legislation controlling "holiday rentals" and have a series of quite precise requirements ( put it down to the hotel industry lobby ) .
If you want to live there in two/three years time spend that time exploring, long holidays in and around where you think you want to be. There is loads of choice and the market is not going to change fundamentally over that time frame. Good homes in good communities will always be expensive and cheap ones will still be cheap as the fundamentals do not change.
It took us five years of coast search from Catalunia to Marbella and we still got it wrong first time around.

Horlics

I bought in the Valencia region (I know there are differences but I thought Valencia was one of the most expensive tax wise) 2 years ago paid 12%. the lawyer's fee was a flat rate 850.

Your lawyer will check this and find out the situation. It is unlikely to be an issue and if it is you will know about it and have the opportunity to exit or continue

Relative to what? Certainly not UK BTL yields. I have one of those and my neighbour in Spain with an identical apartment to mine in Spain makes more money per year than I do. A friend who has an apartment in the same town achieved 35 weeks of occupancy last year. Granted, that has built-up over a period of 10 years and there is now a lot of repeat business. Both use trusted local people as keyholders and cleaners and pay around 10%.

I imagine an rental inland in a low quality development will be difficult to let at any time other than peak season, but the right apartment in the right place is a different prospect.

Do travel and rent though. Do not buy before you have spent time in the place you intend to live.

Horlics

In your situation, no. I would use the time to work out where you want to live and to familarise yourself with the market. You'll then be in a position to swoop on a good price when you see one.

Loafing Along

Of course a property bought over 10 years ago would have been at completely different, much lower price. No reason why it should notgive a good return . On the Costa and elsewhere in Spain they just went up and up and until 2008 when the wheels came off . Today the market is probably sitting around 2010 values. Mackiecompany is working with a 2 year horizon.
Think we agree on the advice "Do not buy before you have spent time in the place you intend to live"