Guidance required.
May 29th 2018 | 9:52 pm
#1
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Joined: May 2018
Posts: 3
Guidance required.
So basically myself and my wife currently rent a home in the U.K., we have been saving for a deposit and we will soon hit our target of £50k. After our last couple of holidays to Spain and canaries we have thought against buying in the U.K. As it will most likely take us past retirement age to pay off the house, so instead have thought about buying a home in Spain. Initially this woul our holiday home 4-5 times per year and rent out to family and friends at other times with a view to move permanently when retirement age hits. I have spoken to an Spanish estate agent who has told me all abouhow the mortgage system works in Spain and taxes and has advised me to have 30% deposit minimum plus and extra 14% for taxes etc. Does anyone have any recommendations of areas to live , I don't want too far from the coast as I want to appeal to friends and family to use but also don't wanna be smack in the middle of Blackpool in the sun (no offence intended).
May 29th 2018 | 11:44 pm
#2
Forum Regular
Joined: May 2017
Posts: 256
Re: Guidance required.
You would need to give a bit more information to get answers. Eg, would you live in Spanish speaking village? What regions would you consider?
May 30th 2018 | 12:03 am
#3
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Posts: 3
Re: Guidance required.
in terms of region I'll be liking from Valencia to Malaga. I would like a snish speaking village as I can converse in Spanish however myife can't, also I'd like it to appeal to family members short term so would like somewhere close to the coast. Other than that I'd like the canaries but I am aware that the cost of living is vastly more expensive over there.
May 30th 2018 | 12:48 am
#4
Moderator
Joined: Mar 2007
Posts: 15,149
From: Costa Valencia
Re: Guidance required.
So basically myself and my wife currently rent a home in the U.K., we have been saving for a deposit and we will soon hit our target of £50k. After our last couple of holidays to Spain and canaries we have thought against buying in the U.K. As it will most likely take us past retirement age to pay off the house, so instead have thought about buying a home in Spain. Initially this woul our holiday home 4-5 times per year and rent out to family and friends at other times with a view to move permanently when retirement age hits. I have spoken to an Spanish estate agent who has told me all abouhow the mortgage system works in Spain and taxes and has advised me to have 30% deposit minimum plus and extra 14% for taxes etc. Does anyone have any recommendations of areas to live , I don't want too far from the coast as I want to appeal to friends and family to use but also don't wanna be smack in the middle of Blackpool in the sun (no offence intended).
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Rosemary
May 30th 2018 | 1:09 am
#5
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Joined: Apr 2007
Posts: 2,675
Re: Guidance required.
The generally held opinion is that you should "try before you buy" ie rent in a couple of areas to see if it is compatible with you. Purchasing should be a long term decision as selling in Spain can be difficult and you can end up with a serious white elephant. I would bet that there are a lot of ex-pats in that position - living somewhere they hate, beside the neighbours from hell etc because they cannot sell their home.
May 30th 2018 | 2:32 am
#6
Lost in BE Cyberspace
Joined: Feb 2013
Posts: 6,255
Re: Guidance required.
So basically myself and my wife currently rent a home in the U.K., we have been saving for a deposit and we will soon hit our target of £50k. After our last couple of holidays to Spain and canaries we have thought against buying in the U.K. As it will most likely take us past retirement age to pay off the house, so instead have thought about buying a home in Spain. Initially this woul our holiday home 4-5 times per year and rent out to family and friends at other times with a view to move permanently when retirement age hits. I have spoken to an Spanish estate agent who has told me all abouhow the mortgage system works in Spain and taxes and has advised me to have 30% deposit minimum plus and extra 14% for taxes etc. Does anyone have any recommendations of areas to live , I don't want too far from the coast as I want to appeal to friends and family to use but also don't wanna be smack in the middle of Blackpool in the sun (no offence intended).
May 30th 2018 | 2:53 am
#7
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Posts: 3
Re: Guidance required.
All good, but how long will it take to hit retirement age? If you buy in Spain, you'll still be renting in the UK and also paying a mortgage in Spain. It usually makes more sense to have a mortgage in the place you actually work and live. While some people can give you ideas of areas, doesn't mean it will actually suit you for retirement and places can change too. As you mentioned Canaries (depends which island), a lot of people are also not made for smaller islands and get bored very quickly.
May 30th 2018 | 2:54 am
#8
Forum Regular
Joined: May 2017
Posts: 256
Re: Guidance required.
There are many lovely resorts, towns and villages between Valencia and Malaga. However, nearish to an airport might suit your family and friends. Murcia airport has lots of places not too far away. Gorgeous resorts and villages east of Malaga too. As previously said try before you buy. Have fun exploring.
May 30th 2018 | 3:13 am
#9
Lost in BE Cyberspace
Joined: Feb 2013
Posts: 6,255
Re: Guidance required.
its 20 years for me to retirement, hence planning ahead now. I have family tha have bought on Costa del sol but they were lucky enough to relocate jobs too. I however don't have that luxury. I appreciate that ermine will have their own opinion on where is a good place or not however I'm keen to hear about experiences that folk on here have had whether that be positive or negative. I'm not one for big tourist places hence you'd never find me in Benidorm or torremolinos not saying they not nice places but for me I like more authentic when I travel to Spain, paella over pie and chips any day of the week.
up equity. Prices in Spain are currently very high too and will probably drop dramatically again anyway, especially with an ageing population and people who can't afford due to low wages. Although we also bought, we just went for a plot of land as it was still cheap a few years ago and it also gives you time to see if you really like the area. Depending on land regulations, just stick a modular unit on it now and build once your ready.
Last edited by Moses2013; May 30th 2018 at 3:17 am.
May 30th 2018 | 4:14 am
#10
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From: London (mainly)/Oliva
May 30th 2018 | 5:23 am
#11
Forum Regular
Joined: Mar 2018
Posts: 201
From: Gandia
Re: Guidance required.
I think what Moses is referring to is the prices compared to the salaries of 30 somethings that can't afford to get on the property ladder here.
The only thing I would add to that, is that expats generally are buying different properties. The Spanish generally aren't buying Villas or Holiday apartments in Denia or Altea.
So the fact that the average young Spaniard is struggling to afford an apartment in Bilbao/A Coruña/Malaga/Sevilla/Valencia isn't really going to effect the Villa market etc.
Basically I wouldn't want a mortgage in a different currency to the one I had am income/salary in. Changes in currency values could make that mortgage cheap or suddenly unaffordable! You have no idea what the value of the pound will be after Brexit.
May 30th 2018 | 8:17 pm
#12
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Joined: Feb 2013
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Re: Guidance required.
Properties in many areas are cheap ----> for expats and in the majority of places haven't recovered from the crash a decade ago.
I think what Moses is referring to is the prices compared to the salaries of 30 somethings that can't afford to get on the property ladder here.
The only thing I would add to that, is that expats generally are buying different properties. The Spanish generally aren't buying Villas or Holiday apartments in Denia or Altea.
So the fact that the average young Spaniard is struggling to afford an apartment in Bilbao/A Coruña/Malaga/Sevilla/Valencia isn't really going to effect the Villa market etc.
Basically I wouldn't want a mortgage in a different currency to the one I had am income/salary in. Changes in currency values could make that mortgage cheap or suddenly unaffordable! You have no idea what the value of the pound will be after Brexit.
I think what Moses is referring to is the prices compared to the salaries of 30 somethings that can't afford to get on the property ladder here.
The only thing I would add to that, is that expats generally are buying different properties. The Spanish generally aren't buying Villas or Holiday apartments in Denia or Altea.
So the fact that the average young Spaniard is struggling to afford an apartment in Bilbao/A Coruña/Malaga/Sevilla/Valencia isn't really going to effect the Villa market etc.
Basically I wouldn't want a mortgage in a different currency to the one I had am income/salary in. Changes in currency values could make that mortgage cheap or suddenly unaffordable! You have no idea what the value of the pound will be after Brexit.
