Hello all,

Looks like a valuable forum!.

Can you help us please?

A bit of background.

A couple, still working. Planned for 50-55 retirement but might be 70 and working.

Having holidayed in the South-Of-France and Javea for many years. We have recently started to spend some more time around the Javea region for the last 4 years. Mostly due to the cheaper and longer season.

We have been visiting Javea for some 25 years. From Family holidays with our own Children and other family members. Now recently been lucky to enjoy trips with our Grandchildren and would like now to buy villa there.

Despite working silly long hard hours for many years, Everything we have touched financially has turned to mud. From Mortgages to Low Cost endowments, pensions, investments and re-mortgages to pay off tyrant business landlords.

Despite this, we have now managed to save hard and have a deposit fund of £80,000.

Are we aiming too high?

*Who will loan us money for a decent family €250,000 villa?
*IS Javea the Place to buy?
*What are the pitfalls?

We are aiming to buy and rent out, with a view to moving full time and start a small business or full time in retirement.

I speak some French and we both get by in vary Basic Spanish.

Not Getting any younger.

Any Help or advice appreciated.

TAM

Hi!!

I've lived in Jávea for 10 years - & I'd say that yes, you should easily get a villa in that price range right now - however, although the rental market is still good - we've had a lot of families move here to rent in the past year, if you NEED the rental income it's never the right time

The advice is generally to rent first, and even though you have been visiting for many years and have decided it's for you, I think I'd still be inclined to rent for 6-12 months first (taking in the winter and renting out your UK home), living there full time can be very different to holidaying. As many have found out to their cost. We have all met and read here of people similar to yourself, convinced it was for them, but for a variety of reasons have ended up returning to UK, poorer but wiser. Missing the grandchildren is often high on the list. I'm not a huge fan of Costa Blanca, especially the southern half, but we visited Jávea for several years and really enjoyed it. Like everywhere else up there, it started to get very built up, so we haven't been back. (remember when the bit between the town and Arenal was mainly scubland? ) Lynnxa says your 80k would get you a decent place, I've no idea of current prices but that surprises me, I thought even in these times you'd have to pay a lot more than that.

As Concierge for the Spanish section of BE I would like to say hello and welcome.

BE is a very large expat website, so if you have problems finding your way around we have concierges who will try to direct you. The moderators for the Spanish forums are Mitzyboy and Fred James, moderators are there to ensure that the site runs smoothly within the rules of BE. Problems and complaints should always be addressed to a moderador who will look into the matter and deal with it efficiently and fairly. Our members who post in the Spain Forums are friendly and helpful with a wealth of knowledge of the issues of living in Spain. At the top of the page you will find a quirkily named thread called Free Beer which is full of important and useful information. Hope you enjoy your time participating in the forums.

Please let me know if you need any further help.

Rosemary

Hello,

Thank you for the replies.

My apologies, I should have mentioned.

We both still work full time in the UK. So moving there for 6-12 months is not an option.

TAM

If you want to buy a villa for €250k using finance and have €80k cash, you'll immediately lose at least €30k on purchase costs, furniture, etc, leaving at most€50k to put down. I doubt you'll get credit for such a small amount. Also I doubt you'll make much money from rental income by the time you've taken into account service charges, mortgage costs, maintenance charges, taxes, etc. In fact you'll almost certainly lose money.

Yes if you are working full time in the UK it really doesnt make much sense to buy in Spain

Come on some nice holidays instead

Thank you Chopera.

We have £80k cash, so I guess around €94,000.

We do have some other monies due from sale of a Property we half own with our daughter and vehicles. So maybe push the funds to €120,000.

Then I guess most sellers with an Asking price of €250,000 must have at least 10% to give away.

If we budget €250k less 10% + Fees so say €247k less €120k deposit leaves just under 127 Euros to finance.

I have also heard the idea of buying a property with a limited company?

TAM

The question is why do you want to buy?

Prices have dropped a lot but they are not a good investment because there are millions of empty properties. It will be hard to rent out and empty properties get destroyed by the sun in the summer and wind and rain in winter while you are not there

Then your holidays will be spent repairing the property

Keep your money in the bank and go and visit 5 start hotels!

That's what I do

You should offer no more than 80% of asking prices in the current market. Be prepared to offer about 70% and walk away, unless it's a real bargain that you really want. If you can finance 50% then it might be self financing. But I doubt it'll work out as a good financial investment, but something that will provide enjoyment. Remember that maintaining a property and dealing with all the issues doesn't always provide enjoyment. I've been keeping an eye on Javea and could spend a similar amount, but every time I do the sums it doesn't make sense, given my situation.

Agree, lots of people that can't sell are going down the rental route, they are all chasing the same market. Not saying it's the case of the OP, but there are people that buy relying on rentals to pay the mortgage, a risky strategy. Look at some of the rentals online, some do very well, others very badly, maybe some bookings in the summer and a very quiet winter. Friends of ours bought a holiday bolthole years ago, great, but like you say, they spent most of every visit painting, cleaning, running around chasing up the reams of paperwork, builders etc. Me, I'd rather save my money and spend it on some nice relaxed holidays.

We buy in the UK because the rental market is very limited, in most other EU states renting is quite normal and respectable.

That's not true

Hardly anyone in Spain rents. It is down around 15-20%, compared to 25-30% in the UK

In Germany and France renting is popular

The difference between the UK and Spain is that Spain has a vast oversupply of properties

France and Germany are not insignificant rental areas, you could also add the many ex pats in EU states who have seen the sense in renting. I believe that renting is also popular in large Spanish and Italian cities, I have a mate in Switzerland who states that rental is quite normal, as it is in Luxemburg.

Awaits CM's comments.

What? Who cares what they do in Switzerland?

This thread is about Spain. You said rental is normal and more frequent than in the UK. You are wrong, it isnt. Do some googling if you don't believe me