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Regrets about buying a property in Spain

Regrets about buying a property in Spain

Old Oct 15th 2019, 8:55 am
  #1  
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Default Regrets about buying a property in Spain

Hi Everyone

My husband and I have been renting a nice apartment in the centre of Valencia for many years. The location is good but noisy, the landlady is fair and we actually have parking. At least once a year we consider buying a property, but always stop short of pulling the trigger and buying because the type of house we would want requires a mortgage. We can get a mortgage but when we look at all the closing costs (buying or Selling) inheritance tax and capital gains, it puts us off buying. I am from Canada and he is from Wales and we are not sure it would be our forever home. I’m sure when my husband passes away (hopefully not for a while, he is only 52) I would want to pick up and move back to Canada as I have no family here.

Has anyone jumped down the rabbit hole, bought and property and regretted it profusely?
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Old Oct 15th 2019, 9:08 am
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Default Re: Regrets about buying a property in Spain

I bought a town house in Andalucia in 2003, sold it in 2017 and bought an apartment in the same town (because health problems brought accessibility issues with the house, therefore long term implications as we got older, into sharp focus). No regrets, although obviously I wish the property market had not crashed in 2008 or I might have made a profit on the first house instead of just about breaking even! It is seriously expensive to sell one property and buy another here, as you will have paid ITP on the first purchase, plus lawyer and notary fees, then most likely have to pay high estate agent commission (I paid 5%) and plus valia to sell it (I had no CGT to pay as I was investing all the proceeds in another property within 2 years, and had lived in it for at least 3 years as my principal residence). I didn't have 3% retained for potential CGT liability either, as I obtained a certificate of fiscal residence from Hacienda to present to the notary. Then ITP is payable all over again on the purchase of the new property. However, I take into account that even with all these expenses, I end up with a property I could not afford to buy in my country of origin (the UK) and if the property market had not crashed in Spain I couldn't afford it either. I certainly couldn't have afforded it back in 2003.

If you sell when you are 65 or over and have lived in the property as your main residence for at least 3 years then there will be no CGT to pay.

With regard to IHT, though, the position in Andalucia has actually got a lot better since I first bought. Changes introduced in 2018 mean that there is a 99% exemption if a family home is inherited by a spouse or child.
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Old Oct 15th 2019, 12:27 pm
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Default Re: Regrets about buying a property in Spain

Mortgage setup costs were recently reduced (so I understand, I do not have) so make sure you have all the latest costs/figures before you make a decision.

Obviously there are pros and cons like all things in life.

I have just left a rental and bought and feel much happier and secure and I think rental costs will keep going up sharply. But it is a tough decision which everyone needs to consider carefully given their own circumstances/budget etc etc

Will you really go back to Canada?? I left the UK 19 years ago and do not have family here but would never consider returning I feel more at home here and prefer the lifestyle etc.
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Old Oct 15th 2019, 1:18 pm
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Default Re: Regrets about buying a property in Spain

Strange.. We cant wait to buy our own place. We have been renting for 3 yeard together, and my girlfriend has been renting since she was 19.. We have spent the best part of 80,000 euros lining random spaniards pockets, rather than investing it into our own house.

Mortgage repayments for the house we are looking at are half of the rent that we pay...

when you think of it like that.. Its scary.
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Old Oct 15th 2019, 7:50 pm
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Default Re: Regrets about buying a property in Spain

Have you thought of buying a park home, not a property in Spanish terms so no lawyers fees etc. either buying or selling, more like buying and stalling a car.
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