So Much To Think About
 

Argggg my head hurts. Buy a house in Spain, rent a house in Spain, rent my house in UK out, sell my house in UK. My notice period in work finishes in two weeks so thats me finished and ready for my property tour of Costa Blanca (£25 each hard sell tour thing) on the 26th. We had the estate around today who says our house will fetch £128k if we sell and £525 a month if we rent. If we rent in Spain then no tax on the UK rental income. I just dont know what to do for the best.

I cannot see me wanting to come back to this hell hole I really cant but never say never and all that but the strife that can go with renting the UK house out seems a bit daunting. I need a certificate for the Gas and the electric etc.

Arggggg, long road ahead. Oh yea. Anyone who can offer digs if we and the missus come over and look for rental property. We will pay of course :thumbup:

Thanks

Re: So Much To Think About
 

I see you are from Liverpool-you could pay in hubcaps. Don't worry about the money- there are plenty of estate agents, off plan developers, lawyers and mayors who will be delighted to relieve you of it as soon as you step off the plane.

Re: So Much To Think About
 

Well there are a lot of decisions, but make sure you make them on the right basis. If you are in Spain for more than 180 days then theoretically you have to pay tax in Spain. That means on your worldwide income and investments, i.e. income tax on the revenue from your rental, and wealth tax on the capital value.

Thats how I understand it anyway, unless its different when you are renting in Spain or laying off the Spainish rental against the UK income.

Re: So Much To Think About
 

I'm not an expert in this area, but one thing that comes to mind is that
the 525/month represents about 5% return (before tax). But ....
since you only have one property to rent, there will be times when the
place is empty and not bringing in any money.

Did the estate agent take into account the costs you'll have if you rent
the house out. Like regular redecorating (tenants can be sniffy about
taking a place that looks a bit shabby), lanlords inspections etc.

Pete

Re: So Much To Think About
 

We sold in england, I think in short, we cut and ran, we called it the great escape LOL
We thought about renting the house out in the UK, but then decided to sell it and take our chance . We love it
Watch out on the tour and practice a row or a disagreement. So you have an excuse.
Good luck but remember that is only one part of spain and this is a very big country.
Have fun

Re: So Much To Think About
 

Yes I looked at renting our Uk house very carefully, and with a revenue of £850 a month, once you take into consideration upkeep, redecorating, agents fees and tax, it just didn't seem worth it. So we sold up and invested the money elsewhere

Re: So Much To Think About
 

You have to make yourself a non-resident landlord with the Inland Revenue otherwise your tenant has to withhold the tax element from the rent and pay it over to the IR and you would have to claim it back, if applicable. As an NRL you receive the rent gross and declare it on your annual self assessment tax return. If your personal allowance covers your rent, expenses etc, hopefully no tax to pay! They will grant you NRL status as long as your tax affairs are up to date. UK rental income is always taxed in the UK.

Re: So Much To Think About
 

Aw mate....feel for you ! We were in the same boat last year.......lots of estate Agents and Letting agencies round etc. :unsure: :blink: :mad:

But came to the conclusion that letting wasn't for us. We couldn't afford to put anything by....just in case we had to pay for any problems i.e electrics, heating, plumbing and the problems with tenants not paying rent. And we figured we wanted to come out here for the family life and less stress....not to worry about our house back home.

We have been here for 8 months haven't looked back. But if the worst happend and we have to go back :frown: we will start again.....at least we have experienced a whole new way of life.

Oh ....also we have friends that rent out there home and have had nothing but problems..complaints like...the taps are too stiff....the floor boards are too creaky....the shower drips etc etc....they have to pay there agent to check everything and contract someone to do the work !!!! So whatever you do.....investigate fully - sorry ..... I'm sure you will anyway....:o

Good luck mate

Re: So Much To Think About
 

hi there smarties uk hi every one ! me and my girlfriend are moving to spain in about 4months we have decided to sell our place in the uk we have a place in spain already , i dont think property prices are going to go any higher here i think the property market will probably burst unless you are looking to keep your property long term i would bail out and take the money it will come in more handy out there ie if dont find work straight away / private health services then you have something to soften the blow rather than have no funds to survive on i think at the end of the day if it did not work out in spain you can sell up and come back and start again

Re: So Much To Think About
 

I had a bad experience renting a property a while back The letting agency was supposed to vet the tenants (huh!) I'm selling up.

Re: So Much To Think About
 

Have a look at renting your home to the local council or housing association.
This would have to be for a min of 3 years, free management, free internal maintainance and guaranteed rent even if the property is empty. They also decorate after the tenants have left, and leave it in the same way you left it.
Just an idea.

Re: So Much To Think About
 

Speaking from personal experience as a rental landlord.....sell up, take the money and run!!! That is what we are doing. We have had loads of problems with tenants in the four years we were landlords. Hope you find somewhere to rent in Spain, that is probably a better idea than buying in haste. Don't let the Property Company pressurise you into buying unless you are completely sure.

Re: So Much To Think About
 

We did that.......NEVER AGAIN!!!!!!!!!!

Re: So Much To Think About
 

Please expand on your experience, as a friend of mine has been doing this for a number of years and has not had any problems, and is happy with the regular income. But I am sure some people have had bad experiences as well as good. What council was it?

Re: So Much To Think About
 

We rented a flat out through Gosport Council (Hampshire) We had a young couple in who dug up the garden path, painted the rooms dark blue and purple, broke a gas pipe (whilst decorating) and had to be evacuated with their baby by the fire brigade who were called out by the gas board! They then said the gas repair man had stolen from them...the gas repair man was so upset he handed in his notice and they later admitted he hadn't stolen anything the money they had lost had been 'found' again. Then they phoned us to say they were moving out over the weekend, they had been in 6 months. We phoned the council who didn't know they had been re-housed and hadn't got anyone else ready to move in! We were given one months rent in lieu but the flat was empty for 2 months before they got someone else in.

The next tenant, a single mother, was a nightmare!!! Her son hacked a hole in the bedroom wall, daubed paint on the (freshly magnolia painted) walls, she complained of damp, accused me of being nasty to her because I suggested to her that it was condensation from her tumble drier (which it was) and sent me a very nasty letter saying that I was threatening towards her. I was ill with the worry and my blood pressure was so high I was having extremely bad nose bleeds lasting from 1 to 4 hours! It was a horrid time for us. We put the flat on the market and she wouldn't let anyone in to view and when the council finally moved her out last April she took the curtains with her, had pulled a kitchen work surface away from the wall and broke the taps on the kitchen sink leaving the tap running as it couldn't be turned off. The council refused to pay for repairs and then said they wouldn't be putting anyone else in the flat as the tenant had said the stairs to the garden at the back were dangerous (they aren't). It has been empty since last April and even paying the mortgage on an empty flat is far better than having tenants like that in! Maybe other councils are different, but I would never rent through Gosport council again!

As I said....NEVER AGAIN!!!