Thinking of buying a holiday home - annual costs
#17
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Re: Thinking of buying a holiday home - annual costs
Buy a place and Join a house swap group and you can holiday anywhere in the world. You are not tied to one destination.
IMO renting is money down the drain unless short term to see if the area is suitable.
IMO renting is money down the drain unless short term to see if the area is suitable.
#18
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Re: Thinking of buying a holiday home - annual costs
A flat is up for sale for 300k or will rent for 600 euros per month
- I have 300k cash and can stick it in a 5 year bond at 5% return (4% after tax)
- 4% of 300k = 12k per year
- So if I can rent for less than 1k per month then I am better off renting. Plus I have no taxes, no maintanance fees and can move whenever I want
Seems to me that buying is money down the drain
#19
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Re: Thinking of buying a holiday home - annual costs
Let's see...
A flat is up for sale for 300k or will rent for 600 euros per month
- I have 300k cash and can stick it in a 5 year bond at 5% return (4% after tax)
- 4% of 300k = 12k per year
- So if I can rent for less than 1k per month then I am better off renting. Plus I have no taxes, no maintanance fees and can move whenever I want
Seems to me that buying is money down the drain
A flat is up for sale for 300k or will rent for 600 euros per month
- I have 300k cash and can stick it in a 5 year bond at 5% return (4% after tax)
- 4% of 300k = 12k per year
- So if I can rent for less than 1k per month then I am better off renting. Plus I have no taxes, no maintanance fees and can move whenever I want
Seems to me that buying is money down the drain
Last edited by Moses2013; Nov 20th 2014 at 2:32 pm.
#20
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Re: Thinking of buying a holiday home - annual costs
Well it isn't that easy and if it was that simple nobody would buy. Why buy anything if it loses value (car, phone etc.) You would also need 300K cash first :-). Some people buy because it's a lifestyle choice and others want to make a profit. Depending on the area rents could also go up and you could also make profit by buying now and selling again.
But to say that renting is throwing money down the drain isnt true. Certainly not in the current environment
The last flat I rented was for 800 euros per month. They also had it up for sale for 800,000 euros!
#21
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Re: Thinking of buying a holiday home - annual costs
It always depends (Price, location, lifestyle). If you're just renting short term (holidays), or are always moving around, you are probably better off renting. If it's your main home and you're planning to stay for longer why rent if you can buy at a good price. A holiday home is different and many have made a loss, but not all and some might retire in Spain or make more money by renting it out. Our mortgage here at home is lower than what we would spend for rent, so it's a no brainer.
#22
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Re: Thinking of buying a holiday home - annual costs
That's the extreme end of the scale though. A small house can be bought for circa 35k euro in southern Costa Blanca and will rent for around e200 per month. That's around an 7% return before costs.
If you can be bothered with the hassle of renting it out...
If you can be bothered with the hassle of renting it out...
#23
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Re: Thinking of buying a holiday home - annual costs
Unfortunately I have seen nothing under 300k that I would be happy to live in. And the ones I'd really like to live in are still over 500k
#25
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Re: Thinking of buying a holiday home - annual costs
I never mentioned renting a property out at all. I suggested that owning a holiday home does not limit anyone to just holidaying in that one place. Home swaps work well enabling the home owner to visit their holiday home as and when they want and visit other countries at other times.
Only a (snip) would buy a flat for 300K and expect a good return on their investment and only a (snip) would suggest it.
Only a (snip) would buy a flat for 300K and expect a good return on their investment and only a (snip) would suggest it.
Last edited by Rosemary; Nov 20th 2014 at 4:22 pm. Reason: Language
#26
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Re: Thinking of buying a holiday home - annual costs
I have been looking for weekend/holiday homes in Asturias that we can use in the summer. I would want one that you can walk to the beach (less than a few hundred meters), with a garden and close to a small town or village
Anything like that is over 300k and anything nice over 500k - and you can only use them 6 months per year due to the weather
This is the best I've seen so far, but a little over budget
http://www.idealista.com/inmueble/2077388/
Last edited by cricketman; Nov 20th 2014 at 3:24 pm.
#27
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Re: Thinking of buying a holiday home - annual costs
Yes, you can buy a lot with €500K. EDIT: or €300K.
But he's right about renting. Whilst I can't speak for other areas, rents are disproportionately cheaper than a mortgage at present.
Unfortunately, Spanish (read: mallorquin) landlords around here tend to live in another world, and can be a real nightmare in terms of penny wise and pound foolish mentality, and tend to shove all problems on the tenant. If the boiler breaks down or the roof develops a leak, it's not their problem. YOU were using it at the time, after all. Taking them to court is a royal pain in the arse, and doesn't guarantee you'll receive any relief. Not to mention that a "deposit" is widely considered a "gift" or "key money". Don't expect to get it back.
Last edited by amideislas; Nov 20th 2014 at 3:30 pm.
#28
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Re: Thinking of buying a holiday home - annual costs
[QUOTE=whitelinen;11478768]
buy a flat for 300K and expect a good return on their investment QUOTE]
Erm, you are the one that suggested it
The example I gave was a flat, but could have equally been a house
You can rent houses all across Spain for 600 euros per month that would cost 300k plus to buy. The same calculations apply
buy a flat for 300K and expect a good return on their investment QUOTE]
Erm, you are the one that suggested it
The example I gave was a flat, but could have equally been a house
You can rent houses all across Spain for 600 euros per month that would cost 300k plus to buy. The same calculations apply
Last edited by Rosemary; Nov 20th 2014 at 4:25 pm. Reason: Removed language in quote
#29
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Re: Thinking of buying a holiday home - annual costs
Well you can, but a pretty average one in a not so good location
I have been looking for weekend/holiday homes in Asturias that we can use in the summer. I would want one that you can walk to the beach (less than a few hundred meters), with a garden and close to a small town or village
Anything like that is over 300k and anything nice over 500k - and you can only use them 6 months per year due to the weather
This is the best I've seen so far, but a little over budget
casa independiente en venta en pumarin, 44. caravia
I have been looking for weekend/holiday homes in Asturias that we can use in the summer. I would want one that you can walk to the beach (less than a few hundred meters), with a garden and close to a small town or village
Anything like that is over 300k and anything nice over 500k - and you can only use them 6 months per year due to the weather
This is the best I've seen so far, but a little over budget
casa independiente en venta en pumarin, 44. caravia
Terreno Urbanizable en Caravia en Resto Provincia de Asturias - Caravia 133337732
Or this for 28K
http://www.fotocasa.es/terreno/colun...wGrid=10&tta=0
You can build the most amazing house for 150K-200K these days.
Last edited by Moses2013; Nov 20th 2014 at 4:55 pm.
#30
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Re: Thinking of buying a holiday home - annual costs
Welll I don't know the area that well but a piece of land is offered here for 85K and it's just asking price.
Terreno Urbanizable en Caravia en Resto Provincia de Asturias - Caravia 133337732
You can build the most amazing house for 150K-200K these days.
Terreno Urbanizable en Caravia en Resto Provincia de Asturias - Caravia 133337732
You can build the most amazing house for 150K-200K these days.
In that case, €500K starts to look a lot more reasonable. Hell of a lot cheaper than a flat in London anyway. But then, as you have chosen a flat in a suburban expat neighbourhood, you often find out that your neighbours (on the other side of your lounge wall) are not exactly the friendliest bunch, you have to keep everything locked up tight, and the snotty kids down the street keep scratching your car. The local supermarket is 20% more expensive than everywhere else (but they do carry Sharwoods, Carling, HP sauce, and mince pies).
Right, then.
As a practical matter, with an open mind, a bit of independent research, without taking everything everyone tells you as a patent truth, you can get (or build) triple or quadruple the house on a good chunk of land, for half the money or less, in a far more palatable area - presuming you aren't hell-bent on living in an expat area or directly on the beach.