Holiday home Spain or Portugal ?

B

bish123

Registered User
Messages
142
Hi all
I am back to exploring purchase of a holiday home in Spain or Portugal. The idea is to take another mortgage in that country and pay it before retirement. Overall budget is around 200-250k and main purpose is use it ourselves when needed and lock it when not. Also open for long term rental or house swap but its not priority. I can't decide the pros and cons of Spain vs Portugal or location. Any feedback is most welcome. TIA
 
Please see my previous truthful extensive posts on the most of this subject. In a nutshell, unless you’re dripping in loll stay well away from buying property abroad. If you want only one argument against:- Why buy Spanish/Portuguese property (with all the concerns, maintenance, upkeep, succession rights, local taxes, Irish revenue obligations, etc) when you can rent there cheaply especially during the off season and if something goes wrong you just contact the owner.

My new.property abroad mantra:- If you want a life of property pain; don’t hesitate to buy in Spain. This is the best advice you’ll get and it’s for free.
 
Agree with Leper on this - you would have a hell of a lot of holidays for 250k and none of the headaches.
 
I have a relative interested in doing this. He plans to spend 6 months a year there from Oct to March when he retires. Apt to cost around 300k. Hoping to buy in the Algarve. Kids will be in college, mortgage gone, reasonable pension which might go a bit further with less heating bills in the Winter. What’s not to like ?
 
Mamamia22 said:
I have a relative interested in doing this. He plans to spend 6 months a year there from Oct to March when he retires. Apt to cost around 300k. Hoping to buy in the Algarve. Kids will be in college, mortgage gone, reasonable pension which might go a bit further with less heating bills in the Winter. What’s not to like ?
Click to expand...

On top of the purchase price, there are legal fees and various taxes. On a 300 K property in Spain you are looking at additional immediate purchase costs of approx 36K; just those purchase costs alone would fund a few winters in Spain.
 
I've looked at this too. Looked at moving to Portugal for the (now cancelled) retirement tax breaks.
We had picked an area, we looked at properties and something kept stopping us. It wasn't just that we were looking 4 years ahead, but not really knowing an area, language, taxes & maintenance were hurdles in the way.

Then reading Lepers annual exploits and then finding my uncle does something similar, then finding several people in my golf club also do similar and a friend is just finishing a two month sojourn in Spain - and they all have one thing in common. They RENT.

And the main reason is it is exceptional value to do so from October to March.
 
peemac said:
I've looked at this too. Looked at moving to Portugal for the (now cancelled) retirement tax breaks.
We had picked an area, we looked at properties and something kept stopping us. It wasn't just that we were looking 4 years ahead, but not really knowing an area, language, taxes & maintenance were hurdles in the way.

Then reading Lepers annual exploits and then finding my uncle does something similar, then finding several people in my golf club also do similar and a friend is just finishing a two month sojourn in Spain - and they all have one thing in common. They RENT.

And the main reason is it is exceptional value to do so from October to March.
Click to expand...
Yes, renting is a very good option. I like the idea of owning a home away from home is very appealing. Also agree, financially it may not be the best investment but as a matter of fact millions of European own holiday home in Portugal and Spain.
 
On positive note, I personally know three examples who are very happy with thier purchase in Spain.
1. My pension advisor (I hope he is financially literate :) has holiday apartment canaries.
2. A colleague has bought a villa near Alicante after downsizing thier family home in Dublin. They were sick of maintenance and cleaning of big house after kids moved out.
3. Another colleague got redundancy near retirement. Thier family home is already paid so they decided to spend it on holiday home.

One thing is common - it was not investment but utility driven decision.
 
Yes I know of a very happy retiree in the Algarve. But property prices look to be in a bubble there now. I accept that from a succession point of view it must be complicated. Any posters in the Algarve care to add their experiences ? For some reason I think the Algarve experience might be a little different to Bulgaria but am open to correction.
 
There are pros and cons to either a Holiday home in Ireland or abroad, if you have to make a choice, which would you use most in retirement? We chose the winter sun and make use of it for 6 months of the year, when not using it we ‘Lock and leave’, similar to leaving a holiday home vacant in Ireland, but we do have maintenance staff on site if required.

When asked, we always recommend renting long term in the area rather than purchasing and rental prices are about same per month as in Ireland as are purchase prices, depending on the area. Same with entertainment costs, golf is expensive especially during the winter, food and drink prices can be reasonable depending on what you want but your euro can go a long way.

Once the holiday honeymoon period is over, you would really want to live in the area i.e. it becomes your home from home. There is a large expat community and plenty of Irish pubs if you want. Health cover depends on personal circumstances, private health insurance, travel insurance and EHIC etc. Medical clinics provide a range of services and chemists prices are reasonable.

If you are going to purchase in Spain you will need an NIE to set up a Bank Account for utility bills, community fees etc. The purchase process usually uses an English speaking lawyer and we know of owners who recently completed sales in 2 weeks.

We are very happy with our choice, but it is not for everyone and like all investments, you need to carry out due diligence.
 
I bought a holiday apartment in the Costa Blanca back in 1998. I was 27 years old at the time! Myself and GF at the time went on one of those agency funded visits and I ended up buying a half-finished place for €65k. We broke up soon after, but I kept it for 4 years. Didn't use it much, but my family did, and a cousin of mine eventually moved there. I sold it in 2002 and made a gain.

I'm back now in my 50s and thinking of going again. My 3 kids will be out the door in 4-5 years, and I have cash available that isn't doing anything else.

I get the argument that its an option to just continually rent, but my thought process is as follows.

I HATE the Irish weather. It really affects my mode, and I'm pretty much a grump for 7 months of the year. I work from home, so I find myself stuck in the house all the time, when in fact I love being outdoors. I cycle, I sail, I play golf etc etc, all of which is really only an option here for a few months per year.

I am also really concerned about healthcare in Ireland. I was in an A&E recently and it really opened my eyes. I don't see it getting any better, and I want to establish residence somewhere else so that I have access to another healthcare system.

I have no firm attachment to Ireland either. I don't live in an area where I grew up, I don't have a wide circle of friends that I see regularly and I'm not really into our unique pastimes like GAA, weddings, hard drinking and Christy Moore gigs. On the flip side, I love continental Europe: cafe culture, travel, football, history, language, skiing etc.

All of the above applies to my wife as well as myself.

So my thinking is that I will gradually transition to permanent residency in another EU country, and keep my home in Ireland as more of a holiday home. The plan is to buy something small now, acclimatise over a few years, and then upgrade when appropriate. If prices slump, its no big deal, as I'll benefit when I need to upgrade. I'm not looking to make a capital gain, and I will always have a home in Ireland.

So why not just rent as the need arises?

It may sound strange, but for me, its a state of mind. I want to feel committed to the transition, and to make it work. I don't want to be here in 10 years wondering how I'm still staring out the window at grey skies and a sodden garden 8 months of the year. I understand that it may not work out, and that there is a good chance I will loss money, but it won't bankrupt me, and at least I won't have that nagging doubt that it was something I could have done but didn't try. I don't think I will commit if I just jump around renting year after year.

I am thinking of buying on the Costa Brava, between Barcelona and the French border, close to Girona airport. Heading there next week to visit a few places.
 
I’m loving the post of @goosebump. I’ve spoken at length on this forum advising people not to buy property abroad. I did point out that if you are rolling in dosh and don’t have to sell your home in Ireland then buying property abroad might be good for you.

We’re in our 3rd month in Spain and the days are flying by while we spend our last few weeks here before we return to Ireland. We may have to give some thought about becoming Spanish residents and use our Irish home as a holiday destination June to September inclusive.

We would have to pay a few bob more in income tax, but health insurance cost in Spain is a fraction of what we pay to VHI and cover is probably better. We speak good Spanish and would qualify (no means test) for two free holidays in another part of Spain as Pensionistas. The drawback for us is the Spanish love for more and more red tape.

Incidentally, last Saturday we met an 87 yo Dublin lady who moved to the resort 2 years ago, bought property in her daughter’s name and has secured her Residentia quite easily. Eventually, she wishes her ashes to be placed in the same grave as her late husband back in Dublin. She’s sprightly, active and a tonic.
 
goosebump said:
I bought a holiday apartment in the Costa Blanca back in 1998. I was 27 years old at the time! Myself and GF at the time went on one of those agency funded visits and I ended up buying a half-finished place for €65k. We broke up soon after, but I kept it for 4 years. Didn't use it much, but my family did, and a cousin of mine eventually moved there. I sold it in 2002 and made a gain.

I'm back now in my 50s and thinking of going again. My 3 kids will be out the door in 4-5 years, and I have cash available that isn't doing anything else.

I get the argument that its an option to just continually rent, but my thought process is as follows.

I HATE the Irish weather. It really affects my mode, and I'm pretty much a grump for 7 months of the year. I work from home, so I find myself stuck in the house all the time, when in fact I love being outdoors. I cycle, I sail, I play golf etc etc, all of which is really only an option here for a few months per year.

I am also really concerned about healthcare in Ireland. I was in an A&E recently and it really opened my eyes. I don't see it getting any better, and I want to establish residence somewhere else so that I have access to another healthcare system.

I have no firm attachment to Ireland either. I don't live in an area where I grew up, I don't have a wide circle of friends that I see regularly and I'm not really into our unique pastimes like GAA, weddings, hard drinking and Christy Moore gigs. On the flip side, I love continental Europe: cafe culture, travel, football, history, language, skiing etc.

All of the above applies to my wife as well as myself.

So my thinking is that I will gradually transition to permanent residency in another EU country, and keep my home in Ireland as more of a holiday home. The plan is to buy something small now, acclimatise over a few years, and then upgrade when appropriate. If prices slump, its no big deal, as I'll benefit when I need to upgrade. I'm not looking to make a capital gain, and I will always have a home in Ireland.

So why not just rent as the need arises?

It may sound strange, but for me, its a state of mind. I want to feel committed to the transition, and to make it work. I don't want to be here in 10 years wondering how I'm still staring out the window at grey skies and a sodden garden 8 months of the year. I understand that it may not work out, and that there is a good chance I will loss money, but it won't bankrupt me, and at least I won't have that nagging doubt that it was something I could have done but didn't try. I don't think I will commit if I just jump around renting year after year.

I am thinking of buying on the Costa Brava, between Barcelona and the French border, close to Girona airport. Heading there next week to visit a few places.
Click to expand...
Great take, especially with regard to the healthcare situation. I'm very much of a similar mind but Florida is my target destination!
 
LLB123 said:
True but sunshine & margaritas on tap should solve a lot!
Click to expand...
The sunshine is for free but will you have enough for the bottomless margaritas after you pay for health insurance
More then once I've been told that the €1500 that I pay yearly to Laya wouldn't even cover a months subscription of decent policy over there

And not only that then you have to deal with the locals ;)
youtu.be

Grand Theft Auto VI Trailer 1

Song: Love Is A Long RoadArtist: Tom PettyWritten by Thomas Earl Petty and Michael W. CampbellPublished by Universal Music Works on behalf of Wild Gator Musi...
youtu.be youtu.be
 
We would have monthly holidays to Europe....March, April, May, June, September, October. The spend would be circa €1500 per trip staying in hotels or apartments. Usually weekly breaks.

We mix the countries that we visit.

After each holiday, we are glad to be heading home.

It is nice to visit different places each trip. Renting an apartment rather than a hotel room can be great. Lots more space, cooking facilities (not that we have ever cooked in a rental). Hotels have nice communal spaces, 24 hour reception, options of half board stays etc.

The problem with weekly holidays is that we are on the go from early morning to the late evening seeing this that and the other. Very tiring.

I think if we had our own place we might slow down considerably and treat our trips as a home from home rather than a holiday....some days not even venturing out unlike a stay in a hotel for a week.

However, I think that it would be possible to find an apartment belonging to someone else, with everything that you need and rent it for 3 or 4 months as needs be. You then don't have ownership problems or red tape to deal with. It could be both a home from home and a base for holiday trips.

I like Ireland, I like having family close by. I think I would be worried about leaving my home in Ireland or abroad unoccupied for several months.

I think that a person needs to break themselves in gently with some monthly rentals or longer before committing themselves to an outright purchase.
 
You must log in or register to reply here.
Back
Top