Hi Cricketer, You have the advantage of me and I'm having a few senior moments about another thread on chest freezers; in another I'm getting confused about somebody zooming (means different things to me, I've just discovered) you'll have to explain and I'll see if I can get the fingers moving to answer you.
Cricketer, you're right. More importantly, I can now trace my "senior moments" to 2015. I didn't realise I have been in these parts for over five years. The railway line I spoke about is still dormant, but the new international airport (Murcia International) is operating smoothly.
Hi LeperHi Derry,
I didn't walk blind into buying Spanish property like some in that recent RTE television programme. Their motive largely was greed (but with few exceptions). Mine was investment especially for our retirement years (a different sort of greed). I was never astute with money, lost heavily on Eircom shares (but it could have been much worse) and a subsequent investment portfolio was about as inspiring as Donald Trump's recent efforts. We bought an Irish holiday home years before and the location was too isolated, I kid you not. We took a hit there too with replacing the kitchen's flat roof, refurbishing the whole house with new windows etc, improving the site etc before we sold it on. Twenty years ago I had a lump sum to invest and I did all my research and that was a time when Jetmagic advised that 50,000 people from Munster had purchased property in the Alicante region alone.
My sights were set on Spanish bricks and mortar. What could go wrong? We bought an apartment that was going to have us set in clover after retiring. In 2007 the hit came and price of property in Spain was hit much harder than in Ireland. OK! - We weren't selling anyway, but thought we could plough through the recession, pick up some rentals, keep costs down and wait for things to improve. Then B R E X I T, something I needed like root canal treatment. But, in the years leading up to what will eventually be Brexit, property prices increased and even ours was within €20K of what we paid. We thought we'd have another year of increase in prices and lax as we are we decided to hold ground and with my luck, the Coronavirus struck. Certainly, this will affect mainstream property prices in Spain, but probably only those that were "rubbishy." Rule Number 1 if buying property in Spain:- Ensure you can sell it, even at a loss. Some properties there cannot be sold, I kid you not (no planning permission, water treatment plant near etc).
We continue to use our apartment and rent it out when we are not using it. But, the rental market on the Costas is swarmed with people like us and it is a Renters' Market. Our apartment is good, centrally located, modern, has magnificent views, within 2 mins walk to the beach and supermarket, restaurants and rental prices off season are around €700 per month including utilities, internet, parking etc. It is the warmest and driest area of Spain and attracts retired couples mainly from the UK.
If I were asked to provide one sentence to prevent people buying property in Spain it would be:- You will pay €2K in community fees, Spanish taxes, Public LIghting Tax, Car-Parking tax even before you pay for electricity, water, refuse, internet charges, advertising. If you are comfortable with this then go ahead and buy Spanish property. Now is the time that is right and you'll never get a better chance to buy the right property.
Is it easy to rent out your Spanish property?:- During June, July and August you could make a fortune (€550 - €650 per week in rentals; deduct utility and internet costs). We use the place during the whole summer for family and friends thereby sacrificing the high end of rental earnings.
Can you purchase good quality property property in Spain?:- Yes. Remember, many bought off plan at a much cheaper price and can now sell fairly cheaply and still make a profit. I was not one of those, I regret to say. But, buy off plan is risky, what you are buying can change at any time before the building work is completed (a little secret you heard here first and probably the best advice you'll get).
Do I wish we hadn't bought?:- Yes (especially when I see how much I can rent there in the off season).
Will we try to sell within 12 months?:- No. But, perhaps in the near future?
Will we continue to use Spain for holidays?:- Yes.
Summary:- If we hadn't bought in Spain we would have invested in well known investments and would have lost much, much more. There were worse investments than Spanish property, you know . . .
I owned a mobile home in Brittas Bay back in the 90's. It was expensive to keep.It’s an interesting question. I’m also wary of tying myself to one place and feeling ‘annoyed’ if I’m somewhere else whilst I’ve bricks and mortar costing me money.
On the one hand, you mightn’t choose to buy something now but equally you’ve longer to fund it and a greater ability to borrow.