# Advice on buy to rent



## westway1968 (Apr 13, 2014)

Hi there everybody

I am looking for some advice on buy to rent in Spain, I am currently looking at purchasing a property in England but due to my personal situation I wont pay the mortgage off until I'm about 67

I have quite a large deposit and I could afford to buy a property outright in Spain and then try to rent it out, I've read some info on rental terms in Spain and I'm looking more towards long term rents rather than holiday letting.

I'm getting some info on a property in Antas, Almeria so if anyone knows the area it would be great to hear from you

If anyone one has any advice at all it would really be appreciated

Thanks


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## Horlics (Sep 27, 2011)

Hi,

I wasn't sure whether to post as it seems you are looking for advice on the area. That said, you have mentioned circumstances around the purchase of a UK property, mortgage, etc. and then said any advice at all, so I will respond. I hope this isn't going into opinion you didn't want.

Firstly, I am not one of those who is totally sceptical about Spain, I am in the process of buying a property there as I type.

I am not sure I would do the same in your situation, however. 

I see that you are looking at renting long term, in which case you won't be able to stay in it yourself. It's therefore not a lifestyle purchase, by which I mean, you're not looking to change your place of residence and seeking to be in Spain, at least not in the near term.

Rental is about 2 things, the rental yield and capital growth. Yield may be OK but I wouldn't expect capital growth in Spain to be what it could be in the UK. The market here is turning up and most forecasts suggest growth nationwide for the next couple of years at least. I happen to think that the BoE upping the interest rates a notch or two could bring it to a halt, but Brits' obsession with property never seems to go away, so even then the inflation might continue.

Assume that the yield in the UK and Spain will be the same, and that capital growth in the UK is double that of Spain (I happen to think UK growth in property prices will be more than double Spain's rate). Now factor in the purchase costs in Spain, i.e. 10% plus another 1.5/2% in other service charges, and a 10 year comparison of owning a let in the UK vs. Spain leans heavily to the UK being the better bet. 

Add to that the difficulty of dealing with a rental property at distance and the costs involved. If your buy-to-let was in the UK you might have the option of managing it yourself, whereas in Spain you're almost certainly going to have to put it in the hands of a management company. 

It all depends on your reasons, but this is not the route to take if financial gain is why you're doing this.




westway1968 said:


> Hi there everybody
> 
> I am looking for some advice on buy to rent in Spain, I am currently looking at purchasing a property in England but due to my personal situation I wont pay the mortgage off until I'm about 67
> 
> ...


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## mrypg9 (Apr 26, 2008)

I have been a landlord in the UK and Canada. No way would I be a landlord in Spain. 
We sold our UK properties and rent here. If we said we were moving out, our landlord would surely lie in front of the Pickfords lorry.
We are the first tenants to pay the rent, not only regularly but in advance, the only tenants who have looked after the property and we succeeded in reducing the original rent of five years ago by more than €1000 a month, such are we valued as good tenants. 
There are a lot of stories, true stories, about awful landlords. In Spain there are as many if not more tenants from hell.


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## westway1968 (Apr 13, 2014)

Thanks for the reply

My reasons as you say are long term, hopefully with a view to moving to Spain but this could be in another 15 years or more. Its more of a retirement option. The property I'm on the verge of purchasing in the UK would be for me to live in. I dont think by the time I do retire i would be able to afford a place out there. Maybe my heads been turned by the very cheap property market in Spain compared to the UK, owning a property without a mortgage is obviously more appealing than having a 20 years mortgage

I've read some horror stories about tenants in Spain and that the law is very much in favour of the tenant


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## mrypg9 (Apr 26, 2008)

westway1968 said:


> Thanks for the reply
> 
> My reasons as you say are long term, hopefully with a view to moving to Spain but this could be in another 15 years or more. Its more of a retirement option. The property I'm on the verge of purchasing in the UK would be for me to live in. I dont think by the time I do retire i would be able to afford a place out there. Maybe my heads been turned by the very cheap property market in Spain compared to the UK, owning a property without a mortgage is obviously more appealing than having a 20 years mortgage
> 
> I've read some horror stories about tenants in Spain and that the law is very much in favour of the tenant


A lot of cheap property here is cheap for a reason.
Caveat emptor applies as much in Spain as in the UK, perhaps more so.


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## Alcalaina (Aug 6, 2010)

Yes, the law protects long-term tenants in Spain.

But if you buy somewhere in a popular location you should consider holiday lets, managed by a local agent. You could come over off-season and have some nice holidays yourself. Just be prepared to have it completely refurbished when you do finally move in!


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## mrypg9 (Apr 26, 2008)

Alcalaina said:


> Yes, the law protects long-term tenants in Spain.
> 
> But if you buy somewhere in a popular location you should consider holiday lets, managed by a local agent. You could come over off-season and have some nice holidays yourself. Just be prepared to have it completely refurbished when you do finally move in!


Yep. As a tenant I am delighted with the rental laws here. But I would be deterred from being a landlord because of them. It's difficult to get rid of short- term tenants without incurring a lot of expense and hassle.

Plus...isn't there a new and very restrictive law affecting holiday lets?


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## Alcalaina (Aug 6, 2010)

mrypg9 said:


> Yep. As a tenant I am delighted with the rental laws here. But I would be deterred from being a landlord because of them. It's difficult to get rid of short- term tenants without incurring a lot of expense and hassle.
> 
> Plus...isn't there a new and very restrictive law affecting holiday lets?


No, despite what the Olive Press _et al_ reported. Though in some regions e.g. Canaries it is hard to get a licence.

Dispelling the myths about holiday rental licences in Spain


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## mrypg9 (Apr 26, 2008)

Alcalaina said:


> No, despite what the Olive Press _et al_ reported. Though in some regions e.g. Canaries it is hard to get a licence.
> 
> Dispelling the myths about holiday rental licences in Spain


Ahh..but there is now a requirement for holiday lets to be licensed, which must be good news.


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## snikpoh (Nov 19, 2007)

mrypg9 said:


> Ahh..but there is now a requirement for holiday lets to be licensed, which must be good news.


... there always has been !


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## Horlics (Sep 27, 2011)

A question, if I may.

Is your situation that if you buy in Spain, you won't buy in the UK because you'll have used the deposit for the Spanish purchase? And you'll then be renting a home in the UK while letting the one in Spain?



westway1968 said:


> Thanks for the reply
> 
> My reasons as you say are long term, hopefully with a view to moving to Spain but this could be in another 15 years or more. Its more of a retirement option. The property I'm on the verge of purchasing in the UK would be for me to live in. I dont think by the time I do retire i would be able to afford a place out there. Maybe my heads been turned by the very cheap property market in Spain compared to the UK, owning a property without a mortgage is obviously more appealing than having a 20 years mortgage
> 
> I've read some horror stories about tenants in Spain and that the law is very much in favour of the tenant


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## Roy C (Sep 29, 2012)

Does he not mean he is going to buy in both the UK and Spain, to take advantage of the collapse in the Spanish housing market before the Spanish market recovers and he won't be able to buy in both countries. Although I think it will be a long time before the market recovers in Spain.


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## Horlics (Sep 27, 2011)

Roy C said:


> Does he not mean he is going to buy in both the UK and Spain, to take advantage of the collapse in the Spanish housing market before the Spanish market recovers and he won't be able to buy in both countries. Although I think it will be a long time before the market recovers in Spain.


I don't know Roy, that's why I am asking for clarification.


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## Roy C (Sep 29, 2012)

Horlics said:


> I don't know Roy, that's why I am asking for clarification.


Fair enough Horlics, I might have read it completely wrong anyhow. Also in my case wishful thinking on the house prices as I want to buy next year.


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