Key Post Investing in Spain?

Singer

Registered User
Messages
13
I wont be retiring. Just getting out of a high risk over-regulated Irish investment and investing elsewhere.
 

cremeegg

Frequent Poster
Messages
3,026
I agree.
We actually have a cheap tracker, but have decided that even with that it is not worth it anymore.
We are out now because of these new rules and the potential for more shocks to come without notice, which could end up trapping us.
We have examined our options and have decided to sell and invest in a rental in Spain. We can sell the property here and with the equity buy a nice apartment in Spain.
We can do short term lets via an agency and then stay in it in the downtime and still make more money than you could in Ireland now.
Plus the most important aspect of it is that we retain control of the property at all times.

In short, we are getting out of the Irish investment, before we cant get out of it.
I have a number of rental properties in Ireland. For the reasons you mentioned I would be very interested in researching the possibilities of selling one and reinvesting abroad. Have you any pointers for researching Spain. Also I have a memory that there are difficult legal issues which can arise in Spain as well. Do you have any thoughts.
 

Singer

Registered User
Messages
13
I posted this in a thread about the new renting rules in Ireland.
It doesnt belong here at all.
This is the second post I have posted about my experience and future actions that has been moved from the conversation I posted it to.
Its just a waste of time posting on this website.
 

Leper

Frequent Poster
Messages
878
Buying property to rent abroad (especially in Spain) has been discussed in other threads on AAM. But there is nothing wrong with starting another. For the record we bought a holiday home in Spain twelve years ago as a kind of retirement investment for us. Twelve years ago property prices were racing forward at even a higher rate than in Ireland.

The Bad:- 1. Big dent in your savings or the necessity to remortgage.
2. You could easily buy in the wrong place and have no rental earnings for nine months of the year.
3. You pay for advertising (not cheap) if you are renting yourself.
4. The necessity to have somebody keep an eye on your place is not cheap either.
5. You need somebody to clean the place and hand over keys to new tenants.
6. Maintenance costs are not to be forgotten either - How Much? - How long is a piece of string?
7. In Spain you will be paying Community Fees, Public Electric Fees, Local Tax, the usual utilities and Waste Collection whether you use it or not, The Spanish government will also tax you even if you have no tenants (I kid you not).
8. If your neighbours begrudge you your rentals, you're swimming against the tide. You hope they are renting their place too.
9. You could hand your property over to a real estate agent and lose 20% (at least) of your rentals. 60% is nearer the mark when you do your end-of-season figures.
10. It is easy for you to be ripped off (use your imagination).
11. One bad tenant can ruin you.
12. Have a tenant who is noisy, your neighbours won't complain, they call the policía local. Fortunately the PL have common sense occasionally.
13. I can't see that if you decide to sell you will have anything near a profit even in the distant future.
14. Brexit is not helping either.

The Good:-1. Property prices have never been cheaper in Coastal Spain.
2. Most other holiday home owners who need renters to augment earnings are not great at what they do.


3. The estate agents are not great either at renting, they are mainly interested in sales.
4. You have somewhere when not rented out to shelter from the Irish Winter/Spring.
5. Your grandchildren will love you more.

I've probably raised more questions than answers. If I had my time all over again, I would have purchased another property in Ireland instead.
Feel free to ask me any questions.
 
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