Spanish Property

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I have an opportunity of buying a property in Spain..and I am toying with the idea of selling my investment property here in Ireland so I can be in a better position to buy a better property in Spain. I just do not know if I would be making the best decision - I would lime to know if an investment property in Spain would generate a greater yield and appreciate in value better than the Irish property. We are thinking of buying in Ibiza - on a stretch of beach, which will be developed into a marina in the next three years. Apartments are about €299/350 for a three bed, sea view. Rentals are quite good ffom May to October.
 
need more info:

what would your investment property in Ireland realistically achieve at sale in the current market?

what's the current mortgage outstanding?

what rent are you currently getting on it?

what discount to asking price do you think you could get on the Spanish property?

what rent is achievable on the Spanish property? is that only in season?

I don't like the 'marina in 3 years' story, it sounds dubious as hell.
 
The 'marina in 3 years' story and all it's close cousins has sucked 1000's of Irish investors in to bad financial investments over the last number of years.

Have you done real research on the spanish property?

In addition to Keno_Sabe's questions:
How long have you owned your current investment and would you be liable for capital gains tax if you sold?
Do you manage the property yourself?
 
The rental income with the Irish Investment is 750 pm
The mortgage is €962 pm
Buyers are purchasing same house now for €220,000
No real scope to realse equity
 
The rental income with the Irish Investment is 750 pm
The mortgage is €962 pm
Buyers are purchasing same house now for €220,000
No real scope to realse equity as had to remortgage to acquire existing residential home, as I had another house at the time and was nearly at maximum borrrowing. I would not make any profit on it if I were to sell now. If we went for the Ibiza option my husband and I would be joint owners, whereas I own the irish investment property at moment.
We both earn really good salaries.
Rental income in Ibiza is for 3 bed - May €900 pw, June €1000 pw, July and Aug €1500 per week, Sept €1000, and October €900.
Many owners go through Ownersdirect website, you book and deal only with the owner, no commission to pay etc
 
Are you not aware that the Spanish property is suffering a crisis at the moment with about 900,000 new propertes that remain unsold with prices plummeting? Also, it is almost impossible to sell second hand properties in Spain at the moment. Anyone who decides to invest there now would be mad.

It is very hard to tell which country will have the biggest price falls, Ireland or Spain. You could be jumping from the frying pan into the fire.

If you had any equity in your Irish investment property would probably be better off selling it (if you could!) and putting your money into a bank like Northern Rock where deposits are now 100% guaranteed. If you did this at least your capital will be safe, rather than depreciating!
 
If you can get a property at a greatly reduced price, greatly...then it would be a good move as this area is guaranteed rental from May - October. I have emailed someone in England ( I rented off him this year..600+ apartment, bought three years ago for 275 ) and have emailed him the pics, so as to get his opinion as well. My investment here is not making me any money and I think any houses purchased since 1999/2000 have had their burst in growth ??
 
Rents are almost non existent in most Spanish holiday properties, unless you can get them yourself. By all means buy it if you want a place in the sun, but forget the hype about getting a return off it.
Programmes on TV that show buyers looking at Spanish or other foreign property always have a bit where the presenter (aka the commission-driven middlewoman/man) pushes a reluctant customer over the line by telling them that they can get an income from the property. It's nonsense, don't fall for that crap.
 
I only have my recent experience to go on - the apartment we rented in Aug, was booked solid from May to October, people booked with the owner directly. Ibiza draws huge crowds each year, and if we purahased there it would most definitely not be in San Antonio as that place has given a beautiful island a very bad name !
 
You've gone from 'quite good rental' to guaranteed rental - that's some leap and seemingly based only on your experience of renting one appartment. Also you are currently subsidising your Irish rental property and there is no equity in it. I'm just trying to see how you think you will do better in Spain than Ireland.
 
Hi there,

Don't forget when doing your figures to add in the wealth tax, Suma, and maintenance/management fees if buying in an urbanisation. Although the wealth tax I gather may be axed from January 2009. [broken link removed] is a very good website and informative for anyone with a holiday home in spain or someone contemplating buying one.

Angela59
 
It sounds a bit like you want to hear what you want to believe.

What proof do you have they place has such a strong rental - The testimony of the seller?? That cant possibly be true, as the seller/developer will say mass to sell in the current climate. Dont believe what you are told unless you can independently verify it yourself.

Dont be blinded by what you WANT to believe - Do your homework as there are thousands of apartments and probably a few bargains if you look hard enough. Check everything yourself as everyone thats got anything to do with property has a vested interest.
 
Whatever you do, don't buy new/off plan in Spain in the current climate. You can do an awful lot better by buying secind hand. You'll get a better location, probably fully furnished and airconditioned, for maybe a third less than new. It's actually a very good time to buy in Spain if you need a place for holiday use, but forget the nonsense about rental income.
Put it another way, if you buy a place for say 100 grand less than new, that's 100 grand you don't have to earn in rent.
 
agree great time to buy and agree re second hand
avoid appartments as villas with pools have much better rental potential.
we get year round rentals and are booked next summer already
think with package companies going bust private rentals are boosted.
 
Hi,

I agree with last two post better to buy second hand has you have everything done such as air con etc. Don't necessarily agree with villa versus apartment - depends on location. Some people like convenience to sea, shops restaurants on holidays and are not happy to drive while on holiday in spain so accessability is a key issue also. If you one thing make sure an buy relatively near an airport i.e. no more than 30 mins.

angela59
 
I find the info coming back very useful. I have been researching this since June. Have stayed in Ibiza - the better part of the island four times now and know the area well. Of course I am going to keep going until I find a property that a) has good location, b) offers good rental from May to October, and the most important, that the price is very negotiable. I have a cousin who retired to Alicante ( at 48yrs ! so lucky ) and he says its a great time to buy as there are some bargains to get. I wont be jumping in with two feet just yet though, still looking. The more informed I am the better decisions I make. And I cannot remember who mentioned Holiday Programmes being an influence...but I can assure you they are not, this is purely a decision made as a result of research and I suppose wanting to but at a time thats right.
Thanks again for the informed replies.
 
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