Buying in Spain?

rizla01

Would you?

A mate of mine is going ahead with a purchase of a property near Alicante, which has a business with a good return relying on The Ex-pat market and also comes with one lettable apptmnt.

I just wondered if he is right.

Ex-pats are getting old now and are trying to come back to take advantage of our free NHS service plus Spain is on the brink of going bust.

Consequently property can be got for very silly prices.

Would you see this as a gamble and would you invest £100k in Spain?

annie1975_2

Personally NO i wouldnt. Spain is on its knees.

CLAPTON

would need a tiny bit more info
nature of the business
turnover
gross profit
letting property turnover and profit

etc etc

PasturesNew

What does he know of the language? Of the tourism business? Of any business? Of the lettings business? Of marketing?

And - what is his Exit Strategy?

angelsmomma

I am thinking of buying in Spain but only because it is so cheap just now. I would be living there around 6 months of every year and not planning on letting it out when I am not there.

I home educate my son and have lodgers in my home so can't see any problems with my plan as the home bills would be covered while I am away and the spanish costs would be around what I would spend if at home.

I am not planning on spending £100,000 though but around £50,000

CLAPTON

angelsmomma wrote: »

I am thinking of buying in Spain but only because it is so cheap just now. I would be living there around 6 months of every year and not planning on letting it out when I am not there.

I home educate my son and have lodgers in my home so can't see any problems with my plan as the home bills would be covered while I am away and the spanish costs would be around what I would spend if at home.

it will probably be cheaper in 6 months time.

angelsmomma

Thanks Clapton, I am not in any rush just now so will keep an eye on property prices in the next 6 months and of course this site to see how the wind blows.

rizla01

CLAPTON wrote: »

would need a tiny bit more info
nature of the business
turnover
gross profit
letting property turnover and profit

etc etc

The revenue looks sound enough but not enough to make millions - just a comfortable way of life.

The business is housing Ex-pats pets when they travel home or for any other reason. Each pet pays 8 Euro per night and there are 30 odd cages.

As I said. looks OK but with the economy being as unpredictable, I would worry PLUS might the Government start imposing even more taxes on the new builds or demolish homes that they decide to for some spurious reason?

I don't fully trust OUR Government but the SPANISH GOVERNMENT???

Jegersmart

From my point of view I would consider that many Spanish banks are technically insolvent and it may only be a matter of time before distressed assets become even cheaper. Having said that, the time to buy is usually when the situation *is* dire - but in this case I speculate that the times will become much harder in Spain. I was in Gran Canaria in March and although property is moving, most building projects are shut down and lying dormant and owners looking to sell still in denial stage and holding out for better prices. I am not saying that GC is a representative picture of Spain as a whole though!:)

Personally I would consider it and keeping an eye but as I would only be doing it from an investment angle in my view it is a bit too early to move right now. If relying on letting yield, it may be wise to consider that if Spain gets a lot worse - which at this point seems likely - I am not sure what that will do to the letting market....?

Tread carefully and good luck.

all imho

J