Now is the time?

tigerspill

I bought a foreign home (in the US rather than Spain). I owned it for ten years.
It was a huge amount of work and a fair amount of stress.
You need to decide if it is a holiday home or an investment.

If it is a holiday home and you have a load more savings than 100K, then go for it and enjoy.
If it is an investment - single asset in a single geography - one might argue that is a very high risk investment. Much worse if 100K is all or nearly all your savings.

live_long_and_prosper

I write to you from Spain, having recently retired and I wonder you want to go to all this trouble to live in Spain to avoid the UK winter. Save your 100k and get some interest off it. You can rent a nice modern one bedroom flat on the costa (like we have) for 400€ - at current rates less than £300 per month. Inland is even cheaper. After that you only have utilities and groceries to pay. If you rent carefully many flats have water - sometimes hot water - included. If you don't like the neighbours or barking dogs drive you mad you can up sticks and find somewhere else. I can't tell you how many properties are around here that are for let or sale - but lots. Buying here is imo dead money, you won't sell in a hurry, if at all - don't forget 10% tax on the purchase price - and you can't access parts of your money whenever you want.

We are having a grand time here. Food isn't expensive. We are managing on two thirds the money we need in the UK, and that includes the rent. We could buy but why bother? The euro is low vs sterling and just a few per cent interest off your 100k will pay most if not all of the rent.

Rent for a year and then decide. I think you could have a lot to lose if you buy. Property as an investment - from what I've seen here - no! YMMV

Just my view. Hope it helps.

kangoora

I tend to echo most of the above posters. I've moved around a LOT in my career, 10 changes of location of which luckily most were paid for by company relocation packages.

I'd always recommend renting first (if finances allow it) when moving to a new area before buying. You get to see your new area, warts and all and get a real feel for the best areas and prices that really won't show up on a 2 week visit or via some estate agency/internet house descriptions.

Also, if you decide after 9 months you are sick of sun and sangria then you can just head back home and not have £100k in a potentially unsellable asset gathering dust.

The other option is looking into those 3 month winter holidays some firms offer, taking £5k a year from your £100k will pay for 20 years holidays before any interest - and you can go to a different location/country every time.

J_B

As an owner of property in Cyprus (and England and Wales ) I'm of course biased, but why Spain - they have winter there you know!

Go further south to find a warmer winter, and take heed of all t'other sensible advice on here.

MEM62

Plasticballs wrote: »

But thats the difference....I wasn't buying to let... I'm buying to enjoy and use whenever it suits me.. at a moments notice if I want. Rented apartments offer the same thing for a fraction of the cost. I cant see in the long term how its worse than having the money in the bank doing absolutely nothing while I freeze my nuts off here... Then you have not absorbed the points I made in my earlier port. Cash in the bank means it's still there when you need it I could have it for years and years... I could let it out sometimes to earn a bit extra cash and leave it to my kids eventually.. I'm just saying it sounds good to me...

I have friends that have done it and my girlfriend has family in the same situation. I know many ex-pats living in Spain and, almost without exception, anyone that has bought property in the last 10 years is now regretting it. Buy something and you will not sell it. Your money is gone. Rent and you can still live the dream and hang onto your money. You have the opportunity to take on board the experience of others and avoid the pitfall but it sounds like your mind is made up anyway.

Plasticballs

Thanks to all for the kindly advice.. I have decided to take a step back and think about renting... it's a more sensible approach and gives me a lot more options... so next question is what's the best way to invest the money bearing in mind I have Sant123 accounts and Gov pensioner bonds already?

Gadfium

£400 per month would rent you a 3-bed house with swimming pool, on a long-term let.

http://www.thinkspain.com/spanish-property/2366865

droopsnoot

Plasticballs wrote: »

so next question is what's the best way to invest the money bearing in mind I have Sant123 accounts and Gov pensioner bonds already?

Have a dig around this forum and see what other suggestions are around - there are lots of similar questions and the answer varies massively depending on your specific situation. Also keep in mind the distinction between investing and saving, particularly with regard to how quickly you might want access to the money.