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Buying first house (abroad).
NullDrone
Posts: 44 Forumite
Basically I'll go over my situation, I am 21 years old and have a bit of money saved (8.4K), but seeing as this money is not doing anything for me except losing it's value, I want to buy a house abroad, I do rent a place in south England which is cheap compared to the average rent price for my area.
Basically I would like to invest in a property in spain and I'm going to ask my mum if she can help me with funds to the property, the more I can pay off at first, the better off I will be. I've read this book called "HOLD: how to find, buy and rent houses for wealth" by gary keller.
Now It recommends in the book that I am to look for a repossessed house, not to buy the first one but to continue looking until I find a very good investment, searching for a duplex that has high rent prices but low house costs, now as I know that many brits go abroad to spain, the amount they pay for holidays is quite expensive compared to just average rent, but you look at the properties in the area to see what other are charging in rent.
My question is: what locations in spain will be expensive to rent and commonly rented? brits usually go once a year for one or two weeks, I can imagine I wouldn't get a constant flow of cash, which is bad seeing as cash flow is king. I would look for permanent tenants seeing as they'll keep the cash flow coming in, this would be better than just renting it out to people looking for a holiday right? I want to get the most money in as possible for rent but keep the house price low (under £100,000), I'm nervous to do this though.
Also, do you think spain is better than buying a place in the UK? House prices in the UK are damn expensive, I want to keep the risk lower and have something that I can pay off quicker, money going out in mortgage interest would accumulate a lot of money. Is their anything to consider when buying in spain? I have a feeling this is too good to be true, the spanish housing market is cheap and the houses are so much nicer than UK.
And another thing, where would I find repossessed homes? Supposedly these are much cheaper than the average house, they can if you look around long get you a really good deal, but where would I search for them? Ultimately the quality of the deal I get relies on how long and hard I search, the closer to the sea the better. It's like warren buffett with the stock market, he said that every now and then you'd find a weirdly good deal, he took it and made loads of money.
Is there any kind of advice anyone can give me? Is my plan good?
Basically I would like to invest in a property in spain and I'm going to ask my mum if she can help me with funds to the property, the more I can pay off at first, the better off I will be. I've read this book called "HOLD: how to find, buy and rent houses for wealth" by gary keller.
Now It recommends in the book that I am to look for a repossessed house, not to buy the first one but to continue looking until I find a very good investment, searching for a duplex that has high rent prices but low house costs, now as I know that many brits go abroad to spain, the amount they pay for holidays is quite expensive compared to just average rent, but you look at the properties in the area to see what other are charging in rent.
My question is: what locations in spain will be expensive to rent and commonly rented? brits usually go once a year for one or two weeks, I can imagine I wouldn't get a constant flow of cash, which is bad seeing as cash flow is king. I would look for permanent tenants seeing as they'll keep the cash flow coming in, this would be better than just renting it out to people looking for a holiday right? I want to get the most money in as possible for rent but keep the house price low (under £100,000), I'm nervous to do this though.
Also, do you think spain is better than buying a place in the UK? House prices in the UK are damn expensive, I want to keep the risk lower and have something that I can pay off quicker, money going out in mortgage interest would accumulate a lot of money. Is their anything to consider when buying in spain? I have a feeling this is too good to be true, the spanish housing market is cheap and the houses are so much nicer than UK.
And another thing, where would I find repossessed homes? Supposedly these are much cheaper than the average house, they can if you look around long get you a really good deal, but where would I search for them? Ultimately the quality of the deal I get relies on how long and hard I search, the closer to the sea the better. It's like warren buffett with the stock market, he said that every now and then you'd find a weirdly good deal, he took it and made loads of money.
Is there any kind of advice anyone can give me? Is my plan good?
0
Comments
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The one good thing is that the market in Spain has I think bit rock bottom... It's slowly increasing, well more realistically things are slowly starting to sell...
I've lived here two years and we are returning to the uk but I am considering a purchase - there are a lot of risks.
Properties can have associated debts. Some may not have full planning. They sit on the market years as many won't/can't lower prices. Standard charges for water & electric & broadband are much higher.
It's a very overloaded market IMO. We have easily picked up holiday rentals at the last minute the last two Easters & Julys.0 -
questionss wrote: »The one good thing is that the market in Spain has I think bit rock bottom... It's slowly increasing, well more realistically things are slowly starting to sell...
I've lived here two years and we are returning to the uk but I am considering a purchase - there are a lot of risks.
Properties can have associated debts. Some may not have full planning. They sit on the market years as many won't/can't lower prices. Standard charges for water & electric & broadband are much higher.
It's a very overloaded market IMO. We have easily picked up holiday rentals at the last minute the last two Easters & Julys.
So would you say spain was the best country to buy in? And what area in spain do you think is the best to look at in terms of rent/house price ratio?0 -
No I don't think Spain is the best, and I don't know where would be - but I am buying for us rather than an investment. I want a true second home to help my kids keep the Spanish they've learnt.
In terms of rental/yield etc I've no idea - costa del sol west of Malaga or I. The costa blanca - just make sure you find a good lawyer to help with legalities/paperwork.
There is a (relatively new) citizens advice bureau - Spain website & Facebook which would be worth looking through etc
There is a link on there somewhere about bank owned properties for sale (repos)0
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