Buying a property to rent, using a mortgage

CLN

I have recently moved to Spain, and will soon sell my home in the UK to purchase a new home for myself here. However I will have around £100,000 left over that I would like to invest, so am thinking to invest it in a 2nd property here in Spain.

My idea is to buy a property for around £300,000, using some type of mortgage or similar loan, and then rent it out and pay back the loan with the rent I get from the property over 8-10 years.

The only thing is I have little to no regular income at the moment, also I assume I would need to take the loan from a Spanish bank, which may also add complications, especially as I have only just arrived here.

I know most people on here won't know how the Spanish banking system works and I will research a lot about that later, but generally speaking.... How realistic is my plan? And what problems might I likely run into?

foxy-stoat

No different if you wanted to do the same in the UK apart from the added risk of unknowns in Spain.

No income = no mortgage.
Research becoming a Landlord, anything different to Spanish regulations.
Have you research the rental market.
What happens when you sell, CGT?

csgohan4

you may need long term health insurance with the brexit coming

CLN

foxy-stoat wrote: »

No different if you wanted to do the same in the UK apart from the added risk of unknowns in Spain.

No income = no mortgage.
Research becoming a Landlord, anything different to Spanish regulations.
Have you research the rental market.
What happens when you sell, CGT?

csgohan4 wrote: »

you may need long term health insurance with the brexit coming

Thanks for the replies. From what I know so far there are both pros and cons to buying to let in Spain, in terms of laws and taxes, but I will need to do A LOT of research on this before taking any action.

As for Brexit I am not too worried as the Spanish government has said even in a no deal situation they intend to continue the rights of UK citizens living here, including healthcare. Of course nothing is 100% certain yet but I expect it will be by the time I am at a point of no return, and in the case where I did lose my residential rights purchasing property worth over 250,000 euros is actually a way to regain them.

Right now my biggest concern is whether of not I will actually be able to get the mortgage, or if I even have a chance. I don't want to spend 100s of hours researching the laws and systems in Spain only to find out the entire thing is impossible

When you say "No income = no mortgage.", well the rent from the property would be my income (apart from my very small pension income). I understand some banks may not consider this the most stable of incomes as tenants don't always pay rent on time, or properties can sometimes be left empty if not properly managed although I don't expect to have any problems with either of these issues. The person who I intend to manage the property will live in the property, and will be renting out rooms individually (likely around 4-5 rooms in total, which is quite common in Spain). So the risk of all rooms being empty or unpaid for is very low, but I am not sure how to prove such things like this to a bank. To be honest it sounds more like a business loan than a mortgage, but I'm really not sure what my options are.

Of course I know the only way is to go to some banks and find out what is possible, but first I want to educate myself a little to know what to expect