Living abroad tips and hints for money savers

droopsnout

EdInvestor wrote: »

I suppose the rise in the Euro will be reducing the impact of the fall in house prices though (in sterling terms)?

True. But only of consolation if one's property is being sold. I have no intention of selling, though the truth is that if the exchange rate worsens any more, I won't be the only one starting to feel sweat on my brow.

Of course, many Brits living abroad can now no longer afford to buy a property back in the UK, where house prices have increased faster than in continental Europe.

So there will be some who can't afford to continue to live in Europe, but can't afford to move back to the UK. (Unless they downsize or downgrade considerably, of course - or even try for a council house).

seven-day-weekend

droopsnout wrote: »

True. But only of consolation if one's property is being sold. I have no intention of selling, though the truth is that if the exchange rate worsens any more, I won't be the only one starting to feel sweat on my brow.

Of course, many Brits living abroad can now no longer afford to buy a property back in the UK, where house prices have increased faster than in continental Europe.

So there will be some who can't afford to continue to live in Europe, but can't afford to move back to the UK. (Unless they downsize or downgrade considerably, of course - or even try for a council house).

We already know people in that position - sold a UK house and come out here to live on capital for the next ten years until their pensions kick in.

What they are finding is that the capital is not lasting ten years, not just because of the exchange rate but because of the overall rise of cost of living and they themselves not budgeting correctly.

I'm glad to say we kept our house in the UK and the one here in Spain, even with the fall in house prices, will show a healthy profit when we come to sell and not being an apartment on the coast should sell relatively quickly.

We're in a much better position that many.

donny-gal

I think there is often a case of the "grass is greener" theory, people thinking they will be better off back in the UK, still comparing costs from when they left, and not realising they they have escalated here even more so. We have a house in both places too, and now just retired still flitting between them not deciding to make the plunge to total Spain yet, no desire to sell either (but there is a healthy profit still even at my late buying stage, people buying 6 months to a year/s earlier would have an even healthier one. TBH I still found the 2 months I spent over Jan/Feb far cheaper than the UK, even though I can see how prices have risen in the 5 years we have had the place. If they bothered to read many of the threads here, they would see how people are having to be inventive to stay solvant. They cannot go out most nights, buy a bottle of plonk (won't insult it and call it wine) for 50p. Get good fresh cheap F&V on regular markets. The food is still cheaper than the UK by quite a lot if they shop wisely, even with the considered euro exchange rate, and still far fresher and tastier.
Maybe many should spend a short break in the UK, before they think that selling up and re-locating back is a solution.

Where is the SKI-ers Club - certainly should be a member of that:rotfl: :rotfl: :rotfl:
DG

droopsnout

seven-day-weekend wrote: »

We already know people in that position - sold a UK house and come out here to live on capital for the next ten years until their pensions kick in.

What they are finding is that the capital is not lasting ten years, not just because of the exchange rate but because of the overall rise of cost of living and they themselves not budgeting correctly.

I'm glad to say we kept our house in the UK and the one here in Spain, even with the fall in house prices, will show a healthy profit when we come to sell and not being an apartment on the coast should sell relatively quickly.

We're in a much better position that many.

Yes, indeed. People's failure to plan is very worrying. I partly blame the many TV programmes depicting some kind of Utopia, but in the end it really is down to people to do their research thoroughly and plan and budget accordingly.

In the example you quote, of course, people perhaps have budgeted for the capital they have/had, and the pension they'll receive, but to find that a pension of (say) a predicted £1000 month is going to be worth an effective £730 is going to exacerbate the problem of families finding it doesn't work out.

We, too, have a property in both France and the UK, and wouldn't change this for anything. To give up one's foothold in the UK is a very dangerous thing to do.

I don't intend to sell our current house in France until it starts to become too big for us to clean and maintain. But in the current state of the market, I would not expect a quick sale.

Properties here in the countryside can be on sale for well over a year. We know one lady who went back to the UK almost three years ago, and her French property has still not sold.

When we do sell, there is no intention of moving back to the UK. However, if I were to die, my wife may well wish to return to be closer to family.

droopsnout

donny-gal wrote: »

I think there is often a case of the "grass is greener" theory, people thinking they will be better off back in the UK, still comparing costs from when they left, and not realising they they have escalated here even more so.

Having just had a couple of weeks in the UK, I agree that prices have been rising.

Living in a rural area in a country like France, though, gives rise to differences in comparisons. For instance, reliance upon the car is all the greater. Our nearest shop is five miles away. Yes, we have obviously adopted a different way of shopping, going out twice a week at the most for fresh foods. But the price of fuel has increased around 35% in the last five years.

Prices here are shooting up, and it is the main concern of most French households, apparently. "Le pouvoir d'achat" ("buying power") is constantly in the headlines, and the subject of many a political speech. As everywhere else, some prices have rocketed: milk which cost 0,76€ two years ago is now 1,22€, for example.

donny-gal wrote: »

I still found the 2 months I spent over Jan/Feb far cheaper than the UK

I don't think that applies with regard to France. It is not cheap to live here. My relatives always comment that fruit and veg are more expensive here. Clothes and shoes are vastly more expensive in France. Price maintenance still operates here (discounting on books is not allowed beyond 5%); selling at below cost price as supermarkets do in the UK on certain loss leaders is illegal.

donny-gal wrote: »

If they bothered to read many of the threads here, they would see how people are having to be inventive to stay solvant. They cannot go out most nights, buy a bottle of plonk (won't insult it and call it wine) for 50p.

Can't get quite such cheap plonk here, but, yes, we have cut down on wine drinking, expenditure on the garden, odd lunches out (never have gone out in the evening), spending on personal luxuries, clothes, shoes, confectionery, telephone ... Everything that can be pared, has been.

donny-gal wrote: »

Get good fresh cheap F&V on regular markets. The food is still cheaper than the UK by quite a lot if they shop wisely, even with the considered euro exchange rate, and still far fresher and tastier.

Fresh fruit and veg are much cheaper here in the shops than on the market - even though most of it is grown in local fields! Much cheaper in Lidl, where much of the produce is actually - very sadly - of better quality, too. In fact, our weekly trip to the local market, which we did as much for the colour and atmosphere as for the shopping, and to have a coffee with our local buddy, has now been sacrificed as a cost-cutting measure.

donny-gal wrote: »

Maybe many should spend a short break in the UK, before they think that selling up and re-locating back is a solution.

I just did. Moving back to the UK is not a solution for us. Most of England is too crowded, too noisy, too busy with traffic, too dirty, too impolite, too disrespectful, too "in your face" for us to feel comfortable now. I suppose we could get used to it again, if we really had to, but it's not currently an option.

donny-gal

I would agree that France has always been more expensive than Spain, which is where I was commenting on.

I will be in France/Belgium/Holland over the next few weeks in our caravan, so will maybe add comments re those areas after I get home.

Regards
DG

droopsnout

That will be interesting. Have a good time!

P.S. My recent stay in the UK was in Hatfield, near Doncaster.

donny-gal

droopsnout wrote: »

That will be interesting. Have a good time!

P.S. My recent stay in the UK was in Hatfield, near Doncaster.

So now you know why I am happy to be out and about!
DG

seven-day-weekend

Our ideal would be to spend several months a year in both countries to get the best of the weather in both countries. We'd also like to travel within the UK and Europe.

However, we can't begin to do this until I get my State Pension in January 2010 as we do not have enough income to live in the UK. The trravelling money will come mainly from savings (note my signature - SKI-ing!).

Even then we will have to share the UK house with our son and probably his girlfriend, to get some income from them. (He lives there at the moment, with two lodgers).

Or try to get a job with 'benidorm leave' :rotfl:

The Spanish house will be available for rent in the months we are not there, but it does not matter if it does not rent, although we would like it to 'pay it's way' like the English one does at the moment.

If we find we are not visiting our Spanish house enough, we will sell it.

droopsnout

Lost me here - what's the SKI-ers club, then?

Sounds like you've got it sussed, S-D-W! Our UK property is currently lived in by my Mum - rent-free! Seems a good deal to have it looked after at no charge. She's 84 and in the pink! In fact, she came back with us here for 18 days at the end of our UK visit.

I suppose the time will come, sadly,when she is no longer there. We haven't decided exactly what to do with the house at that stage, but will probably rent it out, I suppose. That would make a huge difference to our income!

But I don't envisage me ever returning to the UK to live, permanently or semi-permanently. Obviously, I'd go back if our rellies need help, nursing, etc., but that would be temporary.