Thoughts appreciated

[sunseeker]

It's been my hope for a few years that when I retire, in about five years, I get myself a holiday home in mont y Mar bajo around calle hollande. I had also intended to get another UK buy to let to boost my pension but new rules mean this is not very attractive. I'll also still have my main UK house.
It's made me think about getting my retirement home early and renting it as a holiday let. Knowing what I pay for a week and what they sell for it seems a good return, allowing for management fees, empty weeks etc. In fact too good to be true. I'm sure I've read, maybe not on here, people say they're lucky to break even. I'm factoring a 70% mortgage in but it still looks good.
I don't intend ever staying there for more than a month even when I retire.
Welcome any thoughts from anyone who's done this. I love gran alacant.

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[Spurs]

I’m sure there are better ways to make money if that’s the aim but if you are thinking buy now at the right price then it may work however in reality you will need a load of work advertising it etc taking bookings arranging cleaning keyholding maintenance wear and tear etc and I suspect you will only let it for 12 weeks a year you also need a certificate from council .

Some things I’ve heard from people who have rented out privately

Huge electric bill as air con on 24 hrs a day
Huge water bill must have left taps running
You have to paint it every year
People damaged it or took things

It’s probably an option but after paying tax etc not sure it’s going to make much money

Why not buy the one in England to rent out via an agent long term ? Then when you retire buy in Spain

[dleafy]

We were close to buying in GA, then the brexit vote happened, which made us stop and think.

We decided to buy an apartment in the UK, which we rent out and brings in £475 per month.
We're now thinking of just long term renting (rather than buying) when we retire. We can choose where to rent at any particular time.

The biggest problem with buying is that we would have a huge outlay, which we wouldn't get back until we sold up....probably near end of life.....when its too late to do anything with it.
I'm guessing that a lot of our renting will be in GA, but it does give us the option of renting in Tenerife etc during the winter.

[sunseeker]

I’m sure there are better ways to make money if that’s the aim but if you are thinking buy now at the right price then it may work however in reality you will need a load of work advertising it etc taking bookings arranging cleaning keyholding maintenance wear and tear etc and I suspect you will only let it for 12 weeks a year you also need a certificate from council .

Some things I’ve heard from people who have rented out privately

Huge electric bill as air con on 24 hrs a day
Huge water bill must have left taps running
You have to paint it every year
People damaged it or took things

It’s probably an option but after paying tax etc not sure it’s going to make much money

Why not buy the one in England to rent out via an agent long term ? Then when you retire buy in Spain

Hi thanks for replying Spurs. Not looking to make a fortune. Would use alicante holiday villas to manage all that. I rent through them and they've always been good. Electric we've always had read on meter and taken from deposit, cleaner we've paid direct arranged by AHV.

Interested you think it would only rent 12 weeks a year. I'd assumed it would rent April to end of September. What months are you thinking would be more realistic?

Do you know approx how much the licence is?

Buying in UK as a second home is now a total waste of time. There's the extra stamp duty on second homes, stress test where monthly rent needs to be 145% of what the mortgage would be if rate 5.5%, (rules out half the country) lack of tax relief on mortgage, new rules on hmo etc.

No idea what costs are related to pool maintenance. Any ideas on that?
 Thanks very much for replying

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[sunseeker]

We were close to buying in GA, then the brexit vote happened, which made us stop and think.

We decided to buy an apartment in the UK, which we rent out and brings in £475 per month.
We're now thinking of just long term renting (rather than buying) when we retire. We can choose where to rent at any particular time.

The biggest problem with buying is that we would have a huge outlay, which we wouldn't get back until we sold up....probably near end of life.....when its too late to do anything with it.
I'm guessing that a lot of our renting will be in GA, but it does give us the option of renting in Tenerife etc during the winter.

I can see where you're coming from. My original plan was to rent there too. Will be interesting to see if prices change post brexit

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[dleafy]

With buying here in the uk, there's always the option to sell and buy abroad. No longer sure we'd do that, but you never say never!

Cheers
Davy !!!

[Spurs]

Sorry I don’t know how much the licence/ certificate and I’m basing the 12 weeks on what I’ve heard from people who have rented out before

It’s usually fairly easy in July Aug and early sept but as soon as kids go back to school the demand goes as well . Also there are a lot of properties for rent around GA and a lot of them are quite cheap to rent so the competition is high

Not sure how Brexit will change holiday patterns will we need visas international driving licences restrictions on what you can carry etc my concern is that a lot of hassle will mean that people will go elsewhere



I don’t think I would do it

[sunseeker]

Thanks for info. As you all say, a lot of uncertainties. Think I'm just so bored with the UK I'm trying to hurry up the process. If not for having adult children in the UK I'd be on the next plane for good

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[John H]

I’ve no idea on the financial aspect of renting a property out in Spain and if it’s a wise investment or not.
To me my home, which is what our house in GA was, wasn’t somewhere I want strangers using!!
When we leave our home in the UK to go on our travels no one moves in behind us.
One of the joys of owning our own house in GA was the ease of going on holiday there....the clothes were in the bedside drawers and wardrobe, the toiletries were in the bathroom, the wine was in the wine rack, the kitchen cabinets were well stocked and it was as easy as opening the door, turning the electric on and buying some fresh produce....if we rented out I couldn’t do that.
Another joy was the neighbours, who became good friends....non of them rented out I’m pleased to say. I have heard the noise and antics that come from folk on holiday....I wouldn’t expect my neighbours to have to tolerate this!!
When we sold our house we had three agents round to give us a valuation and discuss their fees......all three of them said within minutes of entering the property “you can tell that this hasn’t been used as a rental property”.....to me that tells you all you need to know about renting your home out.
Any regrets on selling, it’s only been three months, so far none......we’ve missed the mates, but we’ve seen them all this Summer, other than that no regrets at all.
Davy sums up our views very well, it’s so easy to rent, we never holiday at peak seasons, for little outlay and the world is your oyster.....and I know lots of folk will disagree with me, GA hasn’t got the climate for a winter holidays

Regards all

John


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[Tony Gillam]

We rented ours out for the first six years or so when we first had it. The best I got was 16 weeks, so 12 weeks would be a good average. It certainly wouldn't cover mortgage costs. After increased operating costs, it will only ever give you a modest return. It just about covered the cost of a couple of flights a year and provided our spending money whilst in GA, so it isn't going to make you rich. Economically, buy to let in the UK is likely to give a better return. There's always demand for them in university towns.

[Alicante Holiday Villas]

Sunseeker

If you would like an honest opinion of rental potential, best place to buy, rental returns, licences, legalities etc then please contact us!

[SueB]

Have just read that the Santa Pola town hall is now taking over the issuing of licences for renting out properties as holiday lets. The property has to meet certain conditions and they will be issuing fines of up to 600,000 euros to those who are not registered.

https://www.diarioinformacion.com/baix-vinalopo/2018/09/13/santa-pola-asumira-regulacion-alquileres/2062127.html

Sue

[Alicante Holiday Villas]

The Valencian Tourist Authority is responsible for issuing Tourist Licences, which has been law since 2015. Applications submitted from 9th July this year have had to have an extra document attached to the application called Certificado Compatibilidad Urbanistica. This document is issued by the Town Hall with a tax of 52 Euros to pay.

[kevinb]

Suspect that buying in Spain is a poor investment full stop, had my house in Monte Y Mar for fourteen years and would just break even if I sold now, don't think there is much profit in renting as a holiday let especially if you use an agency. The UK is a better prospect, I have two properties I rent out and manage and maintain myself, its quite a commitment but provides a good income and hopefully in the longer term some capital appreciation, done quite well by buying in an area where there has been a good increase in prices over the last four years. I have heard that long term tenancy in Spain can be fraught with problems if you need to get rid of a tenant who doesn't pay up if they are old or I'll. I will continue with my houses in the UK but wont commit any more money to Spain.

[NickiH]

We bought 16 years ago paid around £40k. We have had many lovely holidays and so have our families. We rented for the  first 5 years but that was so troublesome we stopped that. Property value is now around £85k so we consider it was a good buy at the time. It doesn’t owe us anything as we have had 3-4 holidays a year there. Guess we bought st the right time.  When we come to sell if we make a profit all will be good. Definitely no regrets but certainly wouldn’t go down the rental route again