[scottish]

Hi there,

I’d like to make some investment for the next years and looking for some advices. Here’s my plan:

I live in Scotland at the moment and I’m planning to live here for the next 1-2 years. After that, I’m planning to move to Barcelona and live there with no plan of coming back to Scotland. Since I got some savings I’m thinking to:

1. buy asap a 2 bedroom to live (residential mortgage, interest only) to stop “wasting” money in renting
2. then convert to buy to let (with proper consent to let) when moving to Spain, getting a monthly gross income of ~£1k (estimation based on the areas I want to buy)
3. after 6 months of renting in Barcelona (useful time to study the city), buy a flat to live in
4. one year from that, buy a third property either in Barcelona o somewhere in Spain to buy to let

Questions:
– Considering that my savings will be used almost entirely for the first property and then it’s all based on my salary + some income from the 1st property, do you see this as a suitable plan?
– Or would you suggest to keep renting in Scotland for the next year and keep my money for when I move to Barcelona to buy there the 1st property?
– Considering mine is a decent salary (£55k), do you see any issues in getting mortgages for the 3 properties?

Other questions:
– is it possible to start a buy to let mortgage in Barcelona as first time buyer, or do I need to be already a property owner?
– if I’m a property owner in the UK, can this represent an advantage in buying a buy to let property in Barcelona, in terms of getting a mortgage?
– what’s the % of deposit required for a buy to let in Barcelona?

I’m a bit struggling to understand what’s the best move, if buying immediately having the almost certainty I’ll have a good passive income for the next years or start my real estate plan directly in Spain.

Thanks in advance for your answers.

[scottish]

anyone there willing to answer my questions? 🙂

[jp1]

Probably because, it’s an impossible question to answer and naivety on your part, in mapping the UK housing/renting market onto a completely different one makes it even more so.

Firstly £55k is not a lot of money when considering buying three properties.

I am not sure the concept of buy to let exists in Spain, you only have to look at the threads on rental licences to see that vested interests try to prevent any competition to hotels, even though you would consider you are not competing with them.

Of my Spanish family (in Spain) that have rented property and business property in all cases the tenants have failed to pay, on average it has taken over two years to get them out. All the while with water and electricity unable to be disconnected, and eventually those debts falling on the property.

Renting out property in Spain is highly dangerous to your wealth.

But good luck

• This reply was modified 7 years, 10 months ago by jp1.

[marios]

And if you plan getting a mortgage in Spain they will probably insist on 50% equity.

[Larquia]

I have three properties in Madrid and I am letting them out and I do also own properties in the UK, so I think I am fair when comparing both markets. In Spain tenants tend to remain at the property for longer periods of time than in the UK (several years versus a couple), however it is harder to obtain reliable credit references, therefore, the risk of default. The legal situation in Spain has now improved and therefore it is easier to kick the tenants out, like in the UK, it can take you several months, but it is possible. You can also get non-payment insurance.
Larquia, my buyer’s broker company, have looked at mortgages and this is not a type of mortgage popular in Spain. You must remember that the non-holidays rental market in Spain is something relatively new industry.
In Spain, people usually do not rent, but own.
At Larquia we specialise in property investment in Spain. We are a buyer’s broker and I feel we can help you to address your concerns.
Regards,
Clara

[Author]

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