Hi bradyeme, as yourself, I’m a resident here in Barcelona and would support and add to the views of Mark but also agree with Angie, regarding the UK property.
With regards to the UK, it depends on the location. If it’s London, then obviously I would advise against selling. One advantage UK property has over Barcelona property is the liquidity of the asset. UK property is relatively fluid, in terms of selling quickly. A Barcelona apartment purchased in 2014 may only realise it’s initial outlay, a number of years after the purchase. As you pay such a high purchase tax (10%). It also takes longer to sell Bcn property because of the depressed market. As it sounds like you are settling down here and looking to the long term, you’ve obviously taken this into account.
One other factor if you are viewing this property as an investment, you need to consider the CGT on any future sale. If you buy at one price but then spend a lot of money on renovating, the property may be worth 1000 or 1500pm2 euro more, however the taxable sale figure will still be the original purchase price. And you will pay CGT on any profit or difference from that original price. You may also want to consider a way to get the IVA back on the renovations. (10% IVA on your primary residence and 21% on investment properties).
Regarding Barcelona, one factor the crisis won’t change is it’s geographical location. It will always be a cultural, vibrant, Mediterranean city, which to my understanding seems to have weathered the worst of the storm. With prices now bottoming out and even rising slightly in some areas, I think it’s a good time to buy.
What you’ll achieve is a perfectly renovated home for market value, which may or may not rise substantially, however you will have had years of enjoyment living in a fantastic city. I think people in general sometimes make the mistake of viewing their home like a profit making business without thinking about the years of happiness and stability it has provided.
(I’ve written a few blogs on my experiences of purchasing property here in Barcelona, if you’d like the links send me a DM). Hope that helps!