Rent, Rent,Rent - General property discussion in Águilas - Águilas forum - Costa Cálida forum in the Murcia province of Spain
ASSSA Insurance
Jennifer Cunningham Insurances SL
Los Alcazares car repair  service

Join the Águilas forum

Join the Águilas forumMy name's Alex and this is my website all about Águilas in Spain. Register now for free to talk about General property discussion in Águilas and much more!

Rent, Rent,Rent

Posted: Wed Jan 19, 2022 12:48pm
16 replies692 views10 members subscribed
CB18

Posts: 29

22 helpful points

Location: Águilas

Joined: 15 Jan 2016

Having been in Spain now over 5 years my advice to anyone wanting to come and live here is rent a property do not buy. I am tired of watching “ Place in the Sun” Sun, Sea and Selling Homes” forcing people into buying houses sometimes in places they have never even been before. They never explain the full cost of the purchase on TV (Legal charges)therefore misleading people. Think about it long and hard and crunch the figures. € 6000 per annum rent is a normal figure and can sometimes include electricity and water. purchase a property at €180,000 and you could have rented for 30years and if you only stay 5 years and want to go home you still have €150,000 in the bank. Just look at the alternative options before falling into a trap that is costly to escape from. 

Mags44

Posted: Wed Jan 19, 2022 5:21pm

Mags44

Very helpful member

Posts: 917

790 helpful points

Joined: 1 Sep 2019

Posted: Wed Jan 19, 2022 5:21pm

CB18 wrote on Wed Jan 19, 2022 12:48pm:

Having been in Spain now over 5 years my advice to anyone wanting to come and live here is rent a property do not buy. I am tired of watching “ Place in the Sun” Sun, Sea and Selling Homes” forcing people into buying houses sometimes in places they have never even been before. They never ex...

...plain the full cost of the purchase on TV (Legal charges)therefore misleading people. Think about it long and hard and crunch the figures. € 6000 per annum rent is a normal figure and can sometimes include electricity and water. purchase a property at €180,000 and you could have rented for 30years and if you only stay 5 years and want to go home you still have €150,000 in the bank. Just look at the alternative options before falling into a trap that is costly to escape from. 

Well I don't know what programme you've been watching because I've never seen an episode of "A Place in the Sun", where the buyers have been forced into buying anything! I understand that "A Place in the Sun" informs all prospective buyers about the law, the legal requirements, and the taxes involved in buying a property in Spain, off-camera. Your opinion is to rent a property. Fine. That's your opinion! Many others have viewed properties and bought them and are deliriously happy with their purchases and sour grapes from others, won't be likely to burst their bubbles. Maybe the amounts that you quote, are sufficient to cover the costs of a basic rental property in Aguilas but they wouldn't cover 50% of the cost in other areas of the province. Your 180,000€ investment in a property would sell for a lot more than that after a few years as well, as property prices have been increasing substantially in the past year or so. You've been living here a mere 5 years. I'll be hitting 40 years living in Spain next year and wouldn't change any of it for the world! Nobody forces anyone to move to Spain or to buy a property here but I'm sure that the majority of those who have done, are very happy with their choices. Life's Good!

RichT

Posted: Wed Jan 19, 2022 5:29pm

RichT

Super helpful member

Posts: 1134

1258 helpful points

Location: Lorca

Joined: 13 Sep 2019

Posted: Wed Jan 19, 2022 5:29pm

An interesting viewpoint...

I agree that 'Place in the Sun' etc. rarely mention purchase costs, although recently they have been regularly mentioning maintenance / community fees, which they didn't use to do. Legal costs to purchase in Spain are not dissimilar to the UK - the main difference is the property purchase tax, which at 8-10% (depending on region) is much higher than Stamp Duty in the UK.

I agree that renting in an area before buying, so you know the area better than just a holiday visit is a good idea; and also people should consider that what you want on, for example, a 2 week holiday, may be totally different from what you want in a full-time home.

However, I disagree that long-term renting is a desirable solution for most people moving from the UK. Unlike other countries, where renting is more common, in the UK we view our homes as assets that will maintain or increase in value and also to provide an inheritance to children (where appropriate). In your example of 30 years rent for €180,000, the tenant will have nothing left to pass on to children, whereas the landlord will have earned €180,000, plus whatever increase in the property value (which at even just 1% pa would be at least €60,000); whereas if the property is purchased, for the same money, after 30 years, the owner will now have an asset of €240,000.

PeterC

Posted: Wed Jan 19, 2022 5:32pm

PeterC

Super helpful member

Posts: 2233

1446 helpful points

Location: Los Alcázares

Joined: 10 Nov 2016

Posted: Wed Jan 19, 2022 5:32pm

Mag44 claimed “Your 180,000€ investment in a property would sell for a lot more than that after a few years as well, as property prices have been increasing substantially in the past year or so.”

IMHO, and with all due respect this is nonsense. It may be possible to see an increase in the €30k hovels, but I see no upward change in decent house prices, and this ignores the excessive agent’s commission and the punitive taxes.

I know of properties that have been on the market for years, then have to be sold at a giveaway price. At least if you are renting you know when you can walk away.

CB18

Posted: Wed Jan 19, 2022 5:36pm

CB18

Original Poster

Posts: 29

22 helpful points

Location: Águilas

Joined: 15 Jan 2016

Posted: Wed Jan 19, 2022 5:36pm

Mags44 wrote on Wed Jan 19, 2022 5:21pm:

Well I don't know what programme you've been watching because I've never seen an episode of "A Place in the Sun", where the buyers have been forced into buying anything! I understand that "A Place in the Sun" informs all prospective buyers about the law, the legal requirements, and the taxes in...

...volved in buying a property in Spain, off-camera. Your opinion is to rent a property. Fine. That's your opinion! Many others have viewed properties and bought them and are deliriously happy with their purchases and sour grapes from others, won't be likely to burst their bubbles. Maybe the amounts that you quote, are sufficient to cover the costs of a basic rental property in Aguilas but they wouldn't cover 50% of the cost in other areas of the province. Your 180,000€ investment in a property would sell for a lot more than that after a few years as well, as property prices have been increasing substantially in the past year or so. You've been living here a mere 5 years. I'll be hitting 40 years living in Spain next year and wouldn't change any of it for the world! Nobody forces anyone to move to Spain or to buy a property here but I'm sure that the majority of those who have done, are very happy with their choices. Life's Good!

As you state that’s my opinion, but on the shows the buyers always offer below asking price and sometimes considerably below asking. I have never heard them mention in the show that the property price is xxxxx plus you have at least another 10%. A lot depends on your age as well if you bought 40 years ago, yes it would be a good investment. Property prices here in Almeria are not increasing at present. They need a show about renting in the Sun 

Advertisement - posts continue below

CB18

Posted: Wed Jan 19, 2022 5:44pm

CB18

Original Poster

Posts: 29

22 helpful points

Location: Águilas

Joined: 15 Jan 2016

Posted: Wed Jan 19, 2022 5:44pm

RichT wrote on Wed Jan 19, 2022 5:29pm:

An interesting viewpoint...

I agree that 'Place in the Sun' etc. rarely mention purchase costs, although recently they have been regularly mentioning maintenance / community fees, which they didn't use to do. Legal costs to purchase in Spain are not dissimilar to the UK - the main difference is the property purchase tax, wh...

...ich at 8-10% (depending on region) is much higher than Stamp Duty in the UK.

I agree that renting in an area before buying, so you know the area better than just a holiday visit is a good idea; and also people should consider that what you want on, for example, a 2 week holiday, may be totally different from what you want in a full-time home.

However, I disagree that long-term renting is a desirable solution for most people moving from the UK. Unlike other countries, where renting is more common, in the UK we view our homes as assets that will maintain or increase in value and also to provide an inheritance to children (where appropriate). In your example of 30 years rent for €180,000, the tenant will have nothing left to pass on to children, whereas the landlord will have earned €180,000, plus whatever increase in the property value (which at even just 1% pa would be at least €60,000); whereas if the property is purchased, for the same money, after 30 years, the owner will now have an asset of €240,000.

€180,000 invested at 3% for 30 years would give €344,796. Just for comparison. Historically the average was 3.7% over the past 30 years. 

RichT

Posted: Wed Jan 19, 2022 6:01pm

RichT

Super helpful member

Posts: 1134

1258 helpful points

Location: Lorca

Joined: 13 Sep 2019

Posted: Wed Jan 19, 2022 6:01pm

CB18 wrote on Wed Jan 19, 2022 5:44pm:

€180,000 invested at 3% for 30 years would give €344,796. Just for comparison. Historically the average was 3.7% over the past 30 years. 

Yes, but you'd be spending €500 each month, so you would have a decreasing return in addition to 'losing' the original €180k. Theoretically, you could have approx. €100k left, versus a very conservatively expected €240k...

All good to exercise the grey matter... :-)

CB18

Posted: Wed Jan 19, 2022 6:39pm

CB18

Original Poster

Posts: 29

22 helpful points

Location: Águilas

Joined: 15 Jan 2016

Posted: Wed Jan 19, 2022 6:39pm

RichT wrote on Wed Jan 19, 2022 6:01pm:

Yes, but you'd be spending €500 each month, so you would have a decreasing return in addition to 'losing' the original €180k. Theoretically, you could have approx. €100k left, versus a very conservatively expected €240k...

All good to exercise the grey matter... :-)

If you take the first years rent out at €6000 leaving €174,000 and calculate the annual average percentage over 30 years at 3.7%

After your first year you will have €180,438 a profit of € 438. 

That amount will remain constant over the 30 years meaning you live rent free for 30 years. That’s why I chose € 180,00 a larger investment would obviously increase the amount. 

How to live rent free! 😂

Mags44

Posted: Wed Jan 19, 2022 7:23pm

Mags44

Very helpful member

Posts: 917

790 helpful points

Joined: 1 Sep 2019

Posted: Wed Jan 19, 2022 7:23pm

PeterC wrote on Wed Jan 19, 2022 5:32pm:

Mag44 claimed “Your 180,000€ investment in a property would sell for a lot more than that after a few years as well, as property prices have been increasing substantially in the past year or so.”

IMHO, and with all due respect this is nonsense. It may be possible to see an increase in the €30k hovels, but I see no upward change in decent house prices, and this ignores the excessive agent’s commission and the punitive taxes....

...

I know of properties that have been on the market for years, then have to be sold at a giveaway price. At least if you are renting you know when you can walk away.

Well Peter, I can only comment on my own experience of my almost 40 years of living in Spain and the buying and selling of various properties during that time. My current, brand-new house is worth around 340,000€ and has been completely newly fitted out and furnished and with everything paid for. This has only come about because every property I have bought and sold has made a substantial profit and allowed me to move up the property ladder. The mortgage payments that I paid on the last few properties were no higher than the average monthly rental payment on the same type of property, so seem to have been a good investment for me. If I had been renting, I would have spent the same amount of money in order to live but without the benefit of owning my own home and being mortgage-free by the time that I retired. I'm happy not to have to worry about rising rental prices and landlords who might not keep the property in good order or those who might cancel my rental contract and leave me without a home just when I need it the most!

Dangerous

Posted: Wed Jan 26, 2022 11:29am

Dangerous

Helpful member

Posts: 199

67 helpful points

Location: Isla Plana

Joined: 5 Oct 2019

Posted: Wed Jan 26, 2022 11:29am

Strange post... and maths doesn't work or makes the sense at all just promoting the rent?

Normally if I don't like a tv show (obviously I strongly believe that all tv shows are  true and the only true) I would change a chanel and would watch something about the nature... but again there's could be something in it what would rise some deep concerns why those animals eating the others for example. Not fair! 

P..S. The mushrooms are the real monster.

Sign up for free or login to reply to this topic

Want to reply to this topic? Login or register for free to post your message:

Find more General property discussion topics from a particular area:


Register for free!

Login to your account

ASSSA Insurance
Jennifer Cunningham Insurances SL
Los Alcazares car repair  service
Advertise your business here
Advertise your property
Help with my computer