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One of my goals is a Spanish holiday home. Nothing particularly fancy, bit somewhere we can spend the off peak times for long weekends and a few weeks here and there, with running costs covered by letting it out during peak season (we've only got a few more years of school holidays to work around).

But I'm not planning on doing anything yet because of Brexit (and a lack of spare cash!). The £ has lost a lot against the €, so the cost of a property is a lot more than 3 years ago and if the £ recovers, you're building in immediate negative equity or loss. Then who knows what the rules will be - you may not be allowed to own property as a non-resident or you may be taxed heavily on ownership or any income. If there had just been a crash in Spain, I might be willing to risk it, but at the moment, I don't think there's enough value to offset the potential downside.

But fingers crossed come November/March/2025, something will be sorted and my dream can become reality, as I hate the cold/rain!

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  • 1 year later...

Do you think it is worth investing in Spanish holiday properties now? It seems to me that Spain is just a very highly publicized country that inflates the prices of its real estate. There are a huge number of Myrtle Beach homes for sale that are no worse than homes in spain. If I had a choice, then I would not want to move to Spain, as this is a really big expense both for real estate and for flights. Guys who have real estate in spain, can you share your feedback on this? Do you regret it or are you glad? How often do you go there on vacation? It would be really interesting for me to hear your opinion. Thanks in advance!

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6 hours ago, jburgessman said:

Do you think it is worth investing in Spanish holiday properties now?

Brexit still isn't sorted, so who knows what the tax situation will be after this.

The pound is still very low, so properties will be expensive comparatively abroad.

You can't go and view any of the properties and that's probably going to be the case for several months. 

If it was a holiday let, who are you going to let it to in the short term (and who knows how long that is)?

On the plus side, the properties are probably a lot cheaper at the moment, certainly at the coast.

As an investment, I'd say there's plenty of places in the UK where it's still worth investing, so why would you bother abroad unless it's an area you know really well?

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  • 2 weeks later...

Thought I'd stick in my pennies-worth here, and look forward to hearing some feedback. It seems that the current pandemic has made the world seem simultaneously bigger and smaller, I will not elaborate, however, this feeds into my thoughts,

I guess the main thing is to be greedy when others are fearful, in this context looking in to buying now is intelligent given that people may well begin to sell off (as per dino v's comment). That said governments are going to be looking for ways to be *seen* to be paying off their pandemic largess, and I think landlords/second-home owners will make easy and politically acceptable targets (again, echoing dino v). We have to ask how important are holiday-let owners to Spain's economy/recovery? I suspect as part of the EU they will remain relatively globalist, though there may be a Brexit sting in this regard. It may also be the UK that imposes extra tax on foreign holdings, and, as mentioned, GBP is now horrifyingly uncorrelated to anything. I would love to have some vacation pad in the sun, and Spain, at worse, is within a (demanding) swim and bike-ride distance should all other transport systems shut down. Other than potential new taxes and mileage in the age of lock-ups and fiscal irresponsibility, the final question is will holiday lets still be wanted in the future - given not too pervasive poverty and social unrest, I predict more than ever. I suspect hotels, those that do not close, will split between the super-expensive and the super-cheap leaving many more to join those who will intrinsically chose a holiday home let anyway.

I am looking into purchasing a holiday let in the UK, not sure if there's a thread for it here? I particularly want to find out how the business rates for holiday homes work in the UK?

Maybe pre-pandemic I would have been very keen on Spain, but now the distance seems too much. Maybe when things have properly settled down - following a year or two of relative consistency, I am hyper-cautious (fearful whether others are greedy or fearful). I do think it is vital we own hard assets and do not have excessive cash in the bank getting devalued away by a reckless government - but what, where and when...

There's an older podcast about this: TPP059:

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