Buying property

Questions relating to buying or owning a property. Moving to Menorca Sub-forum: moving to, or living and working on Menorca
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billmccan
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Buying property

Post by billmccan » March 7th, 2018, 2:21 pm

Hi All, IF I was thinking of buying property (big if) Can anyone say if this is a good idea in these uncertain times. Also when looking at property at seeing the prices are there any taxes to add to this and when dealing with this is it better to use a Spanish solicitor or British one in Menorca.I know there are a lot more questions to be asked but at the moment this was just an idea I was thinking about.
TY
Bill

MikeC
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Re: Buying property

Post by MikeC » March 15th, 2018, 9:45 am

Hi, just noticed that nobody has replied to you. Giving advice is difficult because I don't know your circumstances. My wife and I bought our apartment over 10 years ago. The exchange rate was 1.50 euros to the pound and property prices high. On the face of it a big mistake. However, we bought it for us, not an investment, and we've had over 10 wonderful years on the island. We don't regret it at all. We went into the purchase with our eyes open (although we didn't fully anticipate the fall in exchange rate and Brexit) and always factored in the affordability i.e. we didn't plan on rental income. For us, an incredibly good decision that we don't regret. For other people, maybe not! I suppose it depends on your motivation. Good luck, Mike

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Re: Buying property

Post by stephanies » March 15th, 2018, 10:31 am

Property prices are low BUT the exchange rate is rubbish. It is easy to buy but can take years to sell. Only you can make this calculation.
Add 9-10% legal/fees when buying a property.
It is fine to us ea local lawyer, or even a trusted para-legal..........

RubiAnne
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Re: Buying property

Post by RubiAnne » March 15th, 2018, 2:07 pm

stephanies wrote:
March 15th, 2018, 10:31 am
Property prices are low BUT the exchange rate is rubbish. It is easy to buy but can take years to sell.


This what puts me off buying abroad. Ok to buy but you could be stuck with something when the time comes to sell. I wouldn't want the burden of it.I've seen too many people buying places and then they are stuck when things don't work out or they have had their time and want to move on.

corsario
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Re: Buying property

Post by corsario » March 15th, 2018, 2:51 pm

It is true that you can get landed with a propery you can't sell, or only at a loss, so as has been said above at present it might be wise to buy only if you are not relying on selling in the foreseeable future.
We bought our place because we wanted to have our own place for holidays, and not as a money-making rental proposition. We did break even with enough to cover our flights and car hire etc but that is all on hold now due to the new laws on renting.
We bought at the top of the market, and the 2008 crash really wrecked the market value, but as we wanted to pass our place on to our family we haven't been too concerned.
Brexit may have some unforeseen effects on property ownership, but it's too early to say. However, it might be wise to consider buying via a company to avoid the Spanish IHT regime which is pretty brutal. We bought in our own names originally but converted the title later...sadly at quite a cost...but we are happier now that it is owned by an English company and only wish we had been advised about it at the start. I expect the lawyer didn't know, or didn't want to lose the lucrative executry business in the future.
Hay que verlo para creerlo!

Every home needs a pantry...

pc.hc@tesco.net
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Re: Buying property

Post by pc.hc@tesco.net » March 15th, 2018, 11:40 pm

We have just bought can you explain this English company option in more detail?

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billmccan
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Re: Buying property

Post by billmccan » April 23rd, 2018, 9:35 pm

Thank you MikeC , Stephanies and Corsario and all others that responded to my post. There's a lot more to this property business than meets the eye, so will have to give this more thought.

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