Organising Your Finances for Buying Property in Spain
You should have already planned your needs and decided on possible locations based on your needs i.e. holiday home, retirement home, investment property. Organising your finances and possible mortgages is one of the most important steps and should be based on your need i.e. for investment minimum risk maximum return, for retirement minimum future outlay for someone on a fixed income. For holiday home the method of finance and possibly mortgage depends on your circumstances, but possibly it may be best to buy outright if you can afford it.
Despite all the advice from past property programmes on TV DO NOT RELY ON RENTAL INCOME!!! for either investment or holiday home. The rental market is swamped with houses and apartments lying idle, with too many owners fighting each other for long term rental. That’s why you need to use a site like Owner Direct Spain, to advertise you rental property.
The so called expert opinion was that you should obtain a mortgage in the country where you bought the property but I think this, with hindsight, was wrong. In Spain the banks are very inflexible and do not do interest only mortgages. The Spanish banks have amassed huge banks of property which they repossessed from defaulted mortgages and have mothballed to avoid a glut in the market and to avoid embarrassing balance sheet write downs.
You must assess your needs and which finance or mortgage option is best for you. In the end it could be your mistake that could ruin you so don’t rely on anyone else’s advice, make your own decision then your fate is in your own hands.