BUYING VS RENTING A HOME Watch before you move to Spain

Are you looking at buying a property in Spain? Leave a comment and let me know!

I'm really loving your channel. Brazilian 🇧🇷 guy living Málaga 🇪🇦

Interesting video once again, sometimes i panic if i would be able to afford a house in the future

Im planning on buying something this year after weighing a few pros and cons of couple of places, have decided on Madrid for my particular lifestyle. It’s definitely pricey, a big decision on many fronts, but it’s also a major European Capital and I’ll ride it through if there is a correction.

They do nothing for first time buyers in Spain compared to Ireland or the UK. The 20% deposit plus taxes of another 10% is just ridiculous. All the houses are being bought by wealthy foreigners particularly in the Canary Islands and Balearics. You need wealthy parents or some sort of windfall to get you on the ladder. The locals are completely screwed. And young people in particular are in an even worse situation. They have no hope...

Good work! I am a foreign investor with a plan to buy profitable rental property at Costa del Sol. Indivicially I will be hapoy to see special deals at sales offices. Now it is not possible.

I have read in several articles that property values in Spain are overvalued by 20 to 30%. I will be moving there this year, most l likely to Andalucia or Alicante and will rent initially while I scout locations and real estate to buy.

Thank you, great video

In 2023 60% of Spanish properties were bought by cash 🥶 It was on the news couple weeks ago. That means if you're not a wealthy foreign investor, you will not just struggle to save up at least 30% of the house value (20% deposit + 10% tax), but you will most probably miss out on many properties as the seller will prefer taking instant cash rather than waiting months for your mortgage approval 🤷‍♂️
It's not easy for the local working class. It's also one of the reasons why locals are fighting against illegal Airbnb properties which are bought by rich foreigners and are driving the property prices up whilst making it impossible for locals to buy in city centres...

This is a very good report on the situation, although it perhaps skirts around the risks involved.

I live in Madrid too, in an area that has massive investment in house purchases, Valdebebas. I see all kinds of people here on an almost daily basis. It's clear that they are people who have access to money (loans or otherwise) to even think about buying here.

On speaking to people I know in Madrid, who have various insights into the housing market themselves, they all say one thing in common: house prices are almost always at their highest and it's a sellers market at the moment. The expected drop in prices, which is what many investors and first time buyers have been hoping for in the last couple of years, is being artificially held up by EU money keeping the economy afloat. The banks have also bought up a lot of the vacant properties and they won't sell them off cheaply as was the case in the crash of 2007, intact they sit on them to keep the empty to create more demand and keep rental and purchase prices as high as possible.

In the meantime, everything has increased in price, so less financially robust potential buyers are squeezed out of any buying commitments, unless they are prepared to take on very long term mortgages. At 64 years of age, that puts me out of the equation from the get go, as it does for the vast majority of people looking for a home for their family in Madrid, or any other major city in Spain. That said, it is still far more affordable when compared to cities like London, Paris or Amsterdam, for example.

The big money is being moved by big players, as in all economies, the governments facilitate the process while making vague promises about affordable housing - that clearly never materialises. This is true in most countries as far as I can see. Within all that movement of money, there will be a significant amount of dirty money being laundered. Tax and financial regulators are either powerless or complicit in all of this. So the big question is, how best to navigate the financial malaise and somehow find something to keep one alive and with a roof over one's head for the rest of our lives?

I like Andalucía special area in Almería. But renting first and reevaluate.

A very informative video. I was surprised by the rankings of the Barcelona and Madrid areas (not 1 and 2). Also, on the other end I was pleasantly surprised by the Valencia area. Thank you Jonny!

Very interesting point of view. I am planning to buy a property in Valencia without having a mortgage.
Do you think Valencia is affordable and a good area to invest in, or do you have some suggestions?

@millennialsWithMoney we are buying a home in spain and need to know what taxes are required. Also what are the fees/hidden costs to watch out for?

i personally think that the Spainsh market is over valued by around 20 to 30%, perhaps more! There has been massive over building especially in Costa Blanca. Anyone with skin in the game will obviously tell you different! If buying now I think one has to be prepared to loose value on the asset. All the best and I hope everyone makes wise decisions!

greetings, I am planning to buy a property in Barcelona that I would use for daily rental. Can you help me with more information and conditions for such an investment. what are the regulations.

Could you talk about the "okupas" problem? I was thinking in buying a property then rent but that okupas issues scare the hell out of me. Not so sure after listening to other people experiences with that.

Do not purchase any property anywhere in Spain. They have scoundrels that once they move it’s very difficult to get rid of them. You will have to go through the court system which may take up to two years or more in order to get any of these intruders out. Also, you will have to pay for all the legal fees. And if g the hear intruders end up destroying your property, you will have to pay for all of the repairs, etc. These people are exempt from having to pay for any of the expenses and will never be penalized. They are protected under the law unlike the property owners. So, why would you want to invest in a government that protects all the rights of these intruders and offers nothing to the property owners.

Is there a video talking about the same subjects of this video regarding the islands (gran canaria) ?

thanks for the good analysis.

And what percentage of real estate purchases are made by residents of Spain, and what by foreigners?

because it is possible that the market is being driven up by investors from abroad?

Torrevieja is now the fastest growing city in Spain, get in while you still can as the prices are rising fast !!!!!

If you want to buy in Spain in Malaga, Marbella, Barcelona or Madrid etc. you’re going to pay over double the price of a property in Alicante Torrevieja

Hi dear

I was amazed when i was in San Sebastian that it was impossible to find anyone who spoke a word of French. Easier to find someone who spoke English......

Looks like Spain is following Portugal in stopping to issue Golden Visas to real estate investors in order to curb rising property prices.

I don't view properties in Spain as investments, but rather as life-choice purchases. I know that some prices rise, but if developers see there's lots of demand, they'll just build more. I think the only realistic way of making money in Spain is at the time of purchase, so negotiate a much lower price and immediately you'll have some equity. But most people think they'll make money when they sell their properties. Factor all the transaction costs, and if you didn't purchase with a big discount...well, it will be hard hitting that target...

Certainly some good comments and worthwhile advice.

Personally I wouldn't buy in any of the 5 cities mentioned, so spot on for me.

Thanks, Jonny! In the U.S., there is a lot of talk about a big real estate crash due to troubles with commercial real estate investments. Mortgage rates are mostly fixed for home loans, but that is not the case for commercial mortgages. If there is another 2008-type real estate crash in the U.S., how do you think this will impact real estate in Spain?

Also, if places in Madrid and Barcelona are somewhat normal, what about Valencia? ¡Gracias!

I am looking to invest in properties in Spain, do you recommend becoming a Spanish resident first or buying through an LLC in the uk?

Stop speculating on housing outside your country. Speculate in your country.

Thank you, fantastic breakdown.

Hello, is there a link please to the property map at 3.30 mins please ? This was very helpfull 😉

"Millenials with money" - hahaha! Terrific! Liked, commented, subscribed.
🦾

Can you make some video about Market Navigator from Idealista ,that software is really interesting for us?

srsly argumwnts

I think many small company owners will be forced out of business. In north europe. They will ask themselves where they can live. In agreable conditions, with lower prices. That is in Spain of course. Probably murcia and alicante will profit a lot...
Be VERY careful though, buying property close to sea !
Government obtained the right to take over ownership !!!
To be able to "fight" rising sea levels. For the imaginary climate change... leaving you with some using right only.
People should be WARNED for this ...

Sky high prices and taxes! The tax office even want money 4 years later! And then you have the squatters! When you leave your house 24h they come in and will never leave your house anymore! Just rent!

On the islands like tenerife, italian,russian,venezuela, cuba maffia! Very corrupt lawyers and notaries! Sky high taxes!

Ex burócratas de ministerios y agencias japonesas han vuelto a contratar ilegalmente y han amasado riquezas desperdiciando el dinero de los contribuyentes. Cuando los exfuncionarios vienen a España, exprimen dinero del mayor número posible de exfuncionarios. Y todos los españoles, por favor venid a Japón. Todos ustedes se convertirán en héroes a los ojos del pueblo japonés.

Global downturn

Spain will not be spared😮

No, government talking about increase in tax…..100 per cent