Why buying a house in Ireland is a bad idea and why buying one in Spain is a good idea – Part 2 – Comaskey Properties

(as written by the Spanish estate agent!!)

So, if you are just tuning in, part one of this blog is explaining why I believe investors should buy a home in Spain for 100,000 euro and earn an income of 500 pm while living in a 200,000 euro home in Ireland while paying only 700 euro.

4. Liquidity: Another factor needed for a good investment is how quickly can you cash it in. Your home in Ireland can sit on the market for months – six or seven months in many cases. The market is quite stale, making it difficult to turn your Irish home into cash. Thats why we buy there – owners will take massive hits even on their cash producing commercial properties.

Let’s say you want to sell your La Zenia townhouse- all things being equal and if you are willing to price it right, we’ll sell it for you within a few weeks- thats real liquidity. Perhaps you may need to take a hit depending on the market but we’ll sell it for you and generally buyers are cash buyers in Spain, so completion is quick. It can be as quick as 4 weeks very often.

Let’s look at the practicality of being a tenant in Ireland and a landlord in Spain.

Ok, so you’ve decided to rent a home in Ireland which you live in (a liability) and buy one in Spain which you will earn an income from (i.e. an asset). People will tell you that’s crazy, you own a house but live and rent somewhere else. These are the perfectly logical arguments you must have practised and ready to use on these property owners.

The benefits of this approach:

Firstly, look at the flexibility that this gives you. If you rent close to your work for instance in Ireland yet change jobs, suddenly you may have to commute ten hours per week. If you are renting there, just pack up and move closer to the job. Should your family circumstances in Ireland change and another puppy or even a baby comes along, leaving you short on space – Don’t worry, just move to a larger home- if you rent that’s easy to do.The banks offer 35 year mortgages in Ireland. Are you telling me if I buy a home there, I’m stuck with it for 35 years?? That’s a scary thought.

Your washing machine giving trouble in your rental property in Ireland? Call your property management company – they will have a new one delivered to you within 24 hours- better still, the cost will be covered by the landlord.  Maintenance on your home in Ireland too will be covered by your landlord and it’s costing a heck of a lot more than the equivalent will in Spain. Your lawn will be mowed, your hedges clipped, your home painted every couple of years, and you can sit on the sofa looking out the window while watching all the work going going on around you.

Now, while you are paying rent in Ireland, Poli in Comaskey Rentals, or any one of the good rental companies in La Zenia and surrounding areas, will be putting money into your Spanish bank account. Yes, you will definitely have costs here. Suma Tax, property management etc – but they are a heck of a lot less than they will be in Ireland.

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