Illustrates how with careful and prudent planning, then purchasing a property early can often be the best way to prepare for your retirement – and help to realise a dream more safely and wisely.

The safe search for an investment property on the Tropical  coast by V Sewell & S Dobson

It was a decision taken some years previously that we would ‘retire’ to somewhere warmer, less hectic and with 4 years to go we decided that this would be the time to invest in a suitable property. Once having visited La Herradura we knew this was the spot for us. A beautiful Spanish bay with a village like feeling and easy, fast access to Malaga Airport – and more recently the lately expanded Granada Airport. Because we are both still active and agile the idea of living within the village appealed greatly to us. We did not want to have to use a car for everything and warmed to the idea of being 'involved' in daily life rather then living more remotely. Of-course, with out limited budget, our 'dream' house would never be affordable – but this would have been the same scenario back in the UK!

When we contacted Martin via the internet we had several 'must-haves' on our list. First was the location, in or close to La Herradura, and second most important, was outside space. The idea of an apartment with a small balcony was not really our dream. I think perhaps we had in mind a compact town house with a small patio or garden. Further, we did not want a property that would require too much refurbishment as we knew we would not be able to oversee any works during the 4 years before we could make our move from the UK. [#1]

Although we had selected in advance certain properties to view from various websites that seemed to come close to our requirements, Martin was able to show us an extensive selection of other homes so that we could fully understand what our budget could realistically get us and decide on our compromises. We were delighted when one of those turned out to be an apartment with a huge outside terrace, almost the same size again as the inside, within the parameters of La Herradura and a very short walk down the hill to the shops and beach. Just recently completed this apartment also met our requirements with regards numbers of rooms and great 180 degree views of the bay and mountains.

Before our visit we had done our homework and had our finances reasonably in place. We had decided our easiest option was to pay 'cash' for our Spanish property by mortgaging the home we owned in the UK. This will always be a personal decision but as we both worked and earned our living in London we felt this to be the least troublesome option. We already had a mortgage offer in place, and although, as usual, our intended property was a little over our original budget, it was not difficult to renegotiate this, putting us in a position to make an immediate offer – just as well as it appears several other prospective buyers were also very keen but were delayed by finance issues. With Martin’s help we speedily progressed with all the other requirements, such as instructing a reliable local lawyer, opening a bank account, and registering with the local police commission [#2] .

We had originally intended to possibly rent our apartment to holiday makers to help with our mortgage, but on Martin’s suggestion, we decided to use his help to rent the property unfurnished on a long let basis [#3]. He advised that our location was ideal for people working in the area, both Spanish and foreign, and well placed for schools, both local and international. This was something that we had never even considered previously but instantly appealed to us as it negated the need for us to quickly furnish the apartment and find a local management agent – all we needed to do was ‘furnish’ the kitchen – which was speedily arranged with the help of Martin’s introductions and translation skills!  Although we were both initially sceptical about finding suitable tenants within no time Martin had found a lovely Danish family who were looking for a minimum one year rental whilst they considered moving permanently to the area – which they eventually did. During the 4 years before we were able to move here I think we only had a few odd weeks between rentals when the apartment was vacant – thus providing us with a very reasonable additional income. Martin was able to act as our local agent and assisted all our tenants with local requirements, setting up utility bills, schools etc. and maintenance of the property between rentals.

When we finally arrived ourselves in Spain we inherited an empty, blank canvas in which to create our home and through having only long term lets, the apartment had suffered only minimal wear and tear. We are now finally resident in our lovely village and enjoying every moment. Would we do anything differently? Well…..with hindsight we may not have paid to cancel the Spanish mortgage that came with the property as this would easily have been covered with our rental income – which Martin had counselled. We still look at other properties and think 'what if' (don’t most people?) but ultimately, unless we came into a very large windfall, we would not change our home and love the feeling of being part of this idyllic location.

Throughout every process Martin was always there to hold our hand, although by making an effort to learn the language, we have become more independent and used to the 'ways' of living in Spain. His patience is and was always phenomenal. My advice to anyone considering a move to Spain would always be to do your homework, come prepared, listen and take note of local advice from an expert, but ultimately – go for the dream!

NOTES:

[#1] The issue of refurbishment/renovation is a sensitive one for most clients who are not living near their second home. It is therefore very important to take advice not only from  a local registered builder as a guarantee for the work but also to, in cases were the reform is a substantial task, to have a private contract drawn up between both parties. This contract will ensure an agreed stage payment schedule until satisfactory completion of the works and will usually give both sides a clear procedure. Your legal representative can assist in this document; and if you are confident with the representative of the selling agent then they too can assist to present a progress report or photographic record.

[#2] It is, since 2005, a legal requirement, and also your fiscal responsibility, that when buying property in Spain you must declare any income with your Spanish tax return. Your lawyer or gestor will be able to assist you in this annual return that will cover not only include your wealth tax (patrimonial) obligation but also the deemed rental income tax (rendimientos del capital inmobiliario).  While the tax is not a great amount, it is better to ask a professional to do this return for you; as in the last year there have been significant changes to the tax system in Spain and individual  situations can vary considerably.

[#3]  Letting your property in Spain offers a range of benefits and possibilities to supplement the costs of your second home. The 2 main options are either to let long term the property as furnished, or un-furnished; or to let the property for holiday programmes. There are many specialist holiday agents locally that will advise you on how to achieve good results during the holiday season; they can arrange a variety of services for you and your guests to help you make the most of your assets in Spain.