What do they say in Europe today?
They say, “You can’t have your cake and eat it too.” But is that true?
When you purchase a home in Spain, you can enjoy “free holidays” while your cash is protected in brick and mortar, earning you rental year round or via capital appreciation. Here are some other ways that you could be earning passive income from your Spanish home while you enjoy it.
1. Lower living costs
You’ll pay at least 18 per cent lower for groceries in Spain than you will in the UK, as reported by Numbeo, the expat’s website. When you visit a restaurant, the food and drinks are 25 per cent cheaper, and the rents are 28 per cent cheaper.
Another good thing about Spain, according to prices submitted by expats, is that the groceries are 35 per cent less expensive than in France and 25 per cent cheaper than in Italy.
So if you want to live on a budget, you’ll soon learn how the locals are saving money. The minimum wage in Spain is approximately €10,303 per year. Compared to the UK minimum wage of roughly £16,000 annually, Spain’s is approximately £9,300. So it will cost you almost half to live in Spain as it does to live in the UK. You not only get the sun but a valuable asset. No wonder your dad is happy!
2. Capital growth
The property prices in Spain stabilised in 2015, but that was after the crash of 2008 where they dropped to 12 per cent every year to as low as three per cent every year. We saw a rise in 2016, with capital growth at approximately 4 per cent in 2017-18. This would constitute the national picture.
However, on the coasts and favourite locations among the British, prices are increasing, and they started earlier. Even so, they are still sustainable and lessons of the financial crisis were learned to some extent.
So you want to buy, but you need more cash? The life you dream about in the Spanish sunshine is more attainable than you may think.
Several estate agents in Tenerife can help advise you with the entire process and make it happen.
3. Euro-commuting
Of course, there’s another option; you can enjoy the lower Spanish living costs while taking advantage of the higher UK wages by commuting to the UK for a few work days per week.
Why does this make sense? You get the lifestyle that many can only dream about and the security of a good wage.
4. Live there in winter and rent out in summer
Of course, you can always be creative with your lifestyle. You can escape the British winters by staying in a home in Spain and then you can rent out the property during the Spanish summer months. There are many platforms where you can advertise your property or you could contact an agent who can manage your rental property for you.
5. Brexit
Did you know that if you buy a home in Spain and become a Spanish resident, you and your immediate family could qualify for your EU right to subsidised healthcare and pensions?
6. Cheaper holidays
You can see that Spain is expensive from the summer to the Easter holidays to October half term when you look at the information found on a holiday lettings website.
However, you could buy an apartment for a very reasonable price that would cost a premium to rent during the summer months thereby saving yourself a lot of money. In this way, you can get an endless summer holiday along with an asset rising in value. So yes, go for that slice of cake!