Would you buy a 2nd home in Spain?

[CaraCruise]

Can anyone advise on the above? It seems a minefield at the moment with Brexit and Covid but we are about to complete on the sale of our house and are looking to invest. We would like a bolt hole to escape to but I am worried if this is a wise investment. What else would you do with £250k + wisely? We have no other savings.

Well maybe invest in Madrid but I guess you are talking coast?

No we have thought about it but have changed our minds

We are EU citizens so unaffected by Brexit, also fluent in Spanish so not many obstacles

Not for financial reasons but because we don’t want to be tied to a place... we wanna see the world!

I'm confused - if you're selling your house, why would this be a second home?

We lived in Spain for fourteen years then came back to the UK 3 years ago. Last year we bought a second home there.
We knew the area well and had learned from the many mistakes we made with our first house purhase so we went into it with our eyes open.
This time we bought a bank sale i.e. repossession property. I'm aware of the prices in the area we bought in and we got a very good deal.
If we sell we will probably make some money but would not bank on it. Estate agents fees are high think 5% and there are taxes on the sale as well as capital gains tax.
Buy if you want to spend time in Spain but don't bank on making a lot of money.

I wouldn’t at the moment, when COVID and brexit, and I live in Portugal

No way. You would be better putting the money in the bank and renting an apartment any time you wanted to go to Spain.

@swimster01 sorry should have explained, we have another property in the UK we can move into.

I wouldn't buy a property overseas unless was planning to relocate there. And if you have no other savings, I would keep a proportion in the bank and some in lower risk investment funds in SIPP or ISA wrapper

How do expect the property to be an investment? Hoping it’ll increase in value? Plan to run a B&B?

I wouldn’t do that if you have no other savings/investments. I’d prioritise things like pensions, ISAs. You could sit down with an IFA to go over your financial goals and how to achieve them rather than spend the whole pot on a property in a country which has been very hit and miss for house prices.