Need Help for Apartment Purchase

My son has an apartment in a coastal town   Six years ago he tried to sell but had no luck.  At that time we had a friend who had just sold his studio apartment which was too far from amenities.    He had a very limited income.  My son decided to let him stay rent free in his apartment in the hope that the property might pick up.   It has not

My son decided it was safer to do what he did rather than to let the property.  After paying all the taxes and the hassle of letting, with the additional risk of damage, theft etc  the small net income was not worth the risk

In my opinion, despite real estate agents doing their best to talk the market up,  I do not see it

As you will gather I would not follow the course you are considering

You will also need to study the taxes, inheritance  laws etc.   I believe as a non EU resident you will be required to pay 24% on the gross rental income and if you use an agent you may also have ITV tax ( similar to USA sales tax) too.   

NB My son is a qualified accountant and an EU Citizen so would get I believe 50% of rental income free and could claim all expenses connected with any rental and would pay 19% tax on the balance.  As I said he does not consider even in his much more advantagrous circumstances it is worth letting nor that the time is yet right to try and sell

Johncar,

Thanks for the information. We are just getting our bearings, so this is helpful. Perhaps we should not rent, but hold the apartment until we are ready to use it ourselves. Do you feel the market is still cold? Is there appreciation potential?

Sorry I thought I made it clear when i said I would not follow your course

To put it more bluntly ‘I would not touch it with a barge pole’ !

I am no property expert but I have lived in 30 years.   I have another son, Laos a qualified accountant, who has Ben working with a girl friend who has been in the real estate market for many years.  My son now considers the market shows little signs of improving.

There are also many properties being held in a government bank which commercial banks had lost money on.  It is a way of fighting off the irrecoverable bank debts.    Those properties probably be released on market at some time unless the government demolish them   Of released it will no nothing to correct the market

Thanks Johncar,

We are looking elsewhere. Good things to know.

Tom