Buying Abroad – Many of us dream of owning a property outside of the UK after having had a taste of life abroad. Whether it’s a family trip to the Algarve or a romantic holiday in Dubrovnik, the thought of having an abode outside the rainy British Isles is quite appealing. It is easy though, for sentimentality to get in the way of a good purchase. Sentimentality can add value which would otherwise be absent in the market in question, something which is often exploited.
Resorts
Most Brits choose to purchase in resorts, as there can be great deals available and numerous benefits including shared swimming pools, competitive utility prices, a sense of community and so on. If you’re going to be using the property, you may want to calculate how much you would spend on a villa hire over several years of holiday, and see if it’s worth buying outright. You may find that it’s worth it, and you can sell the property if you need to – you can’t sell a holiday you’ve just had.
Management
Managing an overseas property can be a challenge, however you can find overseas management companies who tend to charge around 8% of rent income, as well as a portion which should be used for overseas property insurance. This may prove worthwhile though as managing your property remotely can be costly and time consuming.
Choose a lucrative location
Make sure that you choose a popular location, or you won’t get any tenants, certainly not at the right price, at any rate. Whilst the idea of purchasing a property in the middle of the Sahara may be your dream, others may not share your enthusiasm. To get the best estimate of value for money however, you must calculate it from the point of view of the property being a normal investment, as well as value added through your use of the property (hence subtracting holiday rental costs).