At this time of the year when the days are short and the skies are grey, the focus tends to shift towards the glorious summer months. Back to when we were able to escape the daily commuter grind and the realities of the 9 – 5 and take a couple of weeks off to lie on a sun-drenched beach somewhere.
But why take just two weeks away when you could own a holiday home in the sun, vacation in it whenever you wanted to and even rent it out for an earnings supplementing rental income? If you’re one of the increasing numbers of people considering buying real estate for investment purposes, it might be smart to combine your investment with pleasure and buy a holiday home abroad!
Holiday Home Checklist 101
Buying real estate overseas needn’t be a complicated or stressful experience; with this ten-step guide to buying property abroad you’ll find the whole process a breeze – and you’ll be lying next to your very own swimming pool soaking up the summer sunshine before you know it.
- Country: You may already know exactly where you’d ideally like to own a holiday home in the sun. On the other hand, if you’re still undecided about which country to buy a second home in, you should factor at least the following considerations into your country based research to determine which location suits your requirements and wants: – weather, property prices, accessibility, stability and things to do.
- Location: After deciding on a country, the next challenge is to find the most suitable area of the country to target for your holiday home search. Think about whether you want to be close to the coast, inland, in a city, away from the crowds, in the thick of it or on a desert island. It’s important to research the area that you want to move to so that there are no surprises once everything is finalized.
- Budget: Determining the money that you have available to you is one of the biggest things to be self-aware of. How much money will be required in fees and taxes when buying overseas? Think carefully about how much of your budget you can allocate to buying a property and then stick to that figure. Be sure to calculate all possible costs so you do not overextend yourself or your financial limits. This could get you into difficulties and prevent you from having the funds available to travel and vacation in your brand new property.
- Assistance: Because you’re buying in a foreign country, you may encounter language barriers, different legal systems, and a whole new buying process. Due to this, it is wise to employ the services of a real estate agent and it is essential to secure the services of a lawyer who can guide and protect you throughout the purchase process.
- Management: Whether you intend to let out your holiday home or not you will probably require the services of a good management company to make sure your pool is clean, your roof never leaks and no one tries to break into your home. Take recommendations locally from other people who have their second homes looked after by a third party and don’t be afraid to ask a property management company for references.
- Income: If you plan on purchasing your home in the sun for an income, find out about any taxation you will be liable for on that income and also about any deductions you can take from your liability to reduce your overall taxation burden. Since you’ll most likely be buying overseas, you must do your homework and make sure you know the laws in the country that you’ll be buying in.
- Insurance: Because your property will either be vacant for long periods or occupied by people unknown to you, it will be important to have insurances in place for the building and the contents. Security (especially in a foreign country) is something that should be the top of your priority list, you’ll be away for longer periods. Get yourself the peace of mind of insurance and a good security system.
Vacationing overseas is an adventure that everyone should embark on at least once in their lifetime. With the winter weather approaching quickly, it’s time to treat yourself and your loved ones to the best present that isn’t on any list other than a “for sale” list. Save as much money as possible so that you can enjoy your home as often as possible and for as long as possible! After all, you deserve the time away from work.