It may be love at first sight. You may have had no intention of purchasing a holiday home, yet, here you are, looking at photos on an overseas estate agency website, picturing yourself relaxing by the pool. But, as with any major purchase, you shouldn’t rush into property investment.
We know better than most that when it comes to holiday homes, it’s a different kind of excitement to that of finding a place to permanently live. Holiday homes are our passion.
Our home in the UK is to us a strong and unmoving base of certainty. Our villa abroad brings us a different kind of reassurance – a promise of a break from routine and an expectation of experiencing something new and exciting.
But we would rather take the time to research our options than risk turning a dream into a nightmare. This is why you need to conduct proper research. Spending time contacting the right people and visiting the country you have in mind is worth the investment.
Here are our tips on how to get started with finding the right holiday home for you:
Property market trends abroad
You should look deep into current trends in the overseas property market in the country that you hope to invest in.
Are you purchasing primarily to use it as your own ‘Fortress of Solitude’ (albeit hopefully a bit toastier than Superman’s) or do you plan on letting it to holidaymakers? Different areas of different countries will have varying trends. The property market in some areas will focus more on lets, and others on purchases, so be sure to do your research.
If you do plan on letting an overseas property, you would then have to consider whether you would rather focus on short lets or longer tenancies. If it’s a regular income that you are after, you should think about generating some local interest in your property. Market your property suitably!
Sales culture can differ from country to country
It will be worth investigating how properties are marketed and sold in your chosen area. Some countries have a very specific protocol when it comes to buying and selling property. Others will be more loose and you can even negotiate fees. An overseas agent specialising in holiday homes abroad will be able to answer any questions that you may have.
Local laws might be drastically different
There may be restrictions and a number of local laws in your desired country. If you are looking at property development and new builds, it will be worth doing research into this, just in case such rules apply. You don’t want to fall foul of any local legislation.
Research costs and fees
There’s obviously the upfront cost of an overseas property, but you should take into account other fees such as overseas property insurance, tourist tax and lawyer’s fees.
Make sure you factor these costs into your budget, as you don’t want any nasty surprises!
Researching your investment in as much detail as possible will help you (and your tenants, if you do decide to let) receive the most out of owning your dream property.