When you’ve got a successful career, a mortgage of your own and a car that you’ve paid off, you may be looking for your next adventure. One such adventure is owning a property abroad.
Choosing to buy a second home to act as a holiday rental for you and your family is a big deal. You can escape the rat race whenever you please; jet-setting to Singapore or heading to Bali on the break of a lifetime. Yes, buying a property abroad would equal a slice of paradise that you own to use whenever you want. However, is it all about that little piece of heaven, or are you going to find trouble in paradise?
When you find the perfect property for sale, the first thing that comes to mind is snapping it up so that no one else can buy it. However, it can help to know what the benefits are of buying abroad before you go for it. Everything has pros and cons, and in this article, we’re going to discuss both when it comes to buying that property abroad!
Pros Of Buying Property Abroad
An Escape For The Family
If you fancy escaping where you are right now in favour of beaches and sunny days, then a holiday home puts you at an advantage. You can find the perfect escape in the property that you buy without having to trawl through the travel brochures.
Extra Rental Income
Another benefit of a holiday home is that you can benefit from a second income source. If you choose to rent it out in the weeks that you’re not visiting, you can build a whole income without having to be there. This is called passive income, and you can hire someone to manage the property for you if you don’t have time.
A Lifetime Investment
As with any property purchase, you are investing very well in your future. If the local area is thriving, house prices rise. This equals better profits for you later on if you decide to sell up. This increasing value is going to be fantastic for you in the long term.
Holiday Savings
Going abroad has become far more affordable when you have a holiday home. All you need is the flight money; there’s no need to hunt for accommodation.
Cons of Buying Property Abroad
Just One?
When you buy a property abroad, you feel obliged to go there every time you want a holiday. This limits you when you have an entire world to discover, and yet if you don’t go for your own property, you may feel like you would lose value in your investment.
Property Maintenance
So, while you can enjoy your home in all its glory when you visit, you may find that the maintenance gets a little old. When you go abroad, you don’t want to do DIY or have to deal with changing the sheets. And it’s up to you to do all the updates to the interior and make sure that the home is functioning properly. The flip side of this is that you also have to deal with it from a distance, which can be difficult if you can’t find a trustworthy property manager.
Ongoing Costs
The price of the property abroad doesn’t just stop at the mortgage and insurance. You have to consider:
- Purchase fees
- Taxes
- Local taxes
- Utilities
- Maintenance
- Furniture
- Pool and garden cleaning
- Service fees
- Mortgage fluctuations
Exchange Rates
You’ll have to buy in another currency when you buy abroad, and this means that you’ll need to open a bank account in the same country. You cannot control the fluctuations, and that means you’ll win or lose depending on the time of year and the rise and fall of prices. It’s important that you understand this going into your purchase!
Taxes, Laws, Regulations
Purchasing a holiday home abroad can be costly and it’s important that you do all that you can to avoid those mistakes that homeowners often make. Get to know the laws in your new property’s home, and you’ll be well-versed as to what to expect.
World News
As with Brexit and other world news issues, you have to consider the effects that massive world changes will have on your property value. It’s not just the fluctuations in currency, but knowing that you are making the best possible decision based on future predictions. Take your time and learn about them, and you’ll be ready for anything when you make your big purchase.
