Are you wanting to buy a property abroad? There are a number of things to consider such as, how you'll use the property and how frequently you'll be visiting. Plus that all important question of how much will it cost.
This article was first published on LinkedIn. Subscribe to Errol Izzet's 'Money Movers and Shakers' newsletter to read his articles as soon as they are published.
Choosing where to buy property overseas can be dependent on so many factors. What do you intend to use the property for? How often will you be visiting? What budget are you working with?
I think to start looking for properties, you need to identify what you are buying this property for. Whether it is leisure, business, or a mixture of both will help determine where you will look, and how much you will want to invest.
Leisure and Personal Enjoyment
Having a property abroad creates the opportunity for you to pack a bag and jet away for a weekend if you feel like you need a break, or if you’re feeling generous you can open your doors to family and friends to give them the opportunity to have a getaway.
Where you buy your property will be dependent on what you want to use it for. Do you want a summer retreat? Are you an avid skier and looking for the perfect base to spend a couple of weeks in the mountains? Feel like you need to be able to jet off for some winter sun? Really take time to consider what you want to use the property for and then you can begin to decide what areas will be suitable for you.
The perk of owning your own property is that you don’t have to pay out large sums when you want to have a holiday, it is smaller and regular bills that aid maintenance and upkeep of your property. Much like the bills you pay for your property in the UK, you will have a mortgage if you are not paying outright, household bills like electricity and water, and any maintenance you have done to the property, like if you have someone come to sort the pool out on a regular basis. Bills like these can be set up as regular payments with a fixed rate to help you maintain a budget or variable rate to try and take advantage of rising market trends.
Financial Asset
Financially, owning property abroad is much like owning property in the UK, it’s an investment that you can sell further down the line, hopefully, for a profit (this is subject to the property market and other factors that can affect the value of a property).
Alternatively, owning a property abroad opens you up to the opportunity to generate a more passive style of secondary income. You can buy a property overseas, and rent it out to holidaymakers all year round – just make sure you don’t book it out when you want to stay there! Being a landlord has got its own challenges and financial requirements, which I will get into another time.
But the tricky question is, where should I buy?
Whether it’s based on a warm nostalgic feeling to a place or you have your investment head on, once you’ve identified what the reason is for you buying a property and how you intend to use it, you can finally start looking! I’ve found 3 properties in different locations that are worth looking into as it’s always fun to keep up with what properties are on the market, and interesting to see what spaces you can get depending on what you want to use them for.
Portugal
Olhos D'agua, Algarve - Sold for: €450,000
A 2 bedroom, 2 bathroom apartment located on the south coast of Portugal sold for €450,000. It is a 5-minute walk from the beach and has features like a double garage. Perfect for a hot summer holiday.
Tenerife
Santa Cruz de Tenerife, Spain - Sold for: €137,500
On the northeast coast, a 2 bedroom, 1 bathroom apartment sold for €137,500, which is ideal for renting out to holidaymakers all year round. It is a very short walk away from the coast making it a perfect winter sun getaway.
France
Morzine, Haute-Savoie, Rhone Alps - Sold for: €395,000
A 2 bedroom, 2 bathroom apartment sold for €395,000 in the heart of one of the main ski regions in the French Alps, Portes du Soleil. With the lifts being a 15-minute drive away, and with buses available, those who enjoy alpine activities flock to Morzine every year.
When you’ve settled on where you would like to invest, please feel free to give me or a member of my team a call or request a callback and we can assist you with your payment needs, ensuring we help you get the best rate achievable, as well as offer you an account manager to help with all your queries and requirements.