If you’re considering how to invest your money this year, you might be tempted by a property outside the UK.
With claims of a better capital growth and higher rental yields than a buy-to-let property here in the UK, purchasing a property abroad can be more affordable compared to the UK housing market. And buying a buy to let in Barcelona or a holiday home in Paris is certainly more exciting than investing in a bleak semi in Blackpool or Eastbourne.
Many new buyers purchasing abroad will look closer to home in locations across Europe and often buy a second home for their holiday or retirement. However, with developers promising a guaranteed annual yields of 6%-7%, it’s beginning to tempt many more brits to take the plunge into buying abroad this summer. So why should you get excited to start house hunting in the sun?
You can choose your ideal location
Many of us dream of owning a holiday home in the sun and finding our very own paradise. Deciding on a location to buy your holiday home can be difficult with so many beautiful destinations out there. So go with what your heart tells you and a location you have fallen in love with. Let it become a dream come true to buy a property in a place that brings you happiness.
Once you have decided on a location, you’ll want your holiday home to be a good investment, so it’s important to think long-term. Property experts will constantly highlight new markets they deem to be “hotspots” where you’ll be able to find bargains! These “hotspots” you may find can often be in countries were prices have fallen drastically. However, it is often wiser to buy a holiday home in a more established market. This guarantees a safer long-term investment. You can find helpful step-by-step guides online to help you through each stage of buying your new home whether that’s in Spain, France, Italy and many other locations.
You’ll also want to conduct thorough research about the local amenities, by considering things like being close to an airport so that the commute from the airport to the holiday home isn’t time consuming or costly. It may be important to you to have local restaurants, shops and a beach nearby. And whilst you are out there viewing new properties, talk the locals and get a feel for what it’s like to live there. Don’t forget to take into account the holiday season of that area if it is a popular tourist location – some attractions may be closed in the off-seasons.
It will become home when you are there
Unlike buying a forever home, you’ll be agonising about getting the right size to suit you and your family and making sure there is enough room to expand if your family grows. However, buying a property abroad, the size doesn’t matter! The most important factors will likely be the location, the town you wish to purchase in and what buying here will offer you. As when you go to stay at your holiday home (or if you’re renting it out), everyone will want to be out in the sun and exploring the local amenities or heading down to the beach.
You will treasure your new home when you are there, it will forever feel like a dream come true. There nothing like the feeling of being home and in your comforts, and your holiday home will be a special place for you.
It could be easier than you thought
Attracting business and managing the property yourself can be rather tricky, especially if you’re in the UK most of the time.
Owning a property abroad is a popular investment strategy for those that like to invest in real estate. This kind of investment strategy can provide you with a passive income, by bringing in a consistent income from rent. And you don’t need to manage the investment yourself, you can hire property management company that will take care of everything for you.
By hiring a property management company, they will take care of the maintenance and repairs of your property and collect rent for you. They’ll later sent the rent cheque to you every month, so you will not have to do much of the work yourself at all.
You’ll always have a holiday destination booked
One of the best temptations of buying a holiday home is the free accommodation when you jet off on holiday. When you own properties in desirable locations wherever that may be, you can simply stay in your own holiday home whenever you go on vacation. Many people like having the comfort of their own home waiting for them in an exotic location. And there is no need to worry about booking early enough to get the best hotel or do extensive research into the area and hotel to make sure it has everything you need and in budget.
Package holiday prices are expected to rise by 9% in 2018, with cost of flights increasing by 3.5% and hotel prices by 3.7%. So a cheap family vacation may not be as easy to come by or be as worthwhile depending on your ideal location.
So could buying abroad this summer be right for you?