This is a collaborative post.
Most people dream of owning a holiday home abroad. It could be a private escape in the sun to take the family to or perhaps a mountain retreat for escaping the hustle and bustle of everyday life. Owning a holiday home might seem like something only the filthy rich have the ability to do, but actually it’s a lot more affordable than people realise. Here are just a few reasons to consider buying a holiday home overseas.
Property abroad is cheap
Compared to UK home prices, property abroad can be very cheap. Those buying a flat in the UK may have to save up a hefty deposit compared to an apartment in Spain or Greece.
There are obviously expensive places to buy property. Cities will always be pricier, as will properties right in the hub of tourist areas. However, by searching a little off the beaten path, you may be able to find some incredible deals. PropertiesUnder20K is one site that offers what its name suggest – properties all around the world for less than twenty grand! Whilst these may not be luxury villa standard, they could still offer an escape broad to your country of choice.
Mortgage rates for properties abroad meanwhile can be decent. There are special mortgage brokers out there such as UCIMortgages that cater for properties abroad. They can help to translate the process for you, as well as avoiding the need to change bank.
It’s worth hiring a surveyor to check the property is in good condition. Bear in mind that you may need a translation when it comes to this part of the process too.
You can rent it out to others when you’re not there
Don’t think you can afford the mortgage rates on top of the running costs of your home? What if you rent the property out to guests whilst you’re not there? On top of covering the mortgage payments, you may even be able to charge enough to guests to make a profit. In some cases, it could be more profitable than owning a buy-to-let property in the UK.
Choosing the right kind of property is essential if you want your investment to work out. Whilst you may be happy with a remote villa in the middle of nowhere as your own personal retreat, you may be more likely to attract guests with a property in an area with decent local services and attractions. Holidaymakers may not be the only people looking for accommodation abroad – you may also be able to rent it out to students or travelling businessmen. A holiday property is likely to be different to a business trip property, so bear this in mind. If travelling business people are your clientele you might be better off looking for apartments from companies such as RumahDijual rather than villas with swimming pools. Similarly, if the area is popular with senior citizens, you may want somewhere that is senior-friendly and on a ground floor.
You’ll need to hire a property manager too if you’re renting out to guests. This property manager will be in charge of giving keys to guests as well as ensuring that the property is always left clean after every guest has left. This person can also attend to any immediate maintenance that needs doing so that the property is always in good condition.
There are many simple ways to advertise your holiday rental. The likes of AirBnB are great sites for attracting guests. These sites are also able to vet guests for you to stop the wrong kind of people staying there. You may also want to give travel brochures a go as well as backpacker guides.
It’s also worth embracing online reviews. Many travellers use reviews to help determine where to stay. After people have stayed at your property you can send them an email and encourage them to leave a positive review.
It could be worth adding a few incentives to your property to make it more guest-friendly and to help encourage good reviews. This may be something as simple as providing a bottle of wine in the fridge for each new guest or it could be something bigger such as paying to install a Jacuzzi tub. Some of these incentives such as a Jacuzzi tub may even serve as an extra treat for yourself whenever you decide to stay at the property.
Friends and family can use it too
Many property rentals abroad may have restrictions on how many guests can stay. However, this isn’t the case if you own the property yourself. You can set the rules and invite as many people as you like. This could be great for planning huge family holidays or trips with huge groups of friends. You may even allow your friends and family to stay at the property when you’re not there. It could be treat for everyone you know and not just yourself. That said, you don’t want to be renting your property out for free to friends and family too often if you’re buying a holiday home as an investment – you’ll still need paying guests to make sure that the mortgage and bills are paid off!
It could even be a place to retire permanently!
You could even buy a place that you hope to retire to one day. By renting it out in the meantime you’ll eventually pay off the mortgage and then be able to spend retirement living in it cheaply. Such a property investment requires a lot of thinking ahead and you may want to look for somewhere easily accessible and on a ground floor that’s not going to be well suited to you in old age. Before moving abroad, check that you’re still eligible to receive your state pension. Sites like PropertyInRetirement are useful for guiding you through such a retirement strategy.
Even if you change your mind about the property before you reach retirement, you can always sell the property and use that money to then spend at your leisure. This could be a great retirement fund strategy that could help to complement your pension.