Photo by Grant Durr on Unsplash
Many people dream of owning a holiday home abroad or if you have a great climate, a property in your home country. But rushing in with an offer on your dream property might not be the wisest move.
There are many things that you need to research and plan before making the leap to being a holiday property owner. Taking some time to do this can avoid a lot of financial and legal trouble down the road.
Get familiar with the area
What made you choose the country and area for your property? Do you know it well from previous visits or have you seen it on TV and read about it in books? It’s very important that you know the place that you’re going to be spending your time and money in.
What is the climate like year-round, will you need specialist mosquito control or other annual services?
Even if you have spent time in the country and know the culture, the vibe and customs can change from town to town.
Get legal advice from an expert
Using property agents and lawyers with specific experience is a must. They can help you navigate the nuances of the property markets in the county you’re thinking of buying in. Try and get an English-speaking adviser, unless your local language skills are excellent.Check for future developments in the area
Imagine moving to a tranquil town to get away from the stress of life, and then finding that thousands of apartments, hotels and shopping centers are being built around you? What effect will this have on your way of life and the value of your property? Have your representatives do a thorough search to see if there are any developments of this nature planned. If you are very concerned about this, you can always choose an area that is protected by law from these kinds of developments.
Budget for property taxes and annual costs
Every country has its own rules and regulations around property taxes. You should find out what these are in advance and factor this into your property budget. Failure to do this can give you a shock when you find you’re liable for a big tax bill.
In addition, you should also factor in any other annual property taxes and the other running costs for the property. For example, if you have a pool, how often will it need to be serviced. Will you need a property management firm to look after the property when you’re not there? All of these things can really add up.
Final thoughts
A holiday home can be an amazing investment and completely change your way of life. Experiencing other cultures can enrich your life and be able to do so in your own property is something not everyone is able to do. But like all big purchases, you should take the time to make sure that you get it right and avoid any pitfalls that can lie in wait for first-time buyers.
