If you’ve got money burning a hole in your pocket and you’re itching to invest in property, don’t just think about houses here – consider spending your money abroad.
Investing in bricks and mortar in other countries could be a way to get a better rate of investment in the long-term. You might also provide yourself with a nice cheap holiday home for the next few years.
One of the hardest things is to find property that’s right for you in the first place. You could end up spending a small fortune on cheap airline flights just to check out different areas of various countries.
Here are a few simple tips to make it nice and easy for you to find property in the country you want.
First off, you need to decide exactly what kind of investment you want. Do you need it strictly for a long-term investment, or do you want to try to generate a good income from it? Do you want the security of a long-term local tenant, or the better returns and higher risks of holiday makers?
You may also want to find property to act as your holiday home as well as an investment. This can be an especially good idea if you are semi-retired or want to spend a considerable amount of time out of the UK, enjoying the sun!
Just as you should with a property investment here, look for an area that is up and coming. If an area is already popular prices will be high and your potential return lower. Once you have selected the region or town you want to buy in, try to get some inside knowledge from locals. They will help you find property that’s suitable. This process can be as simple as drinking in the right bar and asking the right questions in the right language.
Remember, potential property hotspots are often found next to existing popular areas. They seem to spread out and push prices up… that’s good if you’re already an owner.
Next consider if the basics of the area are right. Are there enough shops and restaurants nearby? Are the facilities good enough? If you are targeting rental income from holiday makers, is the airport a reasonable distance away? And will they be able to enjoy the holiday home and the nearby facilities without having to hire a car or rely unnecessarily on public transport?
The number one consideration for holiday makers is often the view from the property. That’s what people are buying when they choose your property to stay in. Have a walk around the area and try to identify potential development sites for the future, so you can see if any apartment blocks could be put up destroying your view.
Next up, a consideration that you rarely have to think about when you find property in the UK: what’s it like out of season? If the area becomes a ghost town during the winter and all the shops and restaurants close, that could affect the returns on your investment.
When you do find property that’s right for you, congratulations! But now you could be in for an expensive slog to make it yours. Some experts estimate you will spend up to ten per cent of the purchase price dealing with legal expenses and paying taxes on a foreign property. Certainly you should appoint an independent lawyer and never rely on one suggested by the person selling the property.
It’s also worth checking out the inheritance laws of the country you are buying in. In some places, you may need to make a separate will in that country to ensure the property is correctly passed on if you die.
Overall, it will help you immensely and speed up the process if you can learn a basic working knowledge of the local language. No-one will expect you to be fluent, but anything you can do to improve understanding between you and the other parties you will deal with can only be good.
Remember to get professional advice from a qualified person before taking any action. Don’t rely purely on information contained in this article.
By Alexas_Fotos from Pixabay