In “advice on Buying property abroad – Part 1” we looked at questions you should be asking yourself if you are buying property for investment. In this part we will be looking at questions you should be asking yourself if you are buying property to use as a holiday home.
What is your budget?
You’d think this was very obvious but a lot of people fall into the trap of buying with their hearts and getting themselves into trouble financially, they borrow more than they can afford and don’t have the income to support that luxury home abroad.
Once you’ve established a budget and done your sums properly you are more likely to find a bargain as you can get the foreign estate agents working for you telling them exactly what your budget is.
Is the property going to be available for let?
This is not so obvious. If you are buying property for yourself as a holiday home abroad it would be useful to think of buying as if you were going to let the property out as you have a different head on. You have an investors head on even though you are not buying for investment. However, this tactic is useful is things start to go wrong or you lose your job etc you can always let your property out to keep it going. A lot of people have hit problems and the first thing they do is sell that property abroad, often at a loss in their panic to sell and get some cash in.
If you buy like an investor you can be safe in the knowledge that you have more options should things go wrong in the future.
Do you have an area of a country in mind?
A lot of buyers choose a country to buy in but don’t do enough research into the different areas of the country. So the first thing to do is choose a country you would like to stay in, do a little research and find out the economic climate of that country and what their views on foreign investors are, are they welcomed, are they penalised in any way?
Once you have chosen your country, look at the different areas of the country and do some more research. It’s just like buying in your own country however when you buy in your own country you tend to know the area you are buying in which is a bonus for you as it means less research. However when buying in another country we don’t have this insight and more research is called for. You can speak to people who have been there, you can visit forums on the internet and ask advice, you can check out property magazines, there are hundreds of ways to do your research but do not overlook the importance of researching your area.
Are there good transport links to and from your property?
Once you have chosen your areas it is now time to look at the transport links in the area. Ask yourself how far away the airport is, what are the bus routes like?, how much do taxis cost in that area? Is there a good railway network and are they reliable? (nothing could be worse that the British rail network J). This is another area which is often overlooked but nevertheless an important area to look at.
What are the buying costs?
Buying property abroad sometimes has hidden costs that you might not be aware of. There are solicitors fees, estate agents fees, notariy fees, taxes, investment fees. These all vary from country to country so it is necessary to get a good solicitor on your side, preferably one that has been recommended.
How are you going to finance your property?
It is a good idea to shop around as some countries can offer some great rates when you buy from them. I have seen some mortgages for as low as 3.5% over 30 years in some countries and it can save you a fortune in the long run. It will require more work to do some investigation in mortgage laws in your particular country but the payoff is it can save you thousands.
Are you willing to learn the language?
Always learn the language of the country you would like to move to, I think it is rude not to and pretty arrogant. We Brits are the world worst for not learning foreign language, we expect everyone to speak English. It maybe the case that the natives can speak English but refuse to on the count of your arrogance. Absorb the country, absorb it’s people and absorb the language.
Where are you going drink the champaign?
Owning a holiday is an amazing feeling especially when you’ve done the research and bought the right home for the right price. The only thing left to do is enjoy it and be prepared to soak up the atmosphere.
In the next article we will look at buying a home for making a permanent move to another country.
Read Part 1 - Advice on buying property abroad - Part 1
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