There are lots of reasons to buy abroad. Maybe you want a retirement home in the sun or a beach view villa for family holidays or a stylish weekend escape pad. Moreover, buying property abroad is a great investment. But only if done correctly.
So, before you start booking flights or visiting estate agents, here are five key things you should consider first.
#1 Know how much it will cost
When you look at your finances, consider not only if you can afford buying abroad, but also the travel and maintenance fees.
The good news, there are lots of ways you can raise funds. For instance, if you’ve received an inheritance or an unexpected pay-out then buying abroad can be a great investment opportunity for you. If you already own a property, you can re-mortgage it or sell it and downsize. Or, if your longer-term plan is to emigrate, you can sell your UK home to a cash house buyer and avoid the headache of dealing with agents and chains.
Also, don’t forget to include an emergency fund into your calculations so you’re prepared to cover any unexpected costs.
#2 Choose the Right Location
Your decision of where to buy should depend on a few things. Naturally, your location priorities will differ if you’re buying a property as an investment or as a potential retirement home.
If you’re an investor, you’ll want to get bang for your buck. So, you’ll probably look at locations that are more likely to give you’ll get a higher return like up-and-coming areas or those with good transport links and facilities.
In contrast, if you’re a retiree, your priorities will be different. For instance, do you have family nearby, can you access your favourite leisure activities or is there an established ex-pat community you can connect with.
#3 Buy in an area you love to go on holiday
If you’re looking to purchase a holiday home, start your search in places you already visit regularly. This may be a beach resort, or a vibrant capital city. Maybe your passion is skiing or scuba diving. So, it makes sense to buy somewhere you can enjoy participating in your favourite hobbies. This isn’t a time to experiment. Also, by buying somewhere you’re already familiar with, you’ll find it far easier to navigate the local housing market.
#4 Check rental potential
If you’re planning to rent your property check out the local rental market. Does the property have desirable or unique features like a pool or a special view?
Other things to look for include:
- Is the local area popular with tourists?
- Is there a specific tourism season or is it all year long?
- Outside of the high season, is there another potential rental market you could tap into like foreign workers
- How will afford periods with no tenants like during the low season?
#5 Consider accessibility
If you choose to buy a holiday home in a far-flung destination, it’s likely to cost more to get there and limit its rental potential. Or if you’re looking for retirement bolt home, consider not just your immediate needs but look longer-term. For instance, future mobility might be an issue so look at properties that are on a single floor and have easy access.
Need help selling your house
If you’re struggling to sell your home, and as a result can’t buy your dream home abroad, don’t worry. Companies like House Buy Fast, will purchase your property regardless of its location or condition, taking all the stress out of the process.