Travelling the world on holiday is a great thing to do. The chance to meet local people, explore new cultures and see some amazing sights is never a bad thing, after all. If you also do thorough research on any proposed destination beforehand and source local travel operators, it gets even better. But what if you fancy spending more time abroad each year than a two-week summer break or you prefer to have your own place to stay at?
The ideal solution in this instance is to think about buying a holiday home abroad. For many people, though, buying a holiday home overseas is not all about having somewhere to call your own when away. Many people in the UK are now buying property abroad as an investment. But what are the best tips when buying a holiday home as an investment?
Get your finances in order
As with any investment, you need to have the money available first to buy the asset. This means that you need to review your finances and also set a budget around how much you plan to spend on the property and also how much extra you may need for property taxes, conveyancing fees, etc.
Once this is done, you then need to make sure that you have the required capital to cover the estimated costs. If you find that you do not, then you will need to raise the extra money needed before proceeding. There are various ways that you could do this, but investing in the growing cryptocurrency market is one to think about.
Do your research
It is key to fully research any holiday home investment you make in the same way that you would research a luxurious holiday to Croatia or any other exotic destination. This ensures that you make an informed decision on not only where to buy but also how much property in the country/region is worth at the time. Both of these will be important to any investment you make, regardless of whether you plan to rent out your property or sell it in the future.
Paying a good price locks in more profit for you in the long term, while buying in the right area of any country ensures that it will gain interest from people wanting to buy or rent. Research will also help you find out about the legal side of any purchase you plan to make and any additional fees or taxes that apply.
Accessibility of property
Another great tip when buying a holiday home as an investment overseas is thinking about accessibility. If your property is high up on top of a steep hill or two hours’ drive from the nearest airport, then you may find it hard to attract people to buy it or rent it from you. Of course, it could also soon get very tiring when you stay there at certain times during the year when free! To really get the best return, you will find that most people will prefer a property that is close to an airport and easy to access. You should also factor in how close local amenities are – while some people will value being isolated from the world, you will usually get more interest in your property if it has a beach or shops within walking distance.
Marketing plan
Anyone who is planning to buy a property with a view to making money from it needs to think about how this will happen. While you may think that buying a beautiful home with stunning views is enough to attract people automatically, there is still some effort needed on your part. A good idea is to write out a plan that sets out how you will market your holiday home to potential buyers or those who wish to rent it. From using social media to local agents or well-known sites such as Airbnb, it is wise to have a clear idea of how you will get a return from your investment.
Holiday homes abroad can be a great investment
Real estate has always been classed as one of the safest investments you can make. While this is certainly true within the UK, you can also make money from buying a holiday home abroad. Many people will do this by buying a property to use themselves when needed and then rent it out for the rest of the year, for example. Of course, you may simply choose to sell any property you buy at some point in the future to make money. Whatever route you choose, the above tips should help make buying a property abroad as an investment that bit simpler.
