If you’re looking at buying a home overseas but aren’t sure whether you can afford to? Think again. With interest rates in Europe as low as 2.5% and many banks offering interest only loans with deposits as low as 20%, it has never been easier and cheaper to buy a holiday home.
If you can raise the cash to pay a deposit, you can almost certainly afford to buy. Re-mortgaging your home is the way many new second home and holiday home buyers are getting a foot in the buy-to-let market. If you rent or let out your holiday home when you’re not using it, the rental income will more than likely cover or be a great help towards the loan repayments and with capital growth of around 10%-30% per year, it’s almost impossible to go wrong.
Be careful, do your research and take advice. It can be easier than people think, be aware, if you’re new to buying overseas agents will sometimes take advantage of your lack of knowledge.
Speak to people who have already bought overseas, take their advice and ask them who they recommend you speak to.
Location is one of the most important factors to consider when buying abroad. Many new build companies are offering villas and apartments at incredibly low prices but just because the property is nice, doesn’t mean the area will be as well. The areas where prices are going up the fastest are usually the areas where holiday makers want to rent. Cheap locations can have potential but that’s not always the case, so take the advice and do your research.
Consider all the costs.
There is not just the cost of buying to think about. Legal Fees, Agent Fees, TAX, Maintenance, Insurance, Service Charges and Council Tax are all important things to consider. Take advice and find a good lawyer who speaks English.
If you are considering renting / letting your holiday home, great, you’ll not regret it. Here are some guideline and tips to help you when preparing your property for rental, ensuring you avoid those familiar complaints and problems. |
