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If you are considering buying an overseas property, then there are a few things you need to think about. For a start, where do you want to buy your property? What amenities do you need? How much is your budget?
As investing in a holiday home is expensive you either need to be sure that you will want to visit often enough to justify the expense or, you will need to be certain that your property will be popular with tourists.
Whatever your reasons for buying an overseas property, here are a few do’s and don’ts to get you started.
Do Consider Renting Your Property to Tourists in Peak Season
If you are buying your property as a holiday home for you and your family, you might be tempted to take it for the full peak season. While this is completely your decision, you should take into account when the season is and whether there will be any letting opportunities outside these dates.
Some tourist hot spots only open for a few months of the year after which the town pretty much empties out. If you want your property to work for its money, then you need to make sure that the times you are willing to let it out are going to be popular with tourists.
Do Remember You Have to Tell HMRC
Your property might be abroad, but if you are letting a property you need to let HMRC know and pay tax accordingly. You will only be taxed on your profits, so take this into consideration when you advertise a certain price. If you have an idea of how much you want to take home, have a look at the taxes you will be charged to influence the price you charge.
Don’t Take on Too Much
While fixer-uppers are always tempting (whether you are buying here or abroad) do bear in mind that you won’t necessarily be onsite to deal with any problems that might come up. However cheap a fixer-upper might be, you are usually walking into the deal blind and costs can quickly spiral out of control if you aren’t careful.
If you want to invest in foreign property, a much better idea is to go to a trusted vendor and make sure that you have the site thoroughly examined before you buy. This might be a little more expensive, but given the risks you are avoiding, it seems a worthwhile extra spend.
Don’t Forget to Have Fun!
When you are making an investment, it can be all too easy to forget that the point of this property is to have somewhere you can retreat to as a family to have fun. Yes, you should look at the profits you can make and the worthiness of the investment on paper, but you also need to let your heart do some of the thinking too. Besides, the chances are that if you think you and your family will have a good time here, then other tourists will think the same.