4 Must-Ask Questions Before Purchasing A European Holiday Home
Following on from the coronavirus pandemic, many property investors may now find themselves considering buying a holiday home abroad, providing an escape route should we enter into another nationwide lockdown in the future. Alternatively, many homeowners may also now be wanting to put their hard earned pandemic pennies to good use by upping sticks and starting afresh somewhere new with a European holiday home.
Whatever the reason may be for wanting to purchase a holiday home abroad, there are a few key questions to ask yourself before you get started with your search.
With this in mind, we thought we’d compile a brief guide highlighting all you need to know, giving you the freedom to make sure that your decision to move is the right one for you.
Why do you want to move?
When it comes to buying a holiday home abroad, it’s important to know why you are wanting to move. Are you buying a second home? A permanent home? A holiday-to-future-retirement home? A buy-to-let? Or simply looking to invest?
Whatever your reasons may be, it’s important to weigh up what you could or couldn’t be missing out on by opting to move. As such, make sure to set clear objectives for what exactly you are looking for – that way, you’ll feel a lot better when it comes to searching for and eventually finding your dream property.
Where do you want to buy?
While it may sound fairly obvious, knowing where exactly in Europe you want to purchase a holiday home could make a big difference to both how happy you feel there and how cost-effective a purchase decision it is.
If, for example, you are looking to buy somewhere you have somewhat of a pre-existing romantic affiliation with and are happy to move there regardless of needing to learn a new language, then go for it.
However, if you are looking to purchase somewhere as more of an investment opportunity, it’s important to think carefully about where you’re buying since some markets will likely see a higher yield and return on investment than others.
Properties in Marbella, for instance, are expected to see asking price adjustments of between 10% and 20% as a result of the pandemic. Therefore, depending on how well the market is performing at the time, you could either drastically overspend or pick up a bargain.
Can you afford it?
While on the topic of asking prices, many people forget about some of the unexpected financial implications of purchasing a property abroad.
From the overall moving costs to the potential need for a VISA or work permit, purchasing a holiday home in Europe isn’t always as simple as it seems – especially now that we have left the EU.
What’s more, depending on the mortgage lender you go with, the total price you pay for your European holiday home can vary hugely depending on how well the exchange rate is performing on the day of completion. As such, it can be a bit of a lottery as to whether you are landing a good deal or not.
How will you maintain it while you’re back home?
If you are thinking of purchasing a property abroad as a second home for you to travel to as and when you please, it’s important to consider how it will stay safe and secure in your absence.
Letting it out as an Airbnb may be a great way to subsidise the costs a little, but this can also involve a lot of extra hassle, wear, tear and potential extra expense in terms of cleaning and maintenance costs.
Plus, if you do plan on renting it out, it’s generally a good idea to make sure the area you are buying in is a popular location for rentals. The last thing you will want, after all, is to rely on your holiday home bringing in some extra income in an area that has little to no rental demand.
Buying a holiday home abroad can be an incredibly exciting thing to do but, before deciding to set sail once and for all, it’s important to remain cautious.
Therefore, make sure to do your homework in advance and meticulously look at all the fine details. That way, you’ll be able to rest easier in the knowledge that you made the correct decision.