Property abroad - business & pleasure ?!?!
Discussion
Hi All,
I have just started to think about getting a holiday home abroad. I would want to soend 8 weeks there and the rest I would prefer to rent out to cover the costs/overheads.
Requirements:
1. Max 7 hours flight from the UK
2. Accomodation for 5 people
3. Property to be no more than 2 hours from airport
4. Sunshine all year round
5. Property & running costs to be as low as possible
6. Max budget of £100k, less would be better
7. Demand for rental to be strong enough to recoupe some costs
8. Not somewhere in the middle of nowhere, there must be local shops, town etc.
I'm sure there are other requirements but just cant think right now.
We did think about Florida (even though the flight is longer) but not sure?
Anyone have experience of this and can give me thoughts and pointers.
Remember I have only just started to think about this and might not have thought of all the problems and pitfalls.....so please educate me.
IceBoy
I have just started to think about getting a holiday home abroad. I would want to soend 8 weeks there and the rest I would prefer to rent out to cover the costs/overheads.
Requirements:
1. Max 7 hours flight from the UK
2. Accomodation for 5 people
3. Property to be no more than 2 hours from airport
4. Sunshine all year round
5. Property & running costs to be as low as possible
6. Max budget of £100k, less would be better
7. Demand for rental to be strong enough to recoupe some costs
8. Not somewhere in the middle of nowhere, there must be local shops, town etc.
I'm sure there are other requirements but just cant think right now.
We did think about Florida (even though the flight is longer) but not sure?
Anyone have experience of this and can give me thoughts and pointers.
Remember I have only just started to think about this and might not have thought of all the problems and pitfalls.....so please educate me.
IceBoy
One thing I'd add being I this situation myself.
Once you do buy you will always have to go there on holiday to get the value out of t. Never anything different always the same if your happy about that fine if not reconsider.
I have two places over seas one I rent out the other I don't. We only stay in one of them why? Well we keep lots of our stuff in there ad also don't want to hare our mattress with many many others as the mattress can be ruined in two years a hassle to change. Small issue but something to consider
Make sure you buy in an area where there is a close big airport services by all the carriers else you may find smaller places stop being serviced by UK carriers then your up s
t creek.
You'll need a gardener a cleaner and a handyman to sort things out.
For £100k the rental will not be great and honestly with hindsight the reward isn't worth the risk.
We really like our place and have used it for the past 8 years usually twice a year (but sneak in another holiday elsewhere too).
Think hard gets lots of those investment magazines make the choice then stop and think very hard again. Selling a place overseas can take YEARS to sell even if you drop the price by 50% so be careful. It's a long game.
Personally I'd spend £30-40k on lockup garages in the UK easy rental money minimal involvement as these are nearly always long term rents with high yeilds. Then use that income to pay for those nicer holidays your after.
Once you do buy you will always have to go there on holiday to get the value out of t. Never anything different always the same if your happy about that fine if not reconsider.
I have two places over seas one I rent out the other I don't. We only stay in one of them why? Well we keep lots of our stuff in there ad also don't want to hare our mattress with many many others as the mattress can be ruined in two years a hassle to change. Small issue but something to consider
Make sure you buy in an area where there is a close big airport services by all the carriers else you may find smaller places stop being serviced by UK carriers then your up s
t creek. You'll need a gardener a cleaner and a handyman to sort things out.
For £100k the rental will not be great and honestly with hindsight the reward isn't worth the risk.
We really like our place and have used it for the past 8 years usually twice a year (but sneak in another holiday elsewhere too).
Think hard gets lots of those investment magazines make the choice then stop and think very hard again. Selling a place overseas can take YEARS to sell even if you drop the price by 50% so be careful. It's a long game.
Personally I'd spend £30-40k on lockup garages in the UK easy rental money minimal involvement as these are nearly always long term rents with high yeilds. Then use that income to pay for those nicer holidays your after.
Welshbeef said:
One thing I'd add being I this situation myself.
Once you do buy you will always have to go there on holiday to get the value out of t. Never anything different always the same if your happy about that fine if not reconsider.
I have two places over seas one I rent out the other I don't. We only stay in one of them why? Well we keep lots of our stuff in there ad also don't want to hare our mattress with many many others as the mattress can be ruined in two years a hassle to change. Small issue but something to consider
Make sure you buy in an area where there is a close big airport services by all the carriers else you may find smaller places stop being serviced by UK carriers then your up st creek.
You'll need a gardener a cleaner and a handyman to sort things out.
For £100k the rental will not be great and honestly with hindsight the reward isn't worth the risk.
We really like our place and have used it for the past 8 years usually twice a year (but sneak in another holiday elsewhere too).
Think hard gets lots of those investment magazines make the choice then stop and think very hard again. Selling a place overseas can take YEARS to sell even if you drop the price by 50% so be careful. It's a long game.
Personally I'd spend £30-40k on lockup garages in the UK easy rental money minimal involvement as these are nearly always long term rents with high yeilds. Then use that income to pay for those nicer holidays your after.
A lot of good sense here! Just the gardener and handyman is enough hassle in itself! We've been going for 5 years and have just lost our 2nd gardener/handyman Once you do buy you will always have to go there on holiday to get the value out of t. Never anything different always the same if your happy about that fine if not reconsider.
I have two places over seas one I rent out the other I don't. We only stay in one of them why? Well we keep lots of our stuff in there ad also don't want to hare our mattress with many many others as the mattress can be ruined in two years a hassle to change. Small issue but something to consider
Make sure you buy in an area where there is a close big airport services by all the carriers else you may find smaller places stop being serviced by UK carriers then your up s
t creek. You'll need a gardener a cleaner and a handyman to sort things out.
For £100k the rental will not be great and honestly with hindsight the reward isn't worth the risk.
We really like our place and have used it for the past 8 years usually twice a year (but sneak in another holiday elsewhere too).
Think hard gets lots of those investment magazines make the choice then stop and think very hard again. Selling a place overseas can take YEARS to sell even if you drop the price by 50% so be careful. It's a long game.
Personally I'd spend £30-40k on lockup garages in the UK easy rental money minimal involvement as these are nearly always long term rents with high yeilds. Then use that income to pay for those nicer holidays your after.
I'd add I put in £100k during the good olde days
Will I get my money back? Well right now I doubt I could sell for any price - I wouldn't sell for a joke price as such I'm in it for the long game pointless selling and thankfully I don't need to sell (though we'd be mortgage free now if I could have that money back).
Thankfully it's a place we really like and we use it often it's also family friendly and I can see our little un using it when she gets older dead cheap hols only flight cost.
Think very hard and never rush with these things. £100k buys a lot of 5* holidays and there is zero risk to you.
However if you could buy a dirt cheap Greek villa or Spainish Villa with pool a distressed purchase then hmm it's interesting and a potential good idea long term. Think Golf courses always then grounds are tended for you
Will I get my money back? Well right now I doubt I could sell for any price - I wouldn't sell for a joke price as such I'm in it for the long game pointless selling and thankfully I don't need to sell (though we'd be mortgage free now if I could have that money back).
Thankfully it's a place we really like and we use it often it's also family friendly and I can see our little un using it when she gets older dead cheap hols only flight cost.
Think very hard and never rush with these things. £100k buys a lot of 5* holidays and there is zero risk to you.
However if you could buy a dirt cheap Greek villa or Spainish Villa with pool a distressed purchase then hmm it's interesting and a potential good idea long term. Think Golf courses always then grounds are tended for you
Welshbeef said:
However if you could buy a dirt cheap Greek villa or Spainish Villa with pool a distressed purchase then hmm it's interesting and a potential good idea long term. Think Golf courses always then grounds are tended for you
Where would you find a distressed purchase? I would be interested in a plcae on a Golf course, but at the right priceAnd don't forget tax... For our French house we have to pay the tax d'habitation (literally a tax to live in a house), tax fonciere (council tax), tax de sejour (holiday tax, customers are liable) and income tax. Then declare all of that to HMRC so they can see if they can cream a bit off too.
Dealing with the French taxman is not easy!
Dealing with the French taxman is not easy!
Puggit said:
And don't forget tax... For our French house we have to pay the tax d'habitation (literally a tax to live in a house), tax fonciere (council tax), tax de sejour (holiday tax, customers are liable) and income tax. Then declare all of that to HMRC so they can see if they can cream a bit off too.
Dealing with the French taxman is not easy!
Puggit makes some valid points here, notwithstanding the issues of maintenance, upkeep, breakages and staff turnover. In your position I'd look at a BTL in the UK as your first priority and use the income for holidays instead or, better still, invest the income.Dealing with the French taxman is not easy!
I'd also be extremely wary of buying in Spain unless you really know what you're doing with significant experience. I've been involved with the Spanish market for nearly ten years and I've nearly caught a cold several times despite thinking I've seen all there is to see!
Probably not what you want to hear but well intended nonetheless.
We had £20k to spend. Thought holiday home in Spain would be great. Apartments can be had for about £50k so bargain!
However, buying at the cheaper end do we want to restrict our holidays to what would have been a cheap rental? No
Renting is difficult in such an over supplied market and the horror stories we hear of people unable to sell over there.
Next option, buy terrace in cheap part of mcr for £80k (£60k mortg) as buy to let. Problem is we are adding £60k to our mortgage debt.
Opted to shove the £20k off the mortgage instead
Cheap holiday villas and BTL's in the UK are not likely to rise in value in next few years so own mortgage is priority (that's what we end up deciding all the time anyway)
However, buying at the cheaper end do we want to restrict our holidays to what would have been a cheap rental? No
Renting is difficult in such an over supplied market and the horror stories we hear of people unable to sell over there.
Next option, buy terrace in cheap part of mcr for £80k (£60k mortg) as buy to let. Problem is we are adding £60k to our mortgage debt.
Opted to shove the £20k off the mortgage instead
Cheap holiday villas and BTL's in the UK are not likely to rise in value in next few years so own mortgage is priority (that's what we end up deciding all the time anyway)
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