{"id":11348,"date":"2017-05-25T12:23:16","date_gmt":"2017-05-25T12:23:16","guid":{"rendered":"https:\/\/www.thehouseshop.com\/property-blog\/?p=11348"},"modified":"2018-02-14T04:13:41","modified_gmt":"2018-02-14T04:13:41","slug":"should-you-invest-in-a-holiday-home-overseas","status":"publish","type":"post","link":"https:\/\/www.thehouseshop.com\/property-blog\/should-you-invest-in-a-holiday-home-overseas\/","title":{"rendered":"Should You Invest in a Holiday Home Overseas?"},"content":{"rendered":"\n<!-- SEO Ultimate Plus (https:\/\/seoultimateplus.com) - Code Inserter module -->\n<script async>(function(s,u,m,o,j,v){j=u.createElement(m);v=u.getElementsByTagName(m)[0];j.async=1;j.src=o;j.dataset.sumoSiteId='b68b392479b5981b8acf46565e9fe32a0734fc21a1f7c1e60121eaa6ca1a1c64';v.parentNode.insertBefore(j,v)})(window,document,'script','\/\/load.sumo.com\/');<\/script>\n<!-- \/SEO Ultimate Plus -->\n\n<p style=\"margin: 0cm 0cm 10.0pt 0cm;\"><span style=\"font-size: 11.0pt; font-family: 'Calibri',sans-serif; color: black;\">Soaring <a class=\"wl-entity-page-link\"  href=\"https:\/\/www.thehouseshop.com\/property-blog\/property\/\" data-id=\"http:\/\/data.wordlift.io\/wl0502\/entity\/property;http:\/\/rdf.freebase.com\/ns\/m.05wrt;http:\/\/dbpedia.org\/resource\/Property\" >property<\/a> <a class=\"wl-entity-page-link\" title=\"Price\" href=\"https:\/\/www.thehouseshop.com\/property-blog\/price\/\" data-id=\"http:\/\/data.wordlift.io\/wl0502\/entity\/price;http:\/\/rdf.freebase.com\/ns\/m.01d_1l;http:\/\/dbpedia.org\/resource\/Price\" >prices<\/a> and barely manageable taxes are making it increasingly difficult to invest in <\/span><a href=\"http:\/\/www.cityam.com\/260553\/budget-2017-heres-budget-affect-landlords-and-buy-let\"><span style=\"font-size: 11.0pt; font-family: 'Calibri',sans-serif;\">buy-to-let<\/span><\/a><span style=\"font-size: 11.0pt; font-family: 'Calibri',sans-serif; color: black;\"> properties in Britain. As a response, <a class=\"wl-entity-page-link\" title=\"Landlord\" href=\"https:\/\/www.thehouseshop.com\/property-blog\/landlord\/\" data-id=\"http:\/\/data.wordlift.io\/wl0502\/entity\/landlord;http:\/\/rdf.freebase.com\/ns\/m.02mx_6;http:\/\/dbpedia.org\/resource\/Landlord\" >landlords<\/a> and potential <a class=\"wl-entity-page-link\" title=\"Home insurance\" href=\"https:\/\/www.thehouseshop.com\/property-blog\/home-insurance\/\" data-id=\"http:\/\/data.wordlift.io\/wl0502\/entity\/home_insurance;http:\/\/rdf.freebase.com\/ns\/m.0313mp;http:\/\/yago-knowledge.org\/resource\/Home_insurance;http:\/\/dbpedia.org\/resource\/Home_insurance\" >homeowners<\/a> alike are beginning to scout for other options, one being investments in properties abroad.<\/span><\/p>\n<p><b><span style=\"font-size: 11.0pt; font-family: 'Calibri',sans-serif; color: black;\">What you need to know<\/span><\/b><\/p>\n<p style=\"margin: 0cm 0cm 10.0pt 0cm;\"><span style=\"font-size: 11.0pt; font-family: 'Calibri',sans-serif; color: black;\">If you\u2019re looking for a <\/span><a href=\"https:\/\/www.canstar.com.au\/home-loans\/is-a-holiday-home-a-good-idea\/\"><span style=\"font-size: 11.0pt; font-family: 'Calibri',sans-serif;\">holiday home<\/span><\/a><span style=\"font-size: 11.0pt; font-family: 'Calibri',sans-serif; color: black;\"> where you can stay when you go on vacation and rent out when you\u2019re not there, consider tourist traffic. How popular is a destination and how often do tourist visits? While a property in one of the more popular tourist destinations will have better potential <a class=\"wl-entity-page-link\" title=\"Renting\" href=\"https:\/\/www.thehouseshop.com\/property-blog\/renting\/\" data-id=\"http:\/\/data.wordlift.io\/wl0502\/entity\/renting;http:\/\/rdf.freebase.com\/ns\/m.01y857;http:\/\/dbpedia.org\/resource\/Renting\" >for rent<\/a>, keep in mind all aspects of having property is such a location. You would also have to consider the holiday seasons and learn what periods are the busiest in whatever area you decide on. Of course you\u2019re going to have to <\/span><a href=\"https:\/\/www.ft.com\/content\/8fe70442-54a6-11e6-9664-e0bdc13c3bef\"><span style=\"font-size: 11.0pt; font-family: 'Calibri',sans-serif;\">rule out the possibility<\/span><\/a><span style=\"font-size: 11.0pt; font-family: 'Calibri',sans-serif; color: black;\"> of staying in the <a class=\"wl-entity-page-link\" title=\"houses\" href=\"https:\/\/www.thehouseshop.com\/property-blog\/house\/\" data-id=\"http:\/\/data.wordlift.io\/wl0502\/entity\/house;http:\/\/rdf.freebase.com\/ns\/m.03jm5;http:\/\/dbpedia.org\/resource\/House\" >house<\/a> during those periods if your primary purpose is to make money from renting it.<\/span><\/p>\n<p style=\"margin: 0cm 0cm 10.0pt 0cm;\"><span style=\"font-size: 11.0pt; font-family: 'Calibri',sans-serif; color: black;\">The next <a class=\"wl-entity-page-link\" title=\"Stairs\" href=\"https:\/\/www.thehouseshop.com\/property-blog\/stairs\/\" data-id=\"http:\/\/data.wordlift.io\/wl0502\/entity\/stairs;http:\/\/rdf.freebase.com\/ns\/m.01lynh;http:\/\/dbpedia.org\/resource\/Stairs\" >step<\/a> is to decide whether you want to buy the property outright, pay in full, or if you\u2019re going to finance it. If you decide to finance, you must find out if you qualify for a mortgage <a class=\"wl-entity-page-link\" title=\"lenders\" href=\"https:\/\/www.thehouseshop.com\/property-blog\/loan\/\" data-id=\"http:\/\/data.wordlift.io\/wl0502\/entity\/loan;http:\/\/rdf.freebase.com\/ns\/m.01dnzs;http:\/\/dbpedia.org\/resource\/Loan\" >loan<\/a> from a bank operating in whatever abroad country you\u2019re purchasing your property on. Banks in the UK will hardly, if ever, give you a <\/span><a href=\"https:\/\/www.aplaceinthesun.com\/articles\/2016\/02\/how-to-get-an-overseas-mortgage-in-2016\"><span style=\"font-size: 11.0pt; font-family: 'Calibri',sans-serif;\">mortgage loan<\/span><\/a><span style=\"font-size: 11.0pt; font-family: 'Calibri',sans-serif; color: black;\"> for property in another country, except perhaps if they have a branch in that country. <\/span><\/p>\n<p style=\"margin: 0cm 0cm 10.0pt 0cm;\"><span style=\"font-size: 11.0pt; font-family: 'Calibri',sans-serif; color: black;\">You may decide to rent your property through VRBO but this would cost you significant amounts of time and effort. Plus, you\u2019ll require the services of a local rep to handle upkeep as well maintain your property and make repairs if the need arises. A better option may be to employ a local manager to both manage your property and help you find <a class=\"wl-entity-page-link\" title=\"tenant\" href=\"https:\/\/www.thehouseshop.com\/property-blog\/leasehold-estate\/\" data-id=\"http:\/\/data.wordlift.io\/wl0502\/entity\/leasehold_estate;http:\/\/rdf.freebase.com\/ns\/m.03jg1x;http:\/\/dbpedia.org\/resource\/Leasehold_estate\" >tenants<\/a>. There are also utility bills to factor in, including electricity, water, landscaping, and pool cleaning if your property has a pool.<\/span><\/p>\n<p style=\"margin: 0cm 0cm 10.0pt 0cm;\"><b><span style=\"font-size: 11.0pt; font-family: 'Calibri',sans-serif; color: black;\">Buying in Europe<\/span><\/b><\/p>\n<p style=\"margin: 0cm 0cm 10.0pt 0cm;\"><span style=\"font-size: 11.0pt; font-family: 'Calibri',sans-serif; color: black;\">It\u2019s possible for you to find a better mortgage deal in certain parts of the eurozone with a wide array of mortgage lenders providing much lower mortgage <a class=\"wl-entity-page-link\" title=\"Rates (tax)\" href=\"https:\/\/www.thehouseshop.com\/property-blog\/rates-tax\/\" data-id=\"http:\/\/data.wordlift.io\/wl0502\/entity\/rates_tax;http:\/\/rdf.freebase.com\/ns\/m.03hnzm;http:\/\/yago-knowledge.org\/resource\/Rates_(tax);http:\/\/dbpedia.org\/resource\/Rates_(tax)\" >rates<\/a> than you\u2019ll find anywhere in the UK. Mind you, the Financial Conduct Authority\u2019s reach does not include overseas mortgage brokers, meaning getting compensation won\u2019t be easy in case of any mishaps. Another issue is fluctuations in the exchange rate will affect your repayments if you <\/span><a href=\"https:\/\/www.mortgagestrategy.co.uk\/foreign-exchange-will-property-investors-turn-their-gaze-overseas\/\"><span style=\"font-size: 11.0pt; font-family: 'Calibri',sans-serif;\">borrow in a foreign currency<\/span><\/a><span style=\"font-size: 11.0pt; font-family: 'Calibri',sans-serif; color: black;\">. <\/span><\/p>\n<p style=\"margin: 0cm 0cm 10.0pt 0cm;\"><span style=\"font-size: 11.0pt; font-family: 'Calibri',sans-serif; color: black;\">Also, in some countries, you\u2019ll be required to pay a higher, possibly non-refundable deposit which could be <\/span><a href=\"http:\/\/www.nzherald.co.nz\/business\/news\/article.cfm?c_id=3&amp;objectid=11677196\"><span style=\"font-size: 11.0pt; font-family: 'Calibri',sans-serif;\">as high as 40%.<\/span><\/a><span style=\"font-size: 11.0pt; font-family: 'Calibri',sans-serif; color: black;\"> Wherever you decide to buy, it is essential to have a trusted lawyer or bonded <a class=\"wl-entity-page-link\"  href=\"https:\/\/www.thehouseshop.com\/property-blog\/estate-agent\/\" data-id=\"http:\/\/data.wordlift.io\/wl0502\/entity\/estate_agent;http:\/\/rdf.freebase.com\/ns\/m.02dzpr;http:\/\/dbpedia.org\/resource\/Estate_agent\" >estate agent<\/a> to handle transactions and make payments on your behalf.<\/span><\/p>\n<p style=\"margin: 0cm 0cm 10.0pt 0cm;\"><b><span style=\"font-size: 11.0pt; font-family: 'Calibri',sans-serif; color: black;\">Buying outside of Europe<\/span><\/b><\/p>\n<p style=\"margin: 0cm 0cm 10.0pt 0cm;\"><span style=\"font-size: 11.0pt; font-family: 'Calibri',sans-serif; color: black;\">Again, remember that location is an extremely important factor when purchasing property for rental. If you\u2019re looking to really get away from Europe, look into the <\/span><a href=\"http:\/\/somerfield.com.au\/\"><span style=\"font-size: 11.0pt; font-family: 'Calibri',sans-serif; color: #1155cc;\">vibrant new neighbourhood of Somerfield in Melbourne<\/span><\/a><span style=\"font-size: 11.0pt; font-family: 'Calibri',sans-serif; color: black;\"> or other neighbourhoods in established suburbs with access to attractive facilities. As mentioned earlier, getting a UK bank to finance your <a class=\"wl-entity-page-link\" title=\"Mortgage loan\" href=\"https:\/\/www.thehouseshop.com\/property-blog\/mortgage-loan\/\" data-id=\"http:\/\/data.wordlift.io\/wl0502\/entity\/mortgage_loan;http:\/\/rdf.freebase.com\/ns\/m.0273t5w;http:\/\/dbpedia.org\/resource\/Mortgage_loan\" >mortgage<\/a> may not work, but there\u2019s the option of using an overseas lender with a specialist broker who will provide specific information such as the <a href=\"https:\/\/www.thehouseshop.com\/compare-estate-agents\" title=\"estate agents\">estate agents<\/a> or lawyers to <a class=\"wl-entity-page-link\" title=\"Use (law)\" href=\"https:\/\/www.thehouseshop.com\/property-blog\/use-law\/\" data-id=\"http:\/\/data.wordlift.io\/wl0502\/entity\/use_law;http:\/\/rdf.freebase.com\/ns\/m.05r4j5;http:\/\/dbpedia.org\/resource\/Use_(law)\" >use<\/a> in whichever country you\u2019re buying. <\/span><\/p>\n<p style=\"margin: 0cm 0cm 10.0pt 0cm;\"><b><span style=\"font-size: 11.0pt; font-family: 'Calibri',sans-serif; color: black;\">Buying in the Caribbean<\/span><\/b><\/p>\n<p style=\"margin: 0cm 0cm 10.0pt 0cm;\"><span style=\"font-size: 11.0pt; font-family: 'Calibri',sans-serif; color: black;\">If you\u2019re interested in buying property on islands such as Barbados, Dominican Republic, Costa Rica, Turks and Caicos, or any other Caribbean island, you must know that it might not necessarily be easier or cheaper than buying property at <a class=\"wl-entity-page-link\" title=\"homes\" href=\"https:\/\/www.thehouseshop.com\/property-blog\/home\/\" data-id=\"http:\/\/data.wordlift.io\/wl0502\/entity\/home;http:\/\/rdf.freebase.com\/ns\/m.01l0mw;http:\/\/dbpedia.org\/resource\/Home\" >home<\/a>. Depending on where you look, you may find property that is of great value when compared with the options you have at home, but of course, the definition of \u201cgreat value\u201d is entirely up to you. While islands like the Bahamas and Virgin Islands will be <\/span><a href=\"https:\/\/internationalliving.com\/5-affordable-caribbean-islands-to-live-on-and-2-to-avoid\/\"><span style=\"font-size: 11.0pt; font-family: 'Calibri',sans-serif;\">expensive,<\/span><\/a><span style=\"font-size: 11.0pt; font-family: 'Calibri',sans-serif; color: black;\"> islands like Belize and Dominican Republic are generally less expensive and you will likely have more property options to choose from. <\/span><\/p>\n<p style=\"margin: 0cm 0cm 10.0pt 0cm;\"><span style=\"font-size: 11.0pt; font-family: 'Calibri',sans-serif; color: black;\">Bear in mind that property in the Caribbean would require higher levels of maintenance as a result of exposure to the hot sun, salt air, sea spray, and other environmental factors. Renting in the Caribbean could work out just fine, but you\u2019ll have to investigate thoroughly and properly to understand the area, perhaps by renting a few times there.<\/span><\/p>\n<p style=\"margin: 0cm 0cm 10.0pt 0cm;\"><span style=\"font-size: 11.0pt; font-family: 'Calibri',sans-serif; color: black;\">Deciding whether it\u2019s best to buy property overseas or wrestle it out here in the UK completely depends on you and your circumstances. Property is serious business and can be costly if not done right. The bottom line is to <\/span><a href=\"http:\/\/www.yourmoney.com\/mortgages\/buy-to-let-abroad-the-pros-and-cons-of-being-a-landlord-in-europe\/\"><span style=\"font-size: 11.0pt; font-family: 'Calibri',sans-serif;\">research<\/span><\/a><span style=\"font-size: 11.0pt; font-family: 'Calibri',sans-serif; color: black;\"> extensively what the <a class=\"wl-entity-page-link\" title=\"Market (economics)\" href=\"https:\/\/www.thehouseshop.com\/property-blog\/market-economics\/\" data-id=\"http:\/\/data.wordlift.io\/wl0502\/entity\/market_economics;http:\/\/dbpedia.org\/resource\/Market_(economics)\" >market<\/a> looks like in any country you intend to buy property and take your time to make a decision\u2014hopefully a profitable one!<\/span><\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Soaring property prices and barely manageable taxes are making it increasingly difficult to invest in buy-to-let properties in Britain. As a response, landlords and potential homeowners alike are beginning to scout for other options, one being investments in properties abroad.<span class=\"ellipsis\">&hellip;<\/span><\/p>\n<div class=\"read-more\"><a href=\"https:\/\/www.thehouseshop.com\/property-blog\/should-you-invest-in-a-holiday-home-overseas\/\">Read more &#8250;<\/a><\/div>\n<p><!-- end of .read-more --><\/p>\n","protected":false},"author":41,"featured_media":11361,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"wl_entities_gutenberg":"","_lmt_disableupdate":"","_lmt_disable":"","spay_email":""},"categories":[7,1,13],"tags":[],"wl_entity_type":[602],"modified_by":null,"_wl_alt_label":[],"jetpack_featured_media_url":"https:\/\/www.thehouseshop.com\/property-blog\/wp-content\/uploads\/2017\/05\/Should-you-invest-in-a-holiday-home-overseas1.jpg","wl:entity_url":"http:\/\/data.wordlift.io\/wl0502\/post\/should_you_invest_in_a_holiday_home_overseas_","_links":{"self":[{"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/posts\/11348"}],"collection":[{"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/users\/41"}],"replies":[{"embeddable":true,"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/comments?post=11348"}],"version-history":[{"count":5,"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/posts\/11348\/revisions"}],"predecessor-version":[{"id":14240,"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/posts\/11348\/revisions\/14240"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/media\/11361"}],"wp:attachment":[{"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/media?parent=11348"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/categories?post=11348"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/tags?post=11348"},{"taxonomy":"wl_entity_type","embeddable":true,"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/wl_entity_type?post=11348"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}