With time, your dreams may change a bit from dreaming about sailing the seven seas and exploring new places to simply being content with that promotion and having a bit more money to spend. Other dreams, on the other hand, tend to stay the same; waking up to the sound of waves, going for a swim in the ocean early in the morning, and eating breakfast with a stunning beach view are dreams that somehow still seem a bit unachievable.
Depending on where you are financially speaking this is something that can definitely come true, though, as long as you know how to do it. Here are a handful of excellent tips in terms of obtaining your first holiday home somewhere like real estate Marbella and even making a bit of money of it down the road as well.
That way, you might be able to smell the ocean and taste that fresh seafood a bit sooner and without making any financial hiccups along the way.
First: Where should you invest?
Sure, you already know that you’re looking for a holiday home – but there are a lot of places around the world that are perfectly suited for beach holidays. The Mediterranean countries, for example, are known for their excellent weather and laid back culture but a lot of prospective property investors have met the wall when trying to buy properties to rent out in some of these countries.
Countries such as Spain, for example, make a lot of money from tourism. When foreign investors buy properties which they rent out to holiday goers, they are also decreasing the money that the local hotels and holiday accommodations, in general, would have been able to make. To solve this, many countries are restricting property owners who would like to rent their home out – and they’re quite ruthless when it comes to Airbnb too.
It’s important that you first read up on whether or not they would be happy to sell your property, first of all, before figuring out if you’re even allowed to rent it out once it’s yours. If you would just like to own this property without renting it out during the high season, you will, of course, have a whole lot more options.
With this in mind, you can start to scratch Greece off your list unless you’re an EU-citizen. You might still be able to do it, though, but keep in mind that the process is a bit trickier than in many other countries. If you have your heart set on Greece and are willing to go through the trouble, you can still absolutely go for it.
Thailand, on the other hand, is difficult as foreigners are not allowed to land. The only way for you to own land here is to form a corporation where 51 % is owned by Thai nationals. Otherwise, you’ll only be able to lease land which, in turn, is rather restricted as well. Read more about owning land in particularly hospitable countries here to make it a bit easier.
Next: How can I get funding?
A part of deciding on the best country for you to invest in is, of course, to figure out whether or not you will be able to get funding for it. Most of us have difficulties finding the money for an entire property readily available in our bank accounts, after all, and most banks at home will hesitate with giving you a mortgage for properties abroad – while many banks abroad will feel the same way in terms of funding a foreigner.
Does this mean that you won’t be able to finance a holiday home unless you have a lump sum of money saved up to pay for the entire land in one go? Luckily, this is not always the case. Most people buying a holiday home abroad will take out a second mortgage on the home they already own.
That way, they can depend on the bank they’re used to at home while still keeping their current home and being able to finance a holiday home – it’s a win-win, in either case.
When you’re not able to do this, you might have to look for options elsewhere. Have a chat with your bank, first of all, about the situation and they might be able to help you out with a loan if you have a good relationship with them and are known as a reliable client. Otherwise, search around in the country you’ve set your eyes on and see if you’re not able to get a loan from them.
While it is more difficult than simply taking out a second mortgage, it’s not impossible – and if other foreigners have invested in the country before you, you should be able to do it.
You can start by having a look at HDB BTO 2018 as soon as you’ve made up your mind, by the way, as these properties offer a bit more flexibility in terms of funding.
Someone needs to look after your property
Finally, it’s a good idea to keep the future in mind as well when you’re about to start this new chapter. You won’t be sitting on that balcony and sipping coconut water the whole year, after all, and the property might stand vacant from time to time.
Whether or not you’d like to make a bit more money by renting it out to others, you still need to look after the property and get the regular maintenance done to ensure that everything is in order.
This is, on the other hand, not always that easy when you live in a different country and just visit your property from time to time during the holidays. In these situations, it’s important that you have a real estate agent who can drop by and have a look around – and especially if you’re renting it out.
It would be frustrating to get various calls from those tenants in the middle of the night, after all, seeing that you won’t be able to do much about the problems they might have with the property.
If you have become friendly with people living in the area, you could be able to save a few bucks by hiring a local handyman to look after your flat as well. Local contractors will often be happy to have a bit extra work and the opportunity to make a bit more in the area they live in, so have a chat with those you know in case they can refer you to someone.
Thanks for stopping by today, I hope this post has given you some help on deciding whether to invest in a holiday home.
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