A second home abroad can be one of the most treasured investments you’ll ever make. Once you’ve found that place in the sun that you dream of returning to year after year, it makes sense to look for a beautiful property that can become your family’s home away from home. Whether you’re buying with a view to move there full-time in the future, or hope to attract renters when you’re not staying there yourself, there are some key steps that you should follow to ensure you’ve found the right property for you.
Decide whom you’re buying it for
A recent survey of holiday home sales in the US found that Americans purchasing properties abroad cited a wide range of intentions for their new home. 80% said that they wanted to use theirs as a family retreat, 23% planned to rent their property, 23% saw a promising investment opportunity and 27% intended to make a permanent move abroad in the future. All these are good reasons, but it’s important to establish which ones apply to you. If you plan to rent your retreat when you and your family aren’t using it, you’ll need to consider how the property will be maintained and managed in your absence. It’s often easier to make money if you choose something that’s professionally managed locally.
Seek professional advice
Each country has its own laws and regulations for foreign buyers, which you’ll need to untangle before purchasing your property. The tax implications of a second home for personal use and a business investment in rental property are usually different, so talk through your ideas with your financial adviser. They will be able to help you to consider your options, highlighting tax obligations and any deductible expenses. It’s also helpful to work with an international real estate company, to ensure that your agent has a thorough understanding of the relevant legislation both at home and abroad.
Research the location
Location is the most important factor in buying any property, but this is particularly true of holiday homes. Free from considerations like being near the best school or commuting to work, this decision should be all about you and your passion. Whether your dream island looks more like Mallorca, Capri or Ibiza, it’s all about finding that beautiful scenic spot that you can’t wait to return to each year, so this decision should primarily be down to you and your instinct.
However, there are still some practical considerations. Proximity to beaches or mountains will maximise your investment, whether you’re considering rental potential or resale value. If you do intend to rent, it’s usually best to avoid anything too remote to make sure that your guests aren’t put off by the journey..
Speak to Engel & Völkers
With shops in desirable holiday destinations all over the world, E&V agents can ensure that every part of your purchase runs smoothly. You can find our experienced, friendly agents everywhere from Newport Beach to Kitzbühel, so whether you intend to spend your holidays sunbathing or skiing, Engel & Völkers are here to help.