8 Important things to look for before buying your beautiful new holiday home
You’ve worked hard for years, your little babies are growing up, and you’ve decided that now is the time to invest in a holiday home. Finding real estate abroad is an exciting time. If you have a culture or special place that you love to travel to, making your home-from-home official by purchasing property there can set you and your family up for a lifetime of beautiful vacations.
Not only will purchasing a new holiday home allow you to have a reliable and beautiful place to holiday, in the long run, it will save you money in accommodation fees. You’ll also only be limited by how long you can stay in that country on a holiday visit, as opposed to how long you can afford hotels for. If you improve the property over months, you might also increase the property value. This makes a great asset worth much more when you sell it in your retirement. Investing money in real estate can be one of the best ways to have a hard, stable money saving resource.
No matter what you enjoy, long strolls on the beach or extreme winter sports, the checklist you need to assess your potential new property with should be thorough and without flaw. This list will help you do just that. Without further ado:
The obvious first place is, where would you like to relocate? Somewhere new or somewhere you’ve visited for years? Think about this carefully. A holiday home will likely be with you for years, maybe even decades, so you need to both be so fascinated with the culture you’re locating your house in that you’re willing to spend the next years learning about it or find somewhere you consider even more intriguing to locate. If you really enjoy extreme winter sports and you purchase the holiday home in your mid-forties, it’s likely that by your sixties playing extreme winter sports will not be a good idea, or even desirable.
Consider this long-term viewpoint over your initial desires. Property is always an investment, no matter the practical uses, and you want the most bang for your buck, both in resale value and utility. If the country you’re hoping to buy the property in is likely about to suffer an economic collapse, maybe hold off for now. Do plenty of research and forecasting, and try to pick the wisest option. You’ll be sure that you have the most sensible property you can have when you think in this way.
With the foresight stipulation in mind, you should assess your size requirements. Are you planning on bringing your children and pets to the home, or your entire extended family or work colleagues? Are you purchasing it so your children can one day have parties there with their friends? How often are you going to visit it?
All of these questions happily contribute to the size requirements of any property that you are hoping to buy. What might work for you this year might not work for you five years down the line. Also, take into consideration the value of the property. Will it be worth purchasing a larger property now while the currency conversion rate is competitive so the size will pay off as a large investment when you come to sell it? This might justify purchasing a property that’s slightly more than your needs would first suggest.
How desirable is the home? What are the amenities like? Are you going to use these amenities? Having a swimming pool in a property isn’t particularly worth paying for if you’re only going to spend Christmas celebrations there. However, if you’re of the mind that you’ll let the property out during the time you’re not there, this can actually be a great amenity to have.
Websites like Airbnb allow you to provide tourists with a holiday destination and get a return on your investment. It’s always good having a form of passive income and provided you maintain the property well with trustworthy cleaning services, you might have a handy little cash cow.
This is also ethical for the destination you’ve purchased the holiday home within. This is because an empty property being paid for by someone abroad doesn’t provide accommodation or tourist investment in the local community, but letting it out will because it will constantly be in use for tourists spending their hard earned money abroad. This might not mean much for your pocket, but the locals will surely appreciate it.
Not only do you need to purchase a holiday home that’s suitable for your needs as has been listed above, but you have the added contingency of making sure it’s perfect for your family. If you have a newborn, making sure the property is correctly insulated can prevent them from catching illnesses they’re susceptible to. Do you plan to invite your friends to stay? Extra beds for them and their children are a must too. Consider every single use you might have for this property, and plan around it.
How easily can you purchase it? Are there any stipulations in the contract? How is the land, and how are the foundations the house rests on? Could the house use some work before you can declare it ‘home-worthy?’ This is your chance to pour over the contract before you sign it. Make sure there aren’t any nasty hidden costs or repairs you need to make that the property sellers are neglecting to tell you.
How much maintenance does the property need every year? If the location experiences heavy rains or snowfall, upgrading the drain or roofing structural integrity might be a regular occurrence. Factor these contingencies into your long-term and short-term cost and planning decisions that you make. A cheap property might not seem so cheap when you have to pay $6000 a year keeping on top of it. This includes little things like pool cleaning, general cleaning, security or insurance payments if you let the property out year round.
How secure is the property? If you’re going to let it out, you have a responsibility to keep those letting the house safe. Of course, they are also responsible for their own sensible self-protection, but making sure the house has adequate security features like strong locks, secure windows, and even CCTV coverage can help keep you covered and insured if any legal ramifications were to take place as a result of robbery or damage.
Insure the property effectively with a great package that prepares for any eventuality, even freak occurrences. For example, if your home is near surfing destination, don’t rule out the possibility of freak waves damaging the boundaries of your property. Take a little time thinking of the ‘what-if’ scenarios, and you’ll receive better peace of mind for the attempt.
Check out the trends of buying power in the area you’re choosing over the last fifteen years. Check the news of the country it’s in. Make sure the country is stable, the economy is secure, and the holiday home market is thriving before you make a purchase in that area. This will give you plenty of foresight and predicting power to ensure your investment isn’t subject to negative value fluctuation if you needed to sell.
There are many things to look for when purchasing a holiday home, but on the whole, you’ll know when the right one presents itself. This property buying instinct seems ubiquitous among people who are genuinely searching for a home, and finding somewhere to enjoy your free time with your family is no different. Make sure you read over all the contracts, use your best sense and right feeling, and you’re sure to find the holiday home of your dreams.