If you’ve got some money tucked away for a rainy day, it might be a good idea to buy a vacation home away from home. Not only will it be a summer or winter haven for you, but it could also easily become a strong second income. You’ll find more about that further down. But first, you’ve got to buy the property, and the first decision you’ll make is choosing where to buy.
Finding The Right Location
If you want to buy a holiday property, it doesn’t have to be in your home country. In fact, we’d strongly recommend you choose a property in another country, perhaps across the pond? In particular, we suggest you choose a property in a popular tourist destination. Or, somewhere that is fast becoming popular with tourists. The reason for this ties into turning this property into a second income. You should definitely be looking at any property that has great curb appeal such as oceanfront apartments.
Exchange Rates And Market Falls
You should be thinking about two issues when buying a property abroad. You should look at the exchange rate as well as the housing market in the area. The ideal time to buy would be when your currency is strong, and the market is low. Watch out for when there are big slashes to homes in the area. This will usually occur in the spring months before summer begins, and people start flocking to the tourist destinations. If your currency is strong, that is the time you should begin to think about buying. You will have to contact a real estate agency. As well as dealing with the sale of the property, they will make the purchase easier for you. But, beware of agents that are looking to take advantage of foreign buyers. In Spain, this is particularly common, and you must ensure you are dealing with a reputable company.
Buying The Home
To buy the home, it’s just like buying a house. You can put down a deposit, rather than paying for the whole property upfront. You’ll then be able to pay the rest of with a mortgage. But, you would be better off saving more money so that you can pay for most of the property upfront. That way you can make all your money back easily in the first year. However, before you do that, you must be aware of hidden bills. A lot of holiday properties are in gated communities. That means you will have to pay an upkeep bill for the surrounding area. But, this is what makes these properties so attractive to tourists. They are secluded and well maintained.
Making Money Off Your New Holiday Home
Finally, you’re going to be thinking about how you can make money back on your new property. The best way to do this is to rent it out when you are not using it. You may not always make a profit, but you’ll certainly be able to pay the bills, so the upkeep does not eat into your income.
Photo by Hans Braxmeier
Mia Guerra
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