Property - overseas buy to let
Have you ever been on a holiday abroad and dreamed of your own home there? Well this dream could become a reality, and make you a profit. Property prices in many countries are much lower than in Britain and renting out your holiday home when you are not using it may not only help to cover the costs of buying and running it but may also make you a profit. However, you must do your homework because other countries have different laws, procedures and legislation for buying property which may affect ownership and cost. For example, local taxes, legal and land registry fees and VAT can add up to 15% to the cost of an overseas property and so you must remember to add this to the purchase price.
When choosing a holiday home for rent, more than ever is the theme 'location, location, location' true. Not only for the property itself but also for the country. So do your research thoroughly. Consider the rent that can you charge, and when. Start by checking the seasonal prices of other similar rented properties in the area (brochures, letting companies, the internet). The sum you can get will vary from week to week, the peak of the season producing the highest rents and greatest occupancy.
Calculate the cost of ownership.
Apart from the capital purchase you will community taxes, water rates, electricity, etc.. to pay. And allow for other government taxes. The Spanish Government, for example, assume you have a certain level of rental income and tax you on it. If you earn more you should declare it, but you do not get a refund if you earn less.
You will probably need to employ a holiday management company. Some offer a complete service of renting and managing the property in your absence (cleaning, fresh towels and bedding) but charge high commission rates for finding renters. Alternately, you could handle the rentals yourself and employ someone to look after the domestics.
Finally be sure the rent you can charge will cover all these costs.
The internet is becoming one of the most popular ways of finding and booking holidays so if you want to tap into that vast source of potential customers you could have your own web site set up. You could also place ads in magazines and newspapers but they are only visible for the duration of the publication. Once you are up and running, keep in contact with satisfied customers because you may benefit from repeat bookings.
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