As the pound continues to grow in strength, holidaymakers are thinking about traveling a bit more than usual. But there are a small but growing number of travelers that are thinking about taking the ultimate step: getting their own vacation home. There are some obvious pros and cons to it. For example, one of the top benefits of buying a vacation home outright is that you have a space that’s always yours. So even if a travel destination gets super popular and rooms are hard to find, you can just arrive and come home to your space. It’s always set up the way you like it, and you don’t have to share it with anyone if you don’t want to.
But there are some pitfalls that you need to avoid. One, it can look cheap on the surface to have a vacation home, but this is still another property that you’re going to have to maintain in order to enjoy it. Many people believe that the maintenance costs are going to be less because they’re not going to be there as much. You might be surprised what a vacation home requires, simply because you’re not there as much. In addition to the maintenance, you may have property taxes due every year to a completely different country, and you have to make sure that’s settled. Living in the country will also require the usual expenses. Who handles the electricity servicing in that area? What about the water? Who takes care of the Internet? You’re going to have to think of it like a second home, more than a vacation home that you abandon for months on end. If you’re really far away from the new home, you’re going to need to think about how to get back and forth to it. Are those costs very expensive?
A strong pound does bring bargains, but with so many holidaymakers looking around in the property market, there are still opportunities to be scammed. To avoid being a victim, you want to make sure that you read every single document thoroughly. Paying for things to be translated properly into English is a good idea. Once you sign for a document, whatever it says becomes legally valid. So if you’re not looking to fall into that trap, now isn’t the time to skimp on professional help and advice.
Speaking of professional advice, you want to get someone that knows the area. While it’s true that some people are able to buy and handle property without getting a real estate agent involved, don’t try to be one of them. The local agents know the market extremely well, and they can help you out.
Financing is going to be the major issue that you face if this is a dream you have. You’re going to need to ensure that you either have cash or that you can remortgage your home. If you try to pursue a separate mortgage for the vacation home, youíre going to need a big down payment to make it all work. So don’t be surprised if things are more difficult than it appears.
If you go for the additional mortgage, the lender will want to make absolutely sure that you can afford to take on the payments. While you may hope that you can just rent it out while you don’t use the property, lenders aren’t keen to just use that figure. There are a lot of variables that can determine whether or not you’ll be able to get renters.
Overall, is it worth it? Should you go and get your dream home in another country? If you’re willing to deal with the red tape and delays, then it’s definitely a possibility.