The opportunity looks enticing, but when considering purchasing a property outside of your home country, beware of the pitfalls which could cause concern in the future.
According to overseas property and finance expert, Simon Conn (www.simonconn.com), the main issues are:
Location
Purchasing on the coast can seem attractive, but the cost is normally much higher than buying further away, although the number of potential tenants may be higher and rentals received could outweigh the savings of purchasing inland.
Also, if you purchase inland, if it is too far away from the coast you are restricting the type of tenants to those who have a car, who prefer more rural settings and, if they have access to a pool, families with very young children who may prefer the quieter setting over the hustle and bustle of the beach.
Seasons
Is the property going to be full year-round? If it is on the coast, consider what the weather is like throughout the year and whether rentals have to be adjusted accordingly. If inland, is access available throughout the year, or, if in the mountains, is it suitable for both winter and summer visitors?
Changeovers
Who will look after the tenants when they are staying at your property and when they eventually leave? And who checks for any breakages, cleaning of the premises and laundry?
Licences
Check whether you are allowed to rent in the area and, if you are, whether a licence is required. Do the rules/licence change if the rental is on a short/holiday or long-term basis? These conditions should be checked with your local lawyer.
Maintenance
Who will ensure your property is regularly maintained, for example painting and minor repairs? This includes fixtures, fittings and electrical items around the house, as well the building itself. Allow time between tenants staying for major repairs to be carried out.
Emergencies
How easy is it for you or your designated representative to sort major problems, such as fire, flood and injury to a tenant while staying at the property?
Insurance
Does the buildings (and contents) insurance cover you for tenants in the property and does this change depending on whether it is a short/holiday/long-term let? Again, check with your lawyer to avoid any headaches.
About Simon Conn – overseas property and finance specialist
Simon Conn has over 35 years’ experience in the overseas property market and has worked successfully during that period for a number of major financial services companies.
He is especially well known within the overseas mortgage industry and is a regular media commentator on matters relating to the purchase or refinancing of overseas property.
Simon has developed many connections within the overseas property and finance industry, resulting in a worldwide network of leading specialists to assist with local issues such as legal, insurance and currency exchange.
The most popular property hotspots around the world that Simon is currently involved in include parts of Western & Eastern Europe, Australia, Canada, New Zealand, South Africa, Thailand, USA & the Caribbean. However, he has been involved in arranging finance in over 50 countries.
Simon can be contacted on:
T: + 44 (0) 7739 033266
E: simon@simonconn.com
W: www.simonconn.com
Post: PO Box 2200, Shoreham-by-Sea, West Sussex, BN43 9FN
SKYPE: slc5282
WhatsApp: + 44 (0) 7739 033266
Linked-in: http://uk.linkedin.com/in/simonconn
Twitter: @simonlconn
