Thinking Of Buying A Second Home Abroad? The Top Considerations To Take Into Account
Second homes are the ultimate symbol of success and also a great way to make the most of your free time. By owning a place in a country that you love to visit, you’ll be able to plan more frequent trips and feel assured that you always have a place to stay that you’ll love.
Vacation homes have a long history, but they’ve evolved significantly. Today, second homes come in a range of shapes and sizes to suit all needs.
Even though there are affordable holiday home options and ways to recoup your investment by renting the property out when you’re not using it, owning a second home is still an expensive endeavor.
As such, you need to take the time to review all your options and find the best one that works for you and your family.
From property type and size to ongoing costs and location, there’s a lot to consider when you’re viewing vacation homes.
That’s why we’ve created this list of the most important factors you need to think about when you’re researching second homes around the world.
Country And Region
Location is the key factor to consider and one of the most fun. You’ll be able to travel to unique places and see what they’re like to visit. If you already know where you want your holiday home to be because it’s close to a favorite resort or near to family and friends, then this part of your search is easy. You’ll just need to look for local towns and neighborhoods. On the other hand, if you’re not sure where to buy your holiday home, then consider what you want. If you’re looking for a place in the sun, then explore some of the best countries for buying a second home.
Property Type
Alongside location, property type is one of the most important factors you need to think about, as it will affect almost every other decision you make. The type of property you select will influence the amenities you have access to, the ongoing costs and how you make the most of your second home. So, you need to think about the type of property you want to buy from the common options available in your chosen location. Apartments, wooden cabins and mobile homes often come with more maintenance means and more shared amenities, but they are usually more compact and cost-effective. Weigh up the different options to consider the best one for you.
Size And Amenities
Once you have an idea of the type of property you’re looking for and where you want to buy your second home, you can start thinking about how many bedrooms you want, what square footage you’re looking for and how many additional amenities you want. These include the basics, like the bathroom and kitchen amenities, such as sinks, toilets and cookers, and more fun amenities, such as pools and hot tubs. There are so many options available, so start looking at listings and considering what you could add using the space available in the properties you’re viewing.
Laws And Taxes
If you’re buying a second home in the country you already live in, but in a different region, then you might already have a grasp of the laws and tax system in place. However, if you’re looking in a different state, then you’ll need to learn about the laws and systems the same as if you were buying an international property. Learn about the local laws and how they apply to you so that you don’t make a potentially dangerous and costly mistake. Some countries have property laws that are more accessible for foreigners, so consider exploring these options and learning what you need to know before you start shopping for your international second home.
Purchase Fees
Armed with a rough idea of what you’re looking for, you can start looking at listings and comparing prices. In some countries, you can negotiate a price for property, while in others, it’s harder. So, you should explore the options and see if you can find the right second home at the right price. The cost of the purchase will include any mortgage fees, legal costs and interest, so you need to factor all of this in when you’re setting your second home buying budget. You’ll then be able to find the right property at the right price.
Maintenance And Running Costs
The purchase price isn’t the only cost to consider. When you’re buying a second home, it’s easy to focus exclusively on the listing price and overlook the ongoing cost of running the property. Some second homes are more expensive to run than others, particularly apartments or cabins that are leasehold and on land owned by a particular holiday park. These properties often come with ground rent and shared facility maintenance fees, which can rise each year. That means you need to be prepared for these fees and aware of how much they could potentially cost throughout the time you own the property.
Renting Out The Property
Many second home owners choose to rent it out when they’re not using it to help make the most of it and earn some extra cash. If you’re planning on renting out your vacation home, then it’s important that you learn about the rules for doing this for your second home and explore the property management services available in the area. Some properties in specific vacation locations that are managed by holiday companies might have rules about renting and might require you to use their services. Learn about the options and how much you could potentially earn, so you know how much money you have to put towards your second home’s running costs. You’ll also want to consider your options when decorating to ensure your furnishings meet your needs.
The right vacation home can be an amazing asset that gets used for many years or even decades and can be passed down from generation to generation. To ensure that you get the most out of it, you need to take the time to find the perfect second home that suits your needs. These tips should give you a checklist of important factors to consider when buying a vacation home, so you can find the perfect one that brings you joy for many years to come.
