Can you afford a vacation home? There are numerous holiday villas for sale in every country and the process of buying a vacation property is the same as that of buying a primary residence. It requires total commitment in terms of money and time. The process can however be difficult when an international home purchase is needed. You need to work closely with real estate lawyers and agents to be successful. If you are looking to purchase a holiday villa right now, you have to decide on the location.
Are you going to buy a second home in your country or overseas? Prior to picking a great location for your house you should know its purpose. Perhaps you want to relocate to that house after retirement.Maybe you want to buy a rental villa for extra income. It could be that you are targeting a property in your favorite tourist destination so that you can travel there anytime you want. Properties in beach resorts are very many and each is uniquely priced.
It is, however, possible to find a few houses that are within your budget range if you explore the interiors of your favorite destination.Vacation villas for sale near beaches are obviously expensive than properties that are relatively far from the beaches. Beach resorts cottages have balconies or decks that overlook the ocean and its shores, allowing you to get pleasure from the tropical climate within your residence. If you need international beach homes for sale, just use the internet for research.
It will help you view properties in various countries. As you study overseas property markets consider political and economical situations in different countries. Buying a second residence in a country that has been hit by terrorists many times in the recent years is a bad decision. You may also talk to friends, relatives or strangers on real estate related forums about your plans. They might be able to suggest great locations with regard to purchase of holiday homes.
After choosing suitable locations you should establish a sensible price range. It is only you who know your financial strength and the sort of second residences you can afford.Besides the price of the property itself, you must know there are hidden costs particularly if you will be purchasing a holiday home in a different country. The real estate laws are obviously different from those you are used to in your country.
There may be special fees you would incur simply because you are a foreigner. As you look through various property websites on the internet, know that the labeled price beside each property picture does not include everything. You will have to work with an attorney and other agents too and they will have separate rates for their services. Therefore as you set your budget you must reflect on hidden costs as well.
Unlike passive investments, such as mutual funds, income property is very much a hands on business. With mutual funds, you pay an often hefty management fee each year. There is nothing for you to do except follow it in the newspaper, if you like, and decide when, and if, to sell it.
Real estate investment is very different. To succeed with income property, you must treat it as a serious business. With income property, there are always jobs to do. As every homeowner knows, something always needs fixing.
This is also true with investment property. The property must be maintained, tenants screened, rents collected, repairs made, complaints handled, and perhaps evictions. This is a fair amount of work. You must ensure it is done.
You may hire a property manager to do most or all of this work. However, for a novice investor, this is seldom ideal. Management fees can take a big bite out of your investment returns. Many novice real estate investors put a lot of "sweat equity" into their property by doing much of the work themselves.
Here's a checklist of questions to answer before buying income property:
1) Do I have the time to maintain and manage the property well? If not, do I know someone who will manage it well at a reasonable cost?
2) Do I feel comfortable investing a substantial amount of money in an investment which may be hard to sell in a down market?
3) Am I prepared for the extra stress of dealing with tenants and prospective tenants?
4) Do I have the people skills to deal firmly but reasonably with tenants?
5) Will I live on the premises? (Main advantage: You'll know what is going on. Main disadvantage: You'll be very accessible to complaining tenants).
6) Is managing the property compatible with my lifestyle, work schedule etc.? The property must be cared for no matter where you are.
7) Am I prepared to invest in regular maintenance and repair of the property? You must keep your property in good shape to attract desirable tenants. It must also be kept up to the standards of your local building code. This can be expensive.
These questions will give you a good idea of whether or not income property is for you. It can be a great investment but it's definitely not for everyone. If you decide being a landlord is not for you, there are more passive ways to invest in real estate such as buying stocks in real estate companies, real estate trusts etc.