Have you had enough of watching the poor weather and the low savings rates available in the United Kingdom? Acquiring a property abroad could not only improve your outlook but your wallet too! In this guide, we examine the pros and cons of investing in property abroad.
Is investing in a property abroad as good as it looks?
Owning a holiday home is a dream for many, and while it can be a source of rental income if you lease it out, there are also many downsides to reflect on before taking the plunge too.
Listed below are a few of the pros and cons with regards to buying a property abroad:
- Being able to lease the property for a significantly higher amount compared to standard residential leases
- Having a holiday destination already booked and ready for use all throughout the year
- It can be a good investment
- You get to choose a location you enjoy
- You will be the envy of your family and friends
- Potential to purchase a low-value property with a high commercial value
- If you have a mortgage on your property abroad as well as in the United Kingdom, you will have to manage two significant debts
- Your rental income may not cover the mortgage payments
- You will be responsible for all the costs of maintenance
- The actual cost and return on an overseas property is determined and influenced by fluctuations in the exchange rate
- You will need a management company or understanding friends to deal with the property for you
- You will feel obliged to enjoy the holiday in the same place every year
- In most cases, you would have to choose between a ‘ski’ lease and a ‘summer’ lease
How easy is it to buy abroad?
Investing in a property overseas may simply be a way to earn money, rather than a reason to travel abroad throughout the year. Whatever your reason for desiring to buy outside of the United Kingdom, you should prepare yourself for a different type of property market.