Foreign Holiday Home

imalwayshappy

Registered User
Messages
45
Hi All,

Would anyone have any advice on buying a holiday home in Italy (or abroad). I would like a holiday home where I could spend maybe a couple of months a year and perhaps rent the property out the rest of the time. From an investment point of view do people believe it is worthwhile? I believe you can hire foreign property companies to manage everything for you.

Many Thanks
 

Leo

Moderator
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11,417
Moving this to Overseas Property Investment... Take a look through this forum, few threads on the topic already.
 

Saavy99

Frequent Poster
Messages
517
Do you want to spend a few months there ovee the winter months, if so go where it's the warmest. The canaries prob the warmest place in Europe throughout the winter months. We rented a place in Gran Canarie for Dec, Jan and Feb this year and loved every moment of it. Would have stayed longer if it wasn't for the Corona, most days was 24 degrees. Heavenly place.
 

Conan

Frequent Poster
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1,089
In general, if you plan to spend a few months (our Winter) I would recommend renting:
- you can change locations each year
- no local charges, taxes etc from owning
- no capital costs
- no worry about renting out what own
 

Leper

Frequent Poster
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1,190
I think I replied more than anybody else on buying a holiday home abroad in other threads. We own a holiday home in Spain which we rent to people seeking warmer winter/spring than we have in Ireland.
1. There will not be a good return on your investment (you'll probably make a yearly loss for a long time).
2. You can rent a central 2 bedroom, low rise apartment in a good location in the off season for under €700 per month (inclusive of utilities etc). You have no concerns and even if you don't like the country you only have to live there for a few weeks.
3. If you buy property, you're tying up much of your money. You have maintenance charges, foreign taxes, advertising, commission, cleaning, community fees etc.
4. After Covid-19 you'll probably purchase cheaper than say last year; if you want to buy (and I advise against) now is the time.
 

Zenith63

Frequent Poster
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523
Do you have other (close) family members that might be able to use it?

My in-laws have a place in Spain that all their kids and grandkids get fantastic use out of. With small kids it's extremely cheap and predictable. They don't rent it out as inevitably somebody is over every few months and I doubt it will ever gain much in value, but for them I think it was a great investment in their families well being.
 

Leper

Frequent Poster
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1,190
I don't know if Zenith63's question is for me but if so I'll answer by saying we use the place for several months every year now. However, it was never a good investment.

If I were asked to turn somebody off buying foreign property in some report I would start by saying:- Your holiday home in Spain will cost you €2000 per annum in community fees, Spanish property tax, Public lighting Tax, Car-Parking-Space and a few more Spanish gems before you pay for utilities (electricity, water, refuse all of which you must pay).
 

Saavy99

Frequent Poster
Messages
517
Your holiday home in Spain will cost you €2000 per annum in community fees, Spanish property tax, Public lighting Tax, Car-Parking-Space and a few more Spanish gems before you pay for utilities (electricity, water, refuse all of which you must pay).
Def cheaper to rent in that case and if you do sell, I understand estate agents charge 10% fee. What area are you in Lep and what are the average monthly temperature over winter.
 

imalwayshappy

Registered User
Messages
45
Thanks for the response everyone. Some really good insight and valid points made. I didn't realise the extent of some of the costs. What is interesting is the cheap rent in the off peak periods.

If the OP is always happy, he doesn't need a holiday home. He can sure remain happy here.
I am always happy except when i'm mad! ;)
 

Leper

Frequent Poster
Messages
1,190
You probably know this already, but if you intend to rent a holiday home abroad ask and ask questions of the owner/agent. Get all-in prices e.g. inclusive of electricity, water, refuse, internet, car-parking, etc. If you forget to ask, you're leaving yourself open to add-ons later which could leave you with egg on your face and a thinner wallet. You heard it here first.
 

imalwayshappy

Registered User
Messages
45
You probably know this already, but if you intend to rent a holiday home abroad ask and ask questions of the owner/agent. Get all-in prices e.g. inclusive of electricity, water, refuse, internet, car-parking, etc. If you forget to ask, you're leaving yourself open to add-ons later which could leave you with egg on your face and a thinner wallet. You heard it here first.
Many thanks for this advice Leper, I am going to rethink the idea!
 
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