Avoiding the Pitfalls
Buying procedures and laws vary dramatically from country to country. Invest in good legal advice now to avoid problems in the future. You need to hire a lawyer who is fluent both in English and in the local language, even if this costs you more. This will help you to avoid mistakes such as buying properties with no title deeds, those built without planning permission or with a demolition order in place. If your property is near some open space, your lawyer can help you find out whether this area might be built on in future. The local tourist office should be able to provide you with some contacts for bilingual lawyers.
Always visit the property personally, a surprising number of people buy unseen. Take your time and do your research independently, don’t take an agent’s word as fact. Buying a second home is a big financial commitment, so make sure you go into it with your eyes open. Think about how you would cope if you didn’t get the number of rentals you’re aiming for and don’t put yourself under too much financial pressure.
Always get a full structural survey done before you buy, and investigate planning permission for the country where you are buying if you wish to make significant changes to your new property.
Investigate the inheritance laws in the country where you’re buying. You may also need to have a will made in the United Kingdom and another in the country where you are buying. Inheritance laws vary drastically – for example in France it is obligatory to bequeath any property you own in France to your children.
Do some research into crime levels in the area. Holiday Home owners who can be very well off compared to local inhabitants and who are likely to leave their property uninhabited for substantial lengths of time need to be cautious. Also if you’re buying in an up-and-coming country, check out the political situation. You need stability to be able to make this investment work. Research what the laws regarding Visas are for your guests if you are buying outside the EU.
Keep renovations to a minimum. Many people are tempted to buy a wreck for a rock bottom price and make it their own, but before you jump in think about your budget and also your time. Being in the UK will make it more difficult to get building work done. If you’re buying abroad for the first time it’s best to avoid anything that will take too much time and money before you can start renting it out.
A short-term rental ban is a law that stops you letting your property out for short lengths of time. A ban will typically be on rents under 30 days – which could ruin your plans to let out to Holidaymakers if you find out too late. You’re most likely to find these rules in place in a self-contained resort or complex. To make sure you avoid buying a property with a ban, do some independent research. Don’t take the seller’s word that you’ll be allowed to rent out. If you’re buying in a complex, then ask the community president and get your lawyer to make sure for you.
If you’re nervous about the way forward, you could always buy in conjunction with a Property Finder. These are usually individuals or small companies who have specialist knowledge of a local area, are fluent in the language and have a good working knowledge of the whole purchasing and ownership process. A good property finder will add a small percentage to the overall cost of buying but may be worth the costs as they will do much of the leg work of looking for suitable properties and can be a great help if you’re new to the country or the buying process.
