Are you interested in buying a holiday home as an investment?
These following tips could be useful in helping you making the right decisions so that you obtain the maximum return on your investment.
Obviously the most important decisions which have the greatest impact on the house are made before the property is bought.
Although many people buy a second home abroad to be used for vacation or to retire and as a source of joy and relaxation, but many other do buy as a future investment, if that is your case the following paragraphs could help to make a more rational investment.
Know the assessed value of your future home before you buy
Before making an offer to the buyer, it is important to know the real value of the property and also it is important to know how the market has behaved in recent years in that area in particular.
You could request an estimate valuation online from web pages such as Tinsa. They will charge you about 8€ or you can have a more detail valuation using the Stima Premium report, where you will not only know the estimated value of house but also receive a detailed descriptive analysis of the data area as the evolution of value in €/m2 or characteristics of the properties in the area. This information will help to economically assess the purchase and its possibilities in that area.
Engaged an experienced real estate agent
A real estate agent with experience in the area on purchases of second homes is very important because it will help you find the homes that best suit your needs. Chances are that they are experts on the real estate market situation in the area and will advise you to buy housing which are more prone to be let with minimum expenses. A good energy certificate, access to all utilities etc can be interesting information to be obtained from them.
Know all household expenses
It is important to do a little research to find out all hidden costs that may have your future home such as electricity, property tax, community expenses, insurance ... Sum it all up and you can then apportion these annual outlays into monthly or weekly quotas in case you decide to rent the property so that you can ask for the right letting price.
Also remember that there will be times when the property is not rented so you have to consider that expenses will need to be paid whether the property is rented or not. Another way to obtain invaluable information will be to asking neighbours who may be in the same situation, probably your real estate agent can also help you in this matter.
The energy performance certificate not only will help to work out the yearly energy expenditure but also help you to know what improvements can be done to reduce consumption. This indicator is very reliable but it has to be done by a qualified professional such an architect or building engineer.
Confirm that the property has all licenses in order
They have been notorious cases in recent years of investors who have seen their homes demolished on the coast because time after purchase, have learned that the property was not legal from the planning point of view. If the purchase is financed with a mortgage, the necessary pricing to obtain the loan should include these checks in any case the best advice that I can provide here is to obtain the help of a good solicitor and have the property surveyed by an architect and include the planning research as part of the survey report.
Find an estate agent specializing in letting.
As a holiday home it may not be rented throughout the year, while yet it will need someone to look after the house. A real estate agent can help you find someone you trust who can take care of maintenance in the months in which is not rented. These estate agents will also help to rent the property at any time in or in periods out of season so that the purchase can be more cost-effective.