Imagine owning a place in an exotic country that made a small fortune on the side. It’s the Holy Grail for all travellers. After all, a bank balance tends to stop during the trip of a lifetime. Why not invest in real estate to keep it topped up and full regardless of your location?
The typical response is price – it costs too much to buy and maintain a holiday home. There are two mortgages for a start, and then there are the upkeep rates. Plus, the hassle isn’t a waste of money but it’s a waste of time.
If only there were hassle-free and inexpensive ways to turn a profit…
The Location Line
You keep the money-spinning while you’re not there, the place needs to be in a hotspot. Otherwise, only a handful of guests will turn up each year and it won’t be enough to break even. The issue is that an excellent location only increases the costs so you’re stuck in a catch-22 position. One way out is to find a fantastic location in a less famous place. For example, the UK has numerous hotpots which are cheaper than villas in Spain, Greece or the South of France. The initial investment will be lower and that will keep the costs down.
HMRC You Soon
They always do because they want their pound of flesh. Any money which moves through your British bank account may be subject to tax, which is important to keep in mind. For starters, you need to understand things such as council tax and insurance legislation regarding a holiday home in the country. Also, speak to an expert about upcoming or expected changes to avoid a surprise tax bill. If you own a property abroad, check out residential and domicile regulations. Don’t forget local tax contributions, also.
Holiday homeowners can live hundreds if not thousands of miles away from the area. So, trying to organise repairs and pay them at the same time is a nightmare. Luckily, property management companies are willing to shoulder the burden. However, you do have to pay, and the rate is pretty high because they are responsible. A cheaper option is to hire a glazier and install aluminium doors and windows. Not only are they attractive, but they’re durable as well. In fact, every feature in the house should be built to last so that you don’t have to fix things and fork out money constantly.
Love You Long Time
Remember that a real estate investment, at home or abroad, is a long-term project. Although this seems as if it will add more hassle, it may take it away instead. Looking at the bigger picture will help you to find long-term solutions for the future. For example, rental landlords can pay more in the short-term to avoid problems further down the line. There will always be niggles, but the big expenses shouldn’t crop up as much and take up your time.
Can you see how it’s possible now?