Concluding our series of posts created to help you research the viability of purchasing a given holiday home, part 9 gives you more pointers that you may not have considered. While selecting a good holiday home insurance policy is of great importance, choosing a holiday home that will provide a good income for the future – or will suit your holidaying habits for years to come – warrants a good deal of your time and energy…
Financial stability of the nation
Take some time to research the economic outlook of the country you are proposing investing in. While times are hard for the entirety of the Eurozone, some nations are more at risk than others. And while it is unlikely to be an issue for almost all European countries, make sure you’re aware of any potential conflicts (political, racial, religious or otherwise) before you sign on the dotted line.
Guaranteed rental returns?
Some vendors of holiday properties boast ‘guaranteed rental returns’. Ensure you find out exactly what such statements of inferences mean. It is important to be aware that some developers simply add the rental figure (for a year, for example) to the overall asking price, meaning such claims mean very little.
Among the many costs you will incur as you manage your property will be the service charge. Find out how much this is and what you get for your money. It can be a costly addition and one you need to include in your overall sums, so you can be as sure as possible that you’ll enjoy a healthy margin of profit.
Taking professional advice
Above all, take professional advice from solicitors and surveyors before making a final decision. Accurate information of licenses, planning control and other permissions will make your life a good deal easier.