Buying a rental property abroad ?

Rubyminx

Hi,
Any advice on buying a rental property in either southern Spain or France ?
Is it best to buy in a main city or a coastal area ?
Has anyone used such rentals as a form of income ?
I would be using a mortgage to buy the property.
Thanks,
Ruby

Dave_Ham

If you only have 10% for your UK purchase (see other thread) then this is naïve idea.

Search the web and you will find countless horror stories.

holly_hobby

Hi

Given the euro issues, and the effect its having on euro property, is this a wise move ?

Also knowing your market, target audience, yields, exposure, etc is only something you can find out from actually researching the market yourself ..... a trip to the areas you fancy, speaking to local agents, looking at what the most popular style of rental is (ie apartment, villa, no of beds etc), where has a year round market, and the type of rental demand and income you can expect, is all part of the personal evaluation process.

If you require a mge, UK high st lenders whom did dabble in France and Spain were Barclays, Santander, HSBC, you could also try London based BNP Paribas whom also consider lending in your preferred areas.

You'll be looking at about a 30% deposit, and of course status/income will have to be suitable.

When you are ready to commit to a property you think fits the bill, I would really engage a broker whom is au fait with overseas property pch, giving the additional conveyencing complexities and taxes that can arise.

Of course, the alternative if you own your own home either mge free or with decent free equity, would be to remortgage your own home and use the released capital to pch the overseas property outright.

Please do all your homework before jumping in, given that trying to re-sell without a loss or in a realtive short period, may not be too easy in the current climate.

Hope this helps .... wish you well in your venture !!

Holly