Buying a holiday home abroad

Foxy222

Newbie poster here.
I sadly lost my mum last year and I've inherited her pension pot ( £125k) . Initially I thought I'll leave it for my own pension. But I'm starting to feel life can be short perhaps find an enjoyable way to invest. 
I'm just toying with the idea of buying a holiday home in Spain/Portugal....somewhere easy to fly to from Newquay.  Needs to be child friendly to not crazy hours of travel( I have a 4yo) 
I'm reading a few scare stories and wondering if it's not a good investment. 
I dont know if the fact i inherited my dad's house around the same time ( it was a very sad year) makes any difference. I plan to renovate and rent that one.
I know there are obstacles but is there so many this just won't be feasible? 

I'd like the good, the bad, and the ugly!!

Thank you 

FlyMeSomewhere79

It's a great thing to be able to do but just make you research reputable estate agents that will make sure you get all the right legal representation to ensure no stone is left unturned.

The other thing to think about is Brexit and whether the 90 day thing will be a problem - I'm not sure how it works with leaving and returning multiple times to your home there. 

Then it's thinking about what you do with the home whilst it's not in use by you. You could put it on Airbnb which is a great platform for people renting holiday accommodation etc but then you'd need someone out there to manage it.

My partner and I would like to retire out there but we are hoping Brexit stupidity will have eased a bit by then.

Foxy222

With my little just starting school it's unlikely we'd be there more than 90 days in a year. But yes I think finding the right legal expert abroad seems the most daunting aspect

Best wishes for your future hopes FlyMe

searchlight123

I've owned a home in Spain for 16 years. Have no intention of living there but visit around 6 times a year and drive over with the dog around September time for 6 weeks. It's fantastic but you need to realise it's not generally like a property investment in the UK. I paid around £90k in 2008 and it's worth around £160k now, so a nice increase but nowhere near UK levels.

I don't rent it out but would never want to sell it either. It's great having a lovely bolt hole a 2 hour flight away (I live in the SE). If you can afford it and want it, then do it. It's brilliant.

RHemmings

tonygold said:

I've owned a home in Spain for 16 years. Have no intention of living there but visit around 6 times a year and drive over with the dog around September time for 6 weeks. It's fantastic but you need to realise it's not generally like a property investment in the UK. I paid around £90k in 2008 and it's worth around £160k now, so a nice increase but nowhere near UK levels.

I don't rent it out but would never want to sell it either. It's great having a lovely bolt hole a 2 hour flight away (I live in the SE). If you can afford it and want it, then do it. It's brilliant.

I'm not the OP,  but am curious. How much would you estimate the house costs you per year. Property taxes, maintenance, standing charges (and minimal usage) for energy, etc? Just a very rough guess would be fine. 

lika_86

Why do you want a holiday home?

Personally I'd invest the money and use the interest/dividends/growth to fund nice holidays without being tied to one place or having to maintain it.

Foxy222

RHemmings said:

tonygold said:

I've owned a home in Spain for 16 years. Have no intention of living there but visit around 6 times a year and drive over with the dog around September time for 6 weeks. It's fantastic but you need to realise it's not generally like a property investment in the UK. I paid around £90k in 2008 and it's worth around £160k now, so a nice increase but nowhere near UK levels.

I don't rent it out but would never want to sell it either. It's great having a lovely bolt hole a 2 hour flight away (I live in the SE). If you can afford it and want it, then do it. It's brilliant.

I'm not the OP,  but am curious. How much would you estimate the house costs you per year. Property taxes, maintenance, standing charges (and minimal usage) for energy, etc? Just a very rough guess would be fine. 

I'd be interested in this too

Foxy222

lika_86 said:

Why do you want a holiday home?

Personally I'd invest the money and use the interest/dividends/growth to fund nice holidays without being tied to one place or having to maintain it.

The pension pot is invested,  I don't want to dwindle it away, I'm a way off being able to get a decent pension together myself and I considered it might be a nice way to invest and great to have somewhere to take my little one during some of the school holidays when prices are at their highest. 
As I  said it's just a thought.  That's why I'm here

HobgoblinBT

The cost of a holiday home with all the pluses and minuses would as an alternative buy a lot of holidays without being restricted to one place to visit.

user1977

FlyMeSomewhere79 said:

just make you research reputable estate agents that will make sure you get all the right legal representation to ensure no stone is left unturned.

You wouldn't trust the (seller's) estate agent to find you genuinely independent legal representation if you were buying in the UK, so why do it abroad?

FlyMeSomewhere79

user1977 said:

FlyMeSomewhere79 said:

just make you research reputable estate agents that will make sure you get all the right legal representation to ensure no stone is left unturned.

You wouldn't trust the (seller's) estate agent to find you genuinely independent legal representation if you were buying in the UK, so why do it abroad?

Because if she's buying abroad she's going to consult property agents who can she can consult to find a well reputed solicitor, the agents don't need to be selling the OP anything at that stage just to enquire about who a good local solicitor is.

The UK is different, we don't buy houses and then found out years later that the solicitor was a sham, we don't own the house and it's going to be knocked down and a road built through it. There isn't a language barrier either.

The OP needs trustworthy advice. You didn't suggest any alternative and I don't feel it's advisable to be trying to find a good Spanish / Portuguese solicitor without help!