Property abroad

jennystarpepper

Wanted to ask anyone who has a property abroad a few questions.

As much as I welcome all comments, please do not use this to bang on about Brexit! The limits on time being at the property is not an issue for me. 

Due to health reasons which are not going to change I'm considering buying a place mainly for winter sun, just wondered if any of you or your family / friends have done this and if it was a good or bad move for them?  

For me it is health benefits, know a person who is ill, they and their consultant confirm the health benefits for them is keeping them going.

The only downside for me is having to finance part of this, will be mortgage free soon and then will fund partly from current home, or just paying as we go and keeping the money in the bank with no commitments.

Anotheronebitesthedust

We had a property abroad and lost a lot of money on it over the years with the market crashing. Some friends moved permanently now cannot afford to return to the UK due to losses in value. My advice would be to get a good UK solicitor to oversee everything and do lots of homework. Always keep a base here in the UK even if you have to rent it out. 

jennystarpepper

Anotheronebitesthedust said:

We had a property abroad and lost a lot of money on it over the years with the market crashing. Some friends moved permanently now cannot afford to return to the UK due to losses in value. My advice would be to get a good UK solicitor to oversee everything and do lots of homework. Always keep a base here in the UK even if you have to rent it out. 

It's for winter sun, I will not be moving abroad, I think getting a good solicitor is what anyone should do.  

We know the area and already stay at the same place.  The property is in the Canaries, so it appears to hold its value. 

strawb_shortcake

I don't own a property abroad but based on family's experience you also need to understand your exit strategy. When they wanted to sell it took a long time, when they eventually had a buyer, one of the owners passed away and the sale had to be stopped and they lost their buyer.

Outside of this, I'd also consider what it would cost to holiday 3 months a year in the sun compared to buying maintenance costs for x amount of years.

We looked at apartment prices 10 years ago in Tenerife, they were €56k then today €250k for a basic apartment no pool, so could be an investment opportunity but not always possible to let out, but €250k will get you a lot of holidays.

jennystarpepper

@strawb_shortcake, I was thinking just that, £ 200k +, for holidays and no commitment.

 I also have no family so apart from a couple of relatives who would waste anything left to them, I'm intending to spend my money, and my home would fund me or husband if we need care.

The big appeal is jumping on a plane when I find a cheap flight with just my passport. and not having to check when accommodation is free. 

MyRealNameToo

jennystarpepper said:

Wanted to ask anyone who has a property abroad a few questions.

As much as I welcome all comments, please do not use this to bang on about Brexit! The limits on time being at the property is not an issue for me. 

Due to health reasons which are not going to change I'm considering buying a place mainly for winter sun, just wondered if any of you or your family / friends have done this and if it was a good or bad move for them?  

For me it is health benefits, know a person who is ill, they and their consultant confirm the health benefits for them is keeping them going.

The only downside for me is having to finance part of this, will be mortgage free soon and then will fund partly from current home, or just paying as we go and keeping the money in the bank with no commitments.

Own property overseas and know others that do too. Some are happy with the outcome, others arent. 

Make sure you understand your obligations as a home owner there, what other costs you are taking on, how ownership works there etc. A "good lawyer" is all well and good being in the UK but they need to understand the legal jurisdiction in which you are buying in. 

An associate decided to wing it and trusted an estate agent that is aimed at foreigners and only after buying realised they hadn't bought the freehold but effectively a 20 year lease. 

It really depends on if you like going back to the same place each year or want to be able to mix things up. Clearly some will consider it wasteful having it sitting there empty if you decide this year you'd rather go to Thailand. 

eskbanker

Anotheronebitesthedust said:

We had a property abroad and lost a lot of money on it over the years with the market crashing. Some friends moved permanently now cannot afford to return to the UK due to losses in value. My advice would be to get a good UK solicitor to oversee everything and do lots of homework. Always keep a base here in the UK even if you have to rent it out. 

Given that it would always be necessary to get a good solicitor in the relevant foreign jurisdiction, with knowledge of local laws, etc, what role would you see a UK solicitor playing in the process that would justify the additional cost?

jennystarpepper

@eskbanker, I agree, it would be a solicitor in the area / country I am buying in, I know other people British, Belgium, Austrian and so on the same site as where I would buy, and they are an excellent community, so have an idea of who I would use.

twopenny

You have ongoing maintenance and bills. Friends who did this decided to move there after struggling with being absent and dealing with maintenance.
They returned after a couple of years.
 
To book and go you would have an empty house but it still needs upkeep.

I used to know people who booked 3mts in an hotel for winter in sunny places. Made friends who did the same. There's deals to be had.
Saga also used to do long winter stays pre pandemic. Don't know if they still do. Very good price and all inclusive. Now that's fly and drop.

strawb_shortcake

twopenny said:

You have ongoing maintenance and bills. Friends who did this decided to move there after struggling with being absent and dealing with maintenance.
They returned after a couple of years.
 
To book and go you would have an empty house but it still needs upkeep.

I used to know people who booked 3mts in an hotel for winter in sunny places. Made friends who did the same. There's deals to be had.
Saga also used to do long winter stays pre pandemic. Don't know if they still do. Very good price and all inclusive. Now that's fly and drop.

I seem to recall there was an article about a young man who booked a month in Turkey for around £800 last year through ice lolly or love holidays

Savvy_Sue

I wouldn't do it, because I am quite risk averse, but also, it's the same issue as getting your main home 'future-proofed' and keeping it that way.

You might like the idea of just being able to hop on a flight when the price is right, but I'd also want to factor in whether the property would feel 'ready' on arrival. I like finding the key, and there's a clean apartment, beds made up, wine waiting.

And if for some reason you couldn't fly for a period, that's tricky.

Continuing to rent gives more flexibility IMO.

Plus legislation abroad can change unexpectedly, and life become more difficult for non-resident owners as a result.