Property abroad

Organgrinder

When we retire, We've thought about spending some of the winter abroad.

I've just done a quick search. 4 weeks all inc in Egypt for £1,800 for 2 people. That's roughly half our expected income for the month!

Another search on January flights returns Malta, Canaries, Morocco all for under £100 for 4 weeks or 8 weeks.

Decent apartments can be let for £1,500 if you wish to self cater. So two people for two months is under £2,000 plus your food/entertainment costs.

Just putting it out there that the cost of spending 2 months (or more) in warmer climes may be less than just the maintenance costs of your own place, plus the added flexibility of going to different places if that appeals.

Of course if you're looking for an investment the above make no sense but maybe worth considering otherwise.

jennystarpepper

Maybe a few have missed that I said in another comment the property is in the Canaries.  

I would not use it in summer, so school holidays would be ideal to cover costs, if I wanted to.  I will add that the Spanish are lobbying the EU to let UK residents stay longer, but if this did not change it would not affect me. 

As for an apartment not being ready for when I get there, I wouldn't leave my own home not liveable before I went, so why do this to a property I owned abroad?  

strawb_shortcake

jennystarpepper said:

Maybe a few have missed that I said in another comment the property is in the Canaries.  

I would not use it in summer, so school holidays would be ideal to cover costs, if I wanted to.  I will add that the Spanish are lobbying the EU to let UK residents stay longer, but if this did not change it would not affect me. 

As for an apartment not being ready for when I get there, I wouldn't leave my own home not liveable before I went, so why do this to a property I owned abroad?  

As I understand it there are quite strict rules on renting out properties for holidays lets - certainly in Tenerife anyway so you'd need to purchase a property that could also be a holiday let. I noticed when we were there this year properties had signs on signifying whether it was a vacation home, restaurant etc

jennystarpepper

@strawb_shortcake, yes agree, we have enough family to let them use it during the holidays on the understanding they cover the utilities and contribute to communal fees, and the in laws kids / grand and great grandchildren would not want to face husband for leaving a dirty apartment. 

I don't want to be messing about registering to pay tax, too much hassle when looking to retire.  

Savvy_Sue

jennystarpepper said:

As for an apartment not being ready for when I get there, I wouldn't leave my own home not liveable before I went, so why do this to a property I owned abroad?  

I'm not suggesting 'not livable' and you could get round it with a trusted key holder or cleaner, but I enjoy arriving on holiday and everything is 'fresh'. Sometimes we get back home here, and because no doors or windows have been opened or closed for 10 days or so, it feels different. That's the kind of thing I mean. 

And I know you can pick up supplies en route from the airport, and leave the basics in place, but I guess I just like someone else prepping for me.

Lifematters

I have a relative who owns a property in Spain he and his wife use several months a year, during both summer and winter. They’ve had it 10 years and although a lovely place they regret what they’ve spent both on the purchase price and the upkeep. They would lose a lot selling it.

You could have several months holiday over the winter period for the next 30 years and it would still be a fraction of the price to purchase a property, with none of the upkeep costs or risks. 

MayDogsandCoffee

I know someone who works the UK summer then spends most of the winter in Malta.  They book holiday accommodation a self catering studio in a hotel. which can work out cheaper the longer you stay.  Everything is done for them, room cleaned  no maint, good breakfast. 

belfastgirl23

I have relatives who own property abroad - one in Italy and one in Spain. Both were in a position to purchase outright after retirement and both feel it has been a success for them. 

Some things to consider:

- If you’re going to spend longer amounts of time abroad (e.g. in winter) what are the implications for your home property? Who will look after it? Will you need to continue to heat it? What happens if something goes wrong with it? Would you be willing to rent it out while you are away (one relative does this)?
- There is work associated with a second home. Upkeep and maintenance. This is not just about money but also about interacting with local administration which takes time, and about managing things in a second language. Having an infrastructure if the toilet stops working for example. You don’t realise how important your networks are for this sort of thing until you don’t have one. And you have a second layer of administration infrastructure for your life.
- Hidden costs - water and electric bills, property taxes (often higher for second home owners), additional home insurance in the UK if you’ll be abroad for longer periods. 
- Managing the expectations of friends and relatives who want to spend time in your home, including managing the costs of having them stay (electric, gas etc). 

- If you’re in a condominium type home (more common abroad than in the UK) what are the implications of this for property management? Might you suddenly become liable for a big bill for property maintenance?

- What happens if you become ill abroad (more likely as you get older). Will you need health insurance? Is the health infrastructure good?
- The time and effort involved in opening and closing a home up both sides - count on at least one day for opening and one day for closing 

- Changing currency costs - you might agree a price when the euro is at 1.15 to the £ and by the time you’re transferring the money it’s at £1.11 - a big difference in a home purchase…

- What the flight infrastructure is like out of summer season - it’s a big bonus if you can fly from a nearby airport directly to a nearby airport even in wintertime.

I’d recommend having a very good in-depth chat with a couple of people who have already done this in the area you’re considering and drilling down into the financial aspects of it, then comparing it with e.g. the cost of renting an apartment for 3 months a year. And thinking hard about whether you’re willing to take on the additional work and stress of owning a property. 

The idea of being able to walk out and fly to your other home is indeed very appealing but there is a LOT of background work, time and money that goes into making that a reality. From what I’ve seen it is worth it if you are planning to spend the majority of your time abroad (e.g. 6 months per year +) or if you want to have a base for a wider family holiday home but the finances don’t stack up if its a bolt hole for a month every now and again. 

One other thing to think about is that if you develop a relationship with a property owner abroad you might find you can get even better deals than those online - e.g. if you connect with someone over Airbnb or booking.com you might find they are willing to offer you better rates for longer terms or more regular lets. Worth thinking about.

missile

We owned a property in Spain for many years. Found that we felt tied to going to same location year after year. It was great when family and friends came to visit. However, it became tiresome with those who expected a taxi service and a wanted a free holiday. Be sure you are aware of all the maintenance costs.