Living abroad tips and hints for money savers

droopsnout

Hi, Kittie.

Everyone is different, and I suspect that there will be as many preferences expressed here as there are posters!

Some of us live abroad permanently, some intend to move back to the UK at some point (perhaps not full-time, though) and others here have holiday homes abroad.

I can say that round here there are are a number of beautiful houses owned by Brits as holiday homes,and some of them are occupied for as little as a fortnight a year. So why did those people buy them?

As in investment? Well, over time, they will have increased considerably in value, despite the recent downturn.

As holiday homes, and nothing more? Well, if they use them only once or twice a year for a fortnight at a time, it seems hardly worth it. Maintenance, local taxes,etc., make that an expensive holiday in many destinations.

As a retirement home to be moved into at some future time? Could be a good move. But if the cash was already in the bank, would the interest lost (by buying the house rather than keeping it invested) have amounted to a greater gain than the increase in the house's value less its maintenance costs? Tricky calculation, perhaps.

As a status symbol? No comment.

The real reasons are probably a combination of all or some of the above.

If you have (for instance) £200K to spend on a foreign property, the interest on that (at the previous levels of 5%-ish) would have paid for a decent annual holiday (depending on your needs and desires). And you'd still have the £200K. And you could visit a different place every holiday, if you preferred. Today's interest rates are not so generous.

At the same time, with interest rates for loans being at a low, mortgages for a foreign property are less expensive, and with property prices being somewhat depressed, now could be a very good time to buy. Also, if renovations are required, it is a little easier to find craftsmen to carry out work, and charges are likely to be a little more negotiable.

My personal opinion? I wouldn't buy a holiday home unless I could use it regularly and make the purchase worthwhile. I would have to balance the investment against the lost opportunities to travel elsewhere. On balance, I probably wouldn't do it.

But as I said, different folks have different needs and wishes.

droopsnout

Francophile wrote: »

Our plan, when we retire, is to live in France about 6 months of the year and to use the house there as a base to see other parts of Europe.

I like this way of thinking, and indeed when we bought our place here, we had in mind easy, nearby access to Spain and then Portugal (and even Andorra, though it's not worth it!!), and straightforward access by road to Italy, Switzerland and Germany.

However, plans change - or are changed by circumstances. Exchange rates and fuel prices have had a major impact on disposable income, and we haven't travelled anything like as much as we envisaged.

We bought our place over six years ago when the rate was £1=1.625€. As you, see, it's now 1.145€, and has been down to 1.02€. It could happen again. Historically, the pound has fallen consistently against the currency in France since I was a teenager, when there were 16 francs to a pound. (Now, the equivalent would be approx 6.5 francs to the pound).

Relatives have just been staying with us and said that they had noticed how everything was so much more expensive here this year - and it wasn't just an effect of the exchange rate.

Moving your money abroad is a risky business.

gallygirl

I love travelling & bought a holiday home with some trepidation as was concerned I would not use it enough.

However, I am amazed at how my feelings have changed. I absolutely adore it, never get bored and it takes a lot to persuade me to go elsewhere. I think that's because I see it as HOME rather than HOLIDAY and so relax immediately. OH & I have v busy lives and we love the chill out factor from knowing our way around, having our own things and seeing friends. And after going there for 4 years (2 in hotels whilst it was built) there are still so many places we have not yet been to.

I can't get enough of the place.

Off there tomorrow :j:j:j:j!!!!

paulbrady07

I've not actually used this company myself but my best mate has just emigrated to australia and used halofinancial.com to deal with buying the house.

They were really helpfull and seemed to save him lots of money on the asking price unlike the estate agent quotes and independant searches that he had completed himself!

Like I say, I havent used them myself but maybe worth a look at if you're in this situation....I'm still dreaming!

Francophile

gallygirl wrote: »

I love travelling & bought a holiday home with some trepidation as was concerned I would not use it enough.

However, I am amazed at how my feelings have changed. I absolutely adore it, never get bored and it takes a lot to persuade me to go elsewhere. I think that's because I see it as HOME rather than HOLIDAY and so relax immediately. OH & I have v busy lives and we love the chill out factor from knowing our way around, having our own things and seeing friends. And after going there for 4 years (2 in hotels whilst it was built) there are still so many places we have not yet been to.

I can't get enough of the place.

Off there tomorrow :j:j:j:j!!!!

Hi Gallygirl. I feel just the same about our house. We go there about 5 times a year ( have been 3 times already since March) and I never get bored of it. I call it my other life because as soon as I arrive there I imediately chill out. We know where everything is so don't have to spend the 1st few days sussing everything out. It just feels like home and I just love it.

Francophile

Just to add to that, we have 5 children and taking them on holiday was a very costly exercise. So although we have the annual maintenance fees, taxes etc we still feel it was a worthwhile investment.

droopsnout

Francophile, I know just how much you love your house in France, and how much use you make of it, not to mention your future plans. It makes lots of sense for you.

But there is really the most beautiful house two kilometres from us, with a lovely ruined windmill in a super garden, and it's owned by Brits. They are there perhaps two weeks a year. They are paying out a lot for the privilege, including wages to the chap who tends the garden for them.

Now to me, that doesn't make sense, though, of course, I know neither the people nor their circumstances.

I think it's great that both you and gallygirl love the areas around your homes, and can think of no better reason for buying there! Sometimes, it just feels right.

gallygirl

Francophile wrote: »

It just feels like home and I just love it.

So are you like me & can't understand why you have to leave it because your heart & brain says 'but I live here '

donny-gal

Well to be honest I would say now is not the time to buy while the £ is low. While I also love my hh and if we sold it at the moment would mak e£'s but not €'s.
If you are in doubt rent. DG

droopsnout

Ah, but but will the pound get stronger again? And if it does, for how long?

Agree as always about renting. Make sure of your feelings before committing.