Buying a holiday home abroad and assuming everything works as it does at home is the biggest mistake you can make.
It is therefore wise to find a suitable party that can guide you through the buying process abroad!
At the bottom of this page you will also find an overview of some ready-made holiday homes for sale with rental guarantee and a nice annual return!
Table of Contents
- 1 Brokers | Buying a holiday home
- 2 How do you find a suitable estate agent?
- 3 Buying a holiday home? Do background checks
- 4 Directly from the project developer/building supervisor
- 5 The notary | Buying a holiday home
- 6 Additional information about real estate abroad
- 7 Investing in real estate: General info
Brokers | Buying a holiday home
All countries have their own rules and protagonists in the property purchase process. There is also one player who always plays a leading role in your search: the estate agent.
Existence of real estate agents
Real estate agents exist to sell property for a client, whether it is a private individual or a professional developer.
They can promote properties in the region itself or they can participate in certain fairs at home and abroad to attract buyers from outside the region. In addition, almost all of them use numerous promotional channels on the Internet.
In exchange for their sales services, they earn a commission. This commission can vary from country to country, depends on the value of the property and also depends on the age of the property (new construction or resale).
In any case, find out who pays the estate agent: it is not always the seller who pays everything! In such a case, the estate agent can play a greater role than just showing and selling the property.
When you purchase property in your home country, you know the real estate agent as an intermediary.
In such a situation, the estate agent shows you properties and acts as a go-between between buyer and seller during the purchase.
A real estate agent can be an added value - Buying a holiday home
Buying a holiday home abroad through a local broker can be a great advantage.
Suppose you are interested in buying a holiday home abroad. In such a case, a local broker will have to do more work and effort:
- Picking you up at the airport and/or your place of residence,
- Driving around with you to compare strokes and properties,
- Answering your questions about facilities, practical matters and traffic routes,
- Acting as a translator if there is a language barrier between you and the seller.
So, when you choose a real estate agent, you should check whether the person/office in question is capable and willing to perform all these tasks if you require them to.
It is therefore wise to go on site and meet the potential brokers. This way, you can get a feel for the working method, mentality, vision and knowledge of the broker in question before you give him/her a mandate.
It is the ideal way to make use of your accumulated people skills!
How do you find a suitable estate agent?
Always do your own research. A good place to start your research is the Internet.
Visiting a property fair to meet people in person is also a good way to identify a suitable estate agent. Bear in mind that not all estate agents have a stand at such fairs.
In any case, use a major real estate platform such as neximmo.comto find out where you can buy a good range of your desired type of property.
A professional and user-friendly website with all kinds of extra information and advice is a good starting point for finding a professional estate agent with a high level of service.
In addition, you can use Google, the world's largest search engine, to gather some background information about the estate agent.
Enter the name of the estate agent or office in question and look at the search results. Do you like certain testimonies, good or bad? Is the name mentioned on forums or other independent websites?
Is the office or the broker in question a member of a national or international professional organisation?
Not every country requires a licence to operate as a real estate agent. So there are definitely "cowboys" walking around in such countries, so be on your guard!
An example of such a professional organisation is the AIPP (the Association of International Property Professionals).
If a broker is a member of this leading international professional organisation, you can be sure that he/she has to comply with a certain code of conduct and disciplinary process.
Don't be afraid to test your potential broker's local knowledge! Trust your instincts and try to assess whether this broker will fully represent your interests.
Find someone else if you feel the potential broker does not want to spend time with you to get to know you better and assess your needs and desires.
A purchase of recreational real estate is best made with mutual respect and trust in each other. Do not work together with a party if your gut feeling is that something is wrong.
Buying a holiday home? Do background checks
A good broker always does his/her own background checks before deciding to sell a particular property.
In this way, a lot of valuable time can be avoided. "Bad" estate agents leave potential buyers completely to their own devices when it comes to these background checks.
Planning to invest in a foreign holiday home [AVAILABLE SOON]? Then the following must be examined, among other things:
- Are the building and outbuildings licensed?
- Control of building violations (and the cost of possible regularisation)
- Checking the zoning plan and dimensions
- Inquire about arrears in property taxes. Tax arrears in certain countries are transferred to the new owner.
- Is there a mortgage on the building?
- Is there a soil test?
- Owner verification: correctness of title deeds (is the person pretending to be the owner the only owner)?
- Validity of the relevant acts
- Legitimacy of stakeholders
- Certificate of habitability check if applicable
- Planning permission possible at the location in question?
- Is the property in question currently rented out to someone? In some countries the tenant has a right of first refusal! Be careful with this!
As you can see from the list above, the background check is crucial to avoid buying a pig in a poke. A good estate agent will make the difference here and guide you through all these issues.
The estate agent should also explain exactly how the buying process works. Examples are:
- Obtaining a tax number,
- Opening a bank account,
- The introduction of the buyer to financial institutions that can provide a mortgage.
Never forget that a real estate agent is not a lawyer!
So it is a good idea to use a local trustee such as a lawyer who can check everything and look after your interests.
Directly from the project developer/building supervisor
Buying a holiday home directly from a property developer is possible if you are buying property on plan or a new build under construction.
In such a case, the building promoter owns the land, obtains the necessary building permits and then builds the entire project.
Do a background check
If you are planning to buy a new building, you should also do a background check.
Does the project developer have the necessary building permits? How is the project financed? Are buyers' payments secured by a bank guarantee?
Research the past and look at projects already completed by the client in question. Have they successfully completed and delivered previous projects?
Could you possibly visit us and see for yourself the quality of previously completed projects?
This way, you can also talk to the residents on site to check whether they are happy with the quality of the building.
As a potential buyer, always ask for evidence and do not believe anything without being shown the evidence. Ask to see the relevant documents on:
- Occupancy rates
- Monthly owner contributions for costs and maintenance
- Quality of the management of the project developer
- Partnerships such as franchise agreements with certain operators and so on.
Be sure to read the page that deals with important due diligence aspects [AVAILABLE SOON] of passive investment in real estate.
Make a viewing trip | Buying a holiday home
It is always interesting to go and see on the spot how everything works and to see if there is substance. However, there are offers for sale for which a viewing trip is possible!
For example, through Second home in France buying opportunity, you can acquire full ownership of a recreational house that functions in a luxury golf and spa resort in the Limousin region as a carefree investment.
You will receive full guidance and can go on a viewing trip to view the available luxury studios, flats and tree house properties on site.
As an owner, you can count on an increasing annual return, calculated on the purchase price, of at least 5%. In addition, you get four weeks of free private use per year.
On a luxurious estate such as the Wyndham Halcyon Retreat Golf & Spa Resort, this is a very nice touch.
There is an 18-hole golf course, a luxury spa housed in a dream castle with turrets, tennis courts, swimming pools, a water theme park, a huge indoor playground for children, lakes for fishing, an award-winning à-la-carte restaurant in the Chateau boutique hotel on the estate, and so on.
Visit the offer via the link above, read more and leave your details to get more information and possibly organise a viewing trip on the spot including guidance.
Beware of “guaranteed rental income”
Buying a holiday home abroad with so-called guaranteed rental income is an option. Nevertheless, you should always approach such an offer with a rental guarantee with the necessary degree of scepticism.
There is always a chance that in such a case, the property developer may have driven up the price of the property a little. This allows the building developer to pay back your own money in the form of "rental income".
Real guaranteed rental income is only as good as the organisation offering it.
Buying a holiday home as an investment [AVAILABLE SOON], even with rental guarantee, is not in itself a guarantee of financial success! The guarantees must be based on a financially sound company!
The success of investing in real estate with a rental guarantee [AVAILABLE SOON] therefore stands or falls with the party behind the offer that is the contractual guarantor!
So before you buy, you should try to find out what happens if the rental fails and there is less rental income than expected.
So you don't go purchasing a buy-to-let property like this impulsively, even if the conditions seem irresistible at first sight.
French holiday homes for sale with guaranteed return
Investing in holiday homes [AVAILABLE SOON] can be done here and there in full ownership, including contractually guaranteed rental income:
- Buy a second home in France in a brand new luxury resort in the Limousin region:
- 5% contractually guaranteed annual return to start with, rising to 6 and 8% in later years
- 4 weeks free private use per year, during both high and low season
- Acquisition in full ownership (no leasehold, no building rights)
- Optional resale guarantees: Selling at a minimum of 125% or 150% of the initial purchase price after 5 or 10 years of ownership respectively
- Recreational real estate in France with an initial yield of 5% per year, rising to 8% in the future (also with resale guarantees) - Co-ownership purchase
Holiday homes for sale in Montenegro for mixed use
Montenegrin luxury property with 6 weeks free private use and nice carefree gross annual return.
Fantastic location with unique views over the Adriatic Sea. Growing and flourishing tourist destination with much upward potential.
Greek holiday homes on the island of Samos for mixed use
Investing in Greece is now also possible on the beautiful island of Samos. You can buy a holiday home on Samos at the 5-star luxury resort Heray Bay Luxury Resort.
As a full owner, you will enjoy fantastic views over the bay of Hera as well as all the luxurious facilities of this resort.
As icing on the cake, you earn a nice annual return, guaranteed by contract, from your property.
You can also enjoy free weeks of personal use every year. Perfect for enjoying yourself in luxury, combined with a tight return on your invested capital!
The notary | Buying a holiday home
Suppose you are convinced of buying a holiday home and you start the purchase process. In such a case, you can get in touch with a notary.
A notary is an expert advisor with legal background who is recognised by the government to perform certain legal tasks.
For example, in many countries the intervention of a notary is often required by law when purchasing a property and/or taking out a mortgage for a buy-to-let property [AVAILABLE SOON].
A notary has to make sure that the purchase procedure of real estate is conducted correctly and that all applicable taxes are paid.
Notary fees are a legal requirement and you, as a buyer, should take them into account when making your budget for buying holiday accommodation.
Notaries are objective advisors who can give you useful legal advice. However, do not confuse them with lawyers. Only a lawyer can represent your and only your interests.
Additional information about real estate abroad
Investing in real estate: General info
The page Investing in real estate [AVAILABLE SOON]: Reasons and tips to convince your partner contains interesting information on why real estate can be an option as an investment alternative.
Investment property cannot be ignored in the context of retirement planning either. It can be an ideal retirement plan to put in your pocket extra retirement income every month with rental property [AVAILABLE SOON]!
The following pages are also particularly interesting:
- Investing money in real estate [AVAILABLE SOON] - Tips for building an empire
- Invest in real estate with rental guarantee [AVAILABLE SOON] - Overview of investment packages
- How to invest in real estate? [AVAILABLE SOON] 7 lessons from experienced investors
- Real estate investing for beginners - Tips and advice for novices with no experience of physical property
- Buy a house in rented condition [AVAILABLE SOON] - Six good tips + overview of properties for sale
- Buying a rented house for a higher return [AVAILABLE SOON] - It can be done abroad as well
- Investing in rental properties - As a landlord or completely passive?
- Investing in rented houses with rental guarantee [AVAILABLE SOON] - Analysis of pros and cons + overview of available investments
For medical (liberal) professions the following specific information pages are interesting:
- Investing as a doctor in real estate [AVAILABLE SOON]? Think of your free time and choose the right strategy!
- Why doctors find real estate an interesting investment product [AVAILABLE SOON]