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Holiday home abroad

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  • 15-09-2019 1:31pm
    #1
    Damiencm
    Closed Accounts Posts: 280 ✭✭


    Or have you in the past?

    I have always had a silly dream to own a holiday home abroad but when ever I do the sums it just doesn't work.

    This is versus staying a a midmarket hotel/apartment a few times a year.

    Also assuming a budget friendly property outside the major resorts.

    How has it/did it work for you?
    Any regrets?
    Where did you buy and how often do you actually get to use the property?
    Do you rent it out?
    How have you fared regarding ongoing costs?

    Did you buy with a view to staying for longer periods as you got older?


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    #2
    BrokenArrows
    Registered Users Posts: 7,500 ✭✭✭BrokenArrows


    I haven't owned one, but it only makes financial sense if you rent it out the rest of the year.


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    #3
    Damiencm
    Closed Accounts Posts: 280 ✭✭Damiencm


    Foreign rental can be difficult when you are not around to keep an eye on things.

    Finances aside (if thats possible) what are peoples experiences.


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    #4
    Darc19
    Registered Users Posts: 3,817 ✭✭✭Darc19


    Used to have one here in Kerry, but lived in Cork at the time.

    Sold it two years ago and don't miss it. We felt we had to go there and whilst we rented it for a few weeks every summer, the hassle wasn't worth it.

    It was a choice between doing it as a permanent rental and maybe using it in the off season or selling.

    We sold it and now enjoy choosing different places to go to.

    I can only imagine that if it was located abroad, it would be more difficult to manage


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    #5
    DubCount
    Registered Users Posts: 1,065 ✭✭✭DubCount


    If you want a holiday home as a lifestyle choice, then I guess its down to personal choice. Will you be happy going back to the same holiday location again and again? How many holidays do you/your family get from your jobs? Would you like to retire to somewhere in the sun?

    I also think you need to decide if you are happy for the holiday home to be part your home, and part holiday let, or do you want it as yours exclusively?

    Property markets in foreign countries can be very different to what we are used to in Ireland. The legal process can include significant costs for local lawyers etc., and being comfortable with title etc. can be very strange. There can be also lots of ownership costs for things like water charges, and property taxes which we are not a factor in Ireland. The cost of filling a swimming pool in many European countries can be expensive.

    Finally, as an investment, you may have to consider foreign exchange risk, and extra costs for hiring foreign tax processing etc.


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    #6
    the_syco
    Registered Users Posts: 37,295 ✭✭✭✭the_syco


    Can you speak the local language? If not, you'll need to find the one local that speaks your language. And I'm sure they'll charge you up the hole for whatever you want fixed, as you can't deal with anyone else.

    Airports. They're great. Unless the cheapy airport that you use, becomes not so cheap. Ryanair is to close its Spanish bases in Las Palmas, Tenerife South, Lanzarote and Girona from January. So suddenly the cheap flight over to your holiday home could shoot up. And as there's no cheap flights go there anymore, it'll be harder to shift it.

    What are you going there for? The beach? Because most things will lose their appeal after being there a few times, and should said beach be closed, what then?

    Replace beach with why you're buying local. I know of a family friend that has bought a place in Portugal, near a few golf courses. They rent the place out to fellow golfers that they know, who want to play golf there. They like playing golf there in the sun. It's a big house, that only really gets used during the summer, as the area looks fcuking souless during the winter.


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    #7
    Spanish Eyes
    Registered Users Posts: 15,865 ✭✭✭✭Spanish Eyes


    Rent the best you can afford. In different magic places all over Europe.

    You will NEVER spend anything like the cost of buying and funding abroad by doing this.

    I am speaking from experience here. .

    It works for some for sure, but not for me/us anymore.


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    #8
    Damiencm
    Closed Accounts Posts: 280 ✭✭Damiencm


    Just to clatify... I'm not buying!! Nor am I looking for advice as such

    I'm just curious about people who have actually taken the jump and how it has worked out for them


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    #9
    coleen
    Registered Users Posts: 373 ✭✭coleen


    We have often thought about it, but have booked many Air B n bs at very reasonable costs in lots of different location so really have decided that unless you are going to move it is not worth while.
    We have seen long term let’s which we hope to do in a few years in warm places for very little money. With that option you can travel to different places and have different experiences so we have decided to book places instead.
    We are close to retirement and hope to spend at least 12 weeks abroad every year and still think renting is the cheaper and more affordable option. It also gives you variety of places to visit. If flights are dropped then you can change location.
    My sister rents in Florida and Europe is so much cheaper it has a lot going for it.


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    #10
    krissovo
    Registered Users Posts: 2,645 ✭✭✭krissovo


    We bought a 3 bed apartment outside Puerto Banus in a semi residential area, Los Naranjos. First 4 to 5 years it worked out really well while we were having children and they were young. We would stay for extended periods during the wife’s maternity break as I could work from anywhere that had internet and a airport. We would rent it out for peak season(s) Easter, Christmas and of course summer. Once kids were in school it went a bit downhill and at best we broke even as we wanted the apartment in peak season and didn’t bring much rent in the rest of year. Also flights have significantly increased to the point where 2000 euro to get the family over and back is the average price so its not great to bring family together anymore.

    Now we rent to residents on long term contracts via local letting agencies. So much less hassle and a steady income, could probably make more with holiday lets but this way at least its lived in and maintained all year. Have not been there in 4 years and I don’t really miss it.

    From an investment point of view the property has increased in value significantly and does bring in a modest income but I am probably 10 years away from retirement and I would not like to spend time there when I do. With the cost of flights now its much better for us to shop around for value plus the area now is getting very expensive. We didn’t think of that when we bought as we were getting 2 paychecks at the time.


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    #11
    Murt10
    Registered Users Posts: 1,188 ✭✭✭Murt10


    On the Spanish Costa Blanca, there is a straight 10% stamp duty to consider when buying. Other costs, legal etc will run you a further 4%.

    Then, when you go to sell the estate agents charge you 6% and other fees will add another 3-4%.

    So, just to break even, you need to sell for approximately 25% more than you paid for the place originally.

    On the other hand, if you have E100,000 sitting on deposit, you will get .5% interest, less dirt. With inflation running at over 2% (feels like more) your money and buying power is depreciating in front of your eyes.

    Also, my advice is to never buy new. The only real value is in 2nd hand.

    New houses/apartments are always, in my experience, pitched at the highest possible level. It will take you an awful lot longer to sell for an extra 25% over what you paid for it, than it will to gain 25% on a 2nd hand property, that you have bargained hard for.

    Plus why would you expect someone to buy your 2nd hand house when you went for a new one yourself.


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    #12
    Doc95
    Registered Users Posts: 6 ✭Doc95


    I also have the dream of buying in Spain, as I scan through kyero most evenings. I would like to think I could of bought an apartment and spent a few weeks each year in it and not be carrying luggage through airports all the time. But when you think about it financially it makes a lot more sense to long term rent


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    #13
    Doc95
    Registered Users Posts: 6 ✭Doc95


    I also have the dream of buying in Spain, as I scan through kyero most evenings. I would like to think I could of bought an apartment and spent a few weeks each year in it and not be carrying luggage through airports all the time. But when you think about it financially it makes a lot more sense to long term rent


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    #14
    the_syco
    Registered Users Posts: 37,295 ✭✭✭✭the_syco


    Doc95 wrote: »
    I would like to think I could of bought an apartment and spent a few weeks each year in it and not be carrying luggage through airports all the time.
    What will the draw be? The sun? As everything else may get boring after a few years. Also, what happens when the nearby cheap airport suddenly only takes expensive flights in?


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