Aspects to Take into Account When Buying a Holiday Home
If you and your partner have worked hard for a few decades and are now in a position to buy a second property, this will be ideal for when you retire, and, of course, if you are going to invest in a second home, it should be located somewhere special. If you’re in the enviable position of looking to acquire a holiday home, here are a few important aspects to consider.
- Location – It should be a place that has everything you are looking for; you can buy luxury waterfront residences in Phuket from an established local developer, and you can’t get a better location than southern Thailand. You can escape the cold UK winter and enjoy the tropical paradise that is Thailand, which is a premier holiday destination, and regarding land value appreciation, there’s no better location than the stunning island of Phuket.
- Generating an Income – Aside from providing you with luxury accommodation when you feel like a visit, your holiday home can generate quite an income if you ask the property management company to include your home in their listings of short-term rental. This makes your investment work for you, plus your property comes under their care umbrella, with building repair or maintenance.
- Political Stability – If you purchase land in a foreign country, you are at the mercy of their laws, and should there ever be a military coup, for example, you could lose everything. When looking at foreign countries, look for a long period of political stability, with a democracy in place, and, of course, the economic state is also an issue.
- Legality – It is essential that you consult an established local lawyer, who will ensure that all is as it should be, and for what this costs, you really do want to have a legal expert looking into the contract of sale. If you are leasing the land, make sure that you have an option to extend the 30-year lease for at least another 30 years, and as a general rule, always have a lawyer oversee the transaction.
- Long-Term Prospects – Ideally, you should buy a holiday home is a very desirable location; preferably one that is established and therefore has all the amenities, and in order to have top rated security in place, your holiday home should be within a gated community, with round the clock manned security. If the location is right, you can expect to see a handsome profit, should you sell in 5-10 years.
If you consider all of the above, you should be very happy with your choice of holiday home, and with a property management company, you will receive a regular income during times you are not using the property. They will list the property on your behalf, screen potential tenants and generally maintain your home, which is a win-win situation for you, the property owner.