Property is almost always a smart place to put your money. The value of bricks and mortar goes up year on year, and it’s always something that’s going to be in demand so will never ‘fall out of fashion’ or mean you lose out due to lifestyle trends. Plus there are a number of ways you can make money with property; aside from buying and selling for a profit, becoming a landlord and renting them out can be very lucrative. If you’re looking to invest in a second home to rent out, one question that might be on your mind is whether you should buy at home or abroad. As with anything, there are pros and cons to each. Here are a few considerations that might help you to make up your mind.
At Home: The Pros
One of the main benefits to renting out a property close to where you live, especially if you plan on managing it yourself is it’s practical. If there are any issues, you can get there in person to find out what needs to be done. If you are needed for anything important, then you can get there without having to book flights and take time away from your other commitments. As far as the law and everything else goes, it’s a lot easier to buy property in the country where you live making the process a little more smooth and simple. You could even buy a house to rent out now, and then when your children grow up they could move into it- this isn’t something you can do when your property is overseas. If you come across difficult times and need to sell up, again doing this with a property in the country where you live is going to be quicker and easier with fewer complications.
At Home: The Cons
Depending on the area where you buy the property, there might not be a huge demand for rented houses, or they might not fetch a very high rent. If you’re renting in the area or country where you live as opposed to in a tourist spot, you will be renting the property out as a home instead of as holiday accommodation, and this means you could potentially end up with nightmare tenants. Due to things like squatters rights and other difficulties, landlords renting out homes can often come up against issues which are expensive and time-consuming to deal with. When you’re renting out to tourists, there’s less chance of this happening since the people staying in the property live overseas themselves and are only in the country for a short while.
Away: The Pros
One of the biggest pros of buying a home abroad is that you can also use it yourself when you go away. Whether it’s a week, a month or six months out of the year, owning property abroad can certainly save you money when it comes to travel accommodation and allows you to get over and see another part of the world whenever you want. Want to visit Bali, Jakarta and experience the floating markets in Indonesia year after year?
Sites like http://rumahdijual.com/palembang/perumahan-baru can help you find property all over the country. Perhaps you’re a keen skier, if so a chalet or log cabin close to a stunning ski resort would suit you and be easy to rent out to tourists. If you love the beach, a beachfront villa could be your kind of thing. Or if you love shopping, the hustle and bustle and plenty of attractions right on your doorstep you could go with a city apartment. The world is your oyster, if you’ve travelled to a place which has really resonated with you then owning property, there could be a dream that you’re able to fulfil. Another huge benefit to buying abroad is if you’re buying in a tourist area is that you can rent it out as holiday accommodation instead of as a home, meaning you can get a lot more money for it. Instead of a few hundred a month like you’d get from a home, you could get the same for a week when it comes to tourists. One of the biggest benefits of buying a property abroad is the price. Many places in the world allow you to get a huge amount for your money, far more than you will probably get in the place where you live.
Away: The Cons
Buying a house even in the country where you live is complex enough. Buy overseas, and it can be particularly tricky. With different laws and sometimes even a language barrier, there’s no doubt that it’s more difficult making such a big purchase away from the country where you live. You have to be careful of scams, and with such large amounts of money changing hands, it can leave even the most calm and collected person feeling on edge. The trick is to find a good agent and solicitor who specialise in the buying and selling of overseas property who can guide you through the process. Another thing to consider when you’re buying abroad is if something goes wrong and you need to be there in person, the cost of travelling can quickly add up. Plus, as tax and other financial matters are worked out differently, you have to be very careful that you’re following the law and doing everything by the book to prevent you from getting into trouble. You will also need to find a good estate agent where the property is who can manage it for you since you will be in another country. There are fees for this, so it’s something to factor in when you’re working out costs and whether it will be worth it.
Whether you choose to rent out a property in the country where you live or go overseas, it’s a fantastic investment and something that will allow you to grow your wealth.