Properties Overseas have been asked this question recently by many people who now wish to reassess thier options for the future.
Part 1 – The Holiday Home
Not a easy question to answer. Here we look at a number of factors which come into play in the thought process. Both practical and emotional ones will feature. Over time we develop personal ties and relationships together with memories associated with a particular area. In this post we look at questions you may need to ask yourself. Some are commonly shared with investment properties and others more closely aligned to properties purchased as a holiday home.
The pandemic has impacted us in a host of different ways but with more time to reflect on where, why and how we spend our money the topic has come into sharper focus in people’s minds.
Questions to ask yourself
What does the property means to you now?
How do you use it? – Are the visits little and often for short breaks, longer stays of several weeks, or just occasional usage?
Why was it purchased orginally and does it still hold value to you?
A holiday home can be purchased at different times in your life, possibly when a family is a young and growing. As children grow into adults priorities change or, as parents head to semi or full retirement, they want an alternative type of property or a change of location. Are you in this position?
If you have held the property for a number of years how has the area developed in that time? Do the leisure, transport and essential services suit your needs now and will they in the future?
Financial Considerations
Is the cost of owning the property still worth it?
Do you know the total financial costs? Have you factored these in:
- Local taxes, community fees, mortgages or any outstanding loans.
- Annual maintainance budget to include repairs, replacement furtniture, white goods etc.,
- The cost of services you may use e.g. gardener, key holder, security or upkeep of a pool, and probably a fiscal representaive etc.,
- If rented out even partially through the year, look at the return it is achieving after expenses and taxes. The Spanish tax authorities have tighten up over the last several years to ensure if Spanish properties are rented out by non residents it is legally registered, conforming to required standards and taxes paid.
In Summary
Having said all the above, a holiday home is often not purchased for just financial considerations as a investment property might be. The emotional attachment can be strong and have deep sentimental reasons behind the initial purchase e.g. inheritance from a family member, or childhood holidays in a specific area.
Weigh up the financial side against the return on the pleasure of retaining the property. Ultimately is the property a gain or a drain?.
Sometimes things beyond your control such a health reasons may force a decision. A warmer climate and a healthy lifestyle can be very attractive and just what the doctor ordered. However, if the ability to travel to enjoy the property is proving difficult this can be the deciding factor.
The Market
In Spain as in the UK demand for property varies depending on location. Our recent experience shows strong demand for good quality apartments, townhouses and villas in Nerja and Frigiliana. Costa Blanca South, in particular Orihuela Costa featuring Playa Flamenca, La Zenia, Cabo Roig and Campomar for properties modestly priced have been attractive to potential buyers.
Properties Overseas have been able to assist those who have made the decision to sell. We have project managed sale and enabled our clients to avoid the need to travel to Spain to make the necessary connections and arrangments. We have helped a variety of people and in some cases released them from a financial burden that had been an increasing worry.
Properties Overseas can be flexible in how much or little involvement we have in managing the sale of a property .
If you are interested in our comprehensive package of support, contact us at info@propertiesoverseas.co.uk or ring us on 03300 011247