An important part of investing or managing in a holiday property is research. A rental property somewhere in the sunshine might seem like a dream come true, but if you do not conduct proper research you might find that your let turns into a nightmare. It really is worth investing a few hours scouring the net or making calls to get a better idea about the details that your holiday let will involve. So, what sort of thing should you be looking for?
There might be a number of local laws in your desired overseas territory that restrict letting or property development. You should research if this applies where you are looking to buy and make sure that you do not fall foul of any local legislation.
Overseas Property Market
You should look hard into current trends in the property market in the particular area you are looking to invest in. Some countries have a culture of renting property for long tenancies and it may be more profitable to invest in areas where you can guarantee local interest. Some places, however, will draw in only tourists and you should market your property appropriately.
Property Sales Culture
It will also be worth looking into how properties are sold and marketed in your overseas destination. Many countries have a very specific etiquette when it comes to selling and buying property. An agent specialising in overseas purchases might be able to help you out here.
Researching your Costs
Overseas property comes with an obvious upfront cost but you should consider the impact of things, such as, a local tourist tax and the cost of Overseas Property Insurance. You should research how much you expect these costs to come to and factor them into your budget.
Of course, the list above is far from exhaustive and you should research your investment in as much detail as you possibly can: it will help both you and your tenants get the most that you can out of your overseas property.