As the cost of living in the UK rises, more and more of us are looking to foreign climes; there are currently over 1 million homes in Spain and France which are owned by Brits as a second home, and a further 20,000 of us consider buying second properties abroad every year.
While owning a second home might not seem like a worthwhile investment at first, it can actually be a good source of income and, of course, cheaper holidays!
But before you decide to become an overseas property owner, there's a few things you should consider:
What will the property be used for? Do you intend to live in it for part (or all) of the year, rent it out to tourists or locals, or a combination of these? Your answers to these questions will help you to decide on the correct location; if it's to be a residential property then proximity to local tourist hotspots needn't be as important as being close to amenities such as supermarkets and the like.
How will you pay for the property? Overseas mortgages are relatively easy to come by, and you can set up regular international money transfers with a currency broker to get a good exchange rate on the money you transfer into the mortgage account. Of course, if you're renting the property out you'll need to ensure you charge enough to cover your costs and make a little profit, and don't forget you'll also need adequate insurance.
Where in the world should you buy? Research is key here; if you do plan to rent the property out you should try to find an area in a country which has proven desirable with tourists. Travel agents may be able to help you here, and the Office of National Statistics also holds some useful data on the tourism trade.
What are the legal requirements of overseas property ownership? Don't assume that every country will be the same as the UK when it comes to property ownership laws. For example, earlier this year the Argentinean President announced restrictions on the amount of land foreign landowners could buy, and that no single nationality could own more than 30% of this amount.
Whichever country you choose to buy property in, taxes and restrictions may apply so it's vital that you find out everything you can to avoid problems later on.
If you're planning to live in the property, you'll also need to consider employment and schooling. Again, some countries will have restrictions on what jobs and schools ex-pats have access to, so find out as much as you can. It usually helps to have a trade or skill which is transferrable, as some countries won't allow prolonged stays if you are unable to support yourself with employment.
This is by no means an exhaustive list, as buying a property abroad is not a decision to be taken lightly, but the above points should serve as a starting point and give you an idea of the kind of things to consider.